MAYVILLE - A local law amendment may give cottage and rental property owners an amnesty period to become compliant with county occupancy tax mandates.
George Borrello, R-Irving, has drafted an amendment that will give renters unaware or unwilling to comply with the law until Dec. 31, 2012, to register their properties with the county finance department.
Borrello said he has been contacted by several residents after a story in The Post-Journal outlined the county's attempt to crack down on those not collecting and remitting the 5 percent occupancy and bed tax.
"Constituents contacted me because they were nervous about the idea of back taxes, which they've never collected, and the penalties," he said. "So I think a quick but prudent plan to deal with this issue is needed.
"The reason for having it apply only this year will hopefully give those that are not compliant the sense of urgency to register now and begin collecting the tax."
According to county law, the renting of a room or dwelling to the same party for 29 days or less is subject to the tax. Renters required to collect include: hotels, motels, cottages, condominiums, apartments or other properties kept for lodging throughout the county.
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"The reason for having it apply only this year will hopefully give those that are not compliant the sense of urgency to register now and begin collecting the tax."
George Borrello
R-Irving
A portion of the tax, which totaled $1.2 million last year, is used to promote tourism (3 percent) and local waterways (2 percent).
Susan Marsh, county finance director, said she would support the amnesty policy - although she added that she would prefer renters ahere now instead of waiting for a possible change to the law.
"I want to get the people to comply," Marsh said. "The tax is not coming out of their pocket, but they can't collect until they register with the county. It's a catch-22."
Since openly pushing the law, one renter has registered with the county, while no back taxes will be sought, Marsh said.
"I would like to see more comply now instead of waiting for the amnesty period, which might not even pass," she added. "We're not going after anyone until after this push."
Borrello, meanwhile, believes amending the local law will entice more to come forward.
"I think the best course of action is for us is to pass this amnesty program," he said. "It is certainly the fair thing to do. But it will likely create more compliance, and more revenue, than if we don't do it."
Marsh estimated last month that $25,000 from renters in the north county has yet to be collected this year. However, she said Tuesday she has recently received calls from residents around Chautauqua Lake inquiring about the occupancy and bed tax.
The local law amendment, which was mailed to all county lawmakers, will be discussed in the legislature's Planning and Economic Development and Audit and Control committees. If passed by lawmakers, the amendment must be filed with the Secretary of State to take affect.