Lancaster may tax overnight stays in hotels and motels

Lancaster may adopt a local law taxing people who stay in hotel or motel rooms. The tax may cover overnight lodging facilities in Lancaster, Erie County, including hotels, motels, bed-and-breakfasts, and tourist facilities. The tax rate may not exceed 3% of the room's daily rental price. The tax does not apply to a person staying at least 90 consecutive days. The section excludes certain transactions involving state and local governments, the United States when it is immune from taxation, and qualifying nonprofit groups; groups operated mainly for profit do not qualify for the nonprofit exception. The law took effect immediately and expires December 31, 2029. Each local tax law may last up to three years, and Lancaster may adopt another when one expires.

Lancaster's chief fiscal officer may collect and administer the tax, and a local law may set how room owners collect and pay it. These rules apply to a tax Lancaster adopts under this section. A local law may require the person paying for a room to pay the tax to its owner or the person entitled to receive the room charge; that person may be responsible for collecting and paying the tax to the town. A local law may set monthly or other filing and payment periods. Tax revenue goes to the town's general fund and may be used for any lawful purpose. A local law may require tax returns and payments monthly or over another period.