To the Editor: In a county legislative hearing on March 19, representatives for the “mega, all-inclusive” hotels and resorts in the area pled their case for a tax reduction on an already reduced tax. The base rate for defining the cost of their rooms alone is currently 40 percent of all charges, not including meals, activities, and other amenities. To this room cost, the new county occupancy tax of 4 percent would be applied. In order for it to be “fair,” the speakers said the base rate should be reduced to 20 percent. They referred to data that outlined their operational costs, and they noted that they dutifully pay other property and sales taxes.

Their arguments were fundamentally misleading. Crucially, the businesses themselves are not subject to the occupancy tax; it is their customers, who are largely out-of-area visitors, who are taxed. Repeat: Customers pay the tax. These large hotels would argue that competitive pressures would force them to raise their prices and deter customers from booking. In fact, they are successful businesses highly experienced in setting up cost and price structures. They will continue to be successful when they make adjustments to pricing. Their customers — often corporate or international — who can afford their high prices to begin with will not likely flee, especially when the occupancy tax in neighboring counties is higher than Ulster's.

Regarding fairness, if the mega-hotels win their tax break, their customers would be paying close to the same dollars for their “rooms” as average folks pay for average hotels and motels, which also offer amenities and activities like swimming pools, fitness rooms and breakfasts. (These establishments get base rates for rooms at 60-85 percent of full cost.) With the proposed reduction, a guest with a luxury room charge of $600 at the mega hotel would pay less of an occupancy tax fee than Frank and Eva Average booking for $150 at a smaller hotel/motel. A familiar tale of breaks for the wealthier.

Importantly, the new occupancy tax is intended to funnel money into the Ulster County Legislature's recently enacted Housing Action Fund. This fund, resoundingly supported by legislators last year, is intended to seed projects aimed at easing the county's glaring housing crisis. A victory for the mega hotels would pull a million dollars of the anticipated revenue from the occupancy tax, crippling the program at its start. C’mon big guys, suck it up, adjust your balance sheets, serve your customers, and do your part to ease the housing crisis that even you have acknowledged hinders your ability to hire and keep your workers.

Tom Denton

New Paltz