Kingston can tax overnight stays in hotels under local law

Kingston may adopt a local law taxing overnight room rentals. The tax may cover overnight rooms in hotels, apartment hotels, motels, bed-and-breakfasts, and similar lodging places in Kingston. The city must adopt a local law to impose the tax. The rate may not exceed 3% of the room's rental price. Each local law may impose the tax for no more than two years from its enactment. The state authorization expires on December 31, 2029.

The local tax may not be imposed on specified public bodies, qualifying nonprofit organizations, or permanent hotel and motel residents. The exemptions apply to the tax authorized for Kingston hotel and motel stays. The exemption for the United States applies only to the extent it is immune from taxation. The nonprofit exemption covers qualifying religious, charitable, educational, and animal- or child-protection organizations, subject to limits on private benefit and lobbying; it does not cover an organization primarily operated as a for-profit business. A permanent resident is a person who occupies a hotel or motel room for at least 90 consecutive days.

Tax revenue must go to Kingston's general fund and may support city services, infrastructure, and other essential expenses. This applies to revenue from a tax imposed under Kingston's local laws. The Common Council determines how to use the revenue.