Herkimer County can approve a tax on paid overnight stays

Herkimer County can adopt a local law taxing paid overnight lodging at up to 5% of the daily room rate. Covered lodging includes hotels, motels, and bed-and-breakfasts in Herkimer County. The rate limit also applies to rooms rented for longer periods. The county must adopt a local law before imposing the tax. Exemptions cover New York government bodies and the federal government where it is immune from taxes. Certain nonprofits serving religious, charitable, educational, or child or animal cruelty-prevention purposes are exempt. They must operate exclusively for those purposes, provide no private earnings, and conduct no substantial lobbying. Businesses mainly run for profit do not qualify. People occupying hotel or motel rooms for at least 90 consecutive days are exempt. The law took effect upon signing on August 21, 2026, and expires December 31, 2029. Each local tax law can last no longer than two years; the county can adopt another when it expires.

Herkimer County must put room-tax revenue in its general fund and may use it for any lawful purpose. These rules cover all money collected from the authorized Herkimer County room tax. Revenue depends on the county adopting a local room tax and collecting money under it.

People can ask a court to review a final tax bill or a denied refund if they meet the payment-guarantee rules. These rules apply to disputes over the Herkimer County room tax. To challenge a final tax bill, people must either deposit the disputed tax, interest, and penalties and provide an insurance-company guarantee for court costs, or provide that guarantee for the entire amount. To challenge a denied refund, people must provide a court-approved guarantee for court costs. There must not have been a previous final decision on the tax due. The 30-day deadline starts when notice of the final tax decision or refund denial is given.