AUDIT IDENTIFIES OVER $250,000 IN RECOVERABLE OCCUPANCY TAX REVENUE: COMPTROLLER RECOMMENDS OCCUPANCY TAX ADMINISTRATION CHANGES
Kingston, NY (August 6, 2025)- Ulster County Comptroller March Gallagher today released the Ulster County Occupancy Tax Audit, which examined taxpayer compliance and County oversight of occupancy tax collections between December 1, 2022, and May 31, 2024. The audit, requested by County Executive Jen Metzger, focused on hotel operators who claimed exemptions, operated as all-inclusive, or reported more than $1 million in annual revenue.
The audit calls for:
- Clarification of key terms such as “other charge” and “resort fee” within the occupancy tax law to reduce confusion over exemptions.
- Modernization of filing systems, including online payment, automated reminders, and integrated tax tracking.
- Stronger oversight of exemption claims, with standardized documentation and periodic reviews.
- Consistent application of penalties and interest for non-compliance.
The Department of Finance agreed with all audit recommendations and has already begun implementing several changes, including requiring supporting documentation with filings and initiating steps to modernize administration considering recent state law changes regarding short-term rental platforms. Short-term rental occupancy taxpayers were not within the scope of this audit. The County also plans to conduct a biannual review of the tax law to ensure continued alignment with industry practices.
