Amherst may tax room rentals and direct some revenue to town facilities

Amherst may impose a tax on room rentals and set rules for collecting it. The tax may cover rooms in hotels, apartment hotels, motels, boarding houses, and similar public lodging places in Amherst. The town must adopt a local law to impose the tax. The tax rate may not exceed 2.5% of the room's daily rental rate. The authorization took effect immediately and expires December 31, 2029.

Amherst must deposit the tax revenue in its general fund and use it as specified. These rules apply to revenue from a tax imposed under Amherst's local law. The town may use 75% for any lawful purpose. The remaining 25% must pay for capital improvements at town-owned facilities related to youth and amateur sports, health and wellness, community centers, parks, and playgrounds.

The law exempts certain guests and organizations from the tax and sets rules for challenging tax decisions. These provisions apply to the occupancy tax authorized for Amherst. Exemptions cover state and local public entities, the United States where immune from tax, qualifying nonprofit groups, and permanent hotel or motel residents. A permanent resident is a person who occupies a room for at least 30 consecutive days. A challenge to a final tax decision must be filed in court within 30 days after notice. A challenge to a denied refund has a similar 30-day deadline.