PRESS RELEASE
March 4, 2008

Majority Opposed to Democrat Plan to Raise County Bed Tax

Members of the majority of the Rensselaer County Legislature said they are opposed to a Democrat proposal to increase the county bed tax by one percent to pay for tourism programs.

The idea to increase the county bed tax from three percent to four percent was proposed by Democrat Legislator Peter Grimm at Monday’s Arts, Culture and County Heritage Committee meeting. Grimm said the additional one percent could be used to fund various tourism programs in the county.

Grimm and the other five members of the Democrat Minority introduced a resolution to establish a dedicated tourism development fund for the purpose of promoting and marketing in the county. Grimm, who was accompanied by Democrat Legislator Flora Fasoldt at the committee meeting, indicated he would introduce a more specific resolution  to impose the additional one percent bed tax.

Grimm, Fasoldt and the minority’s initial resolution discussed how counties, who all have a higher bed tax rate, contribute to tourism programs in their counties. The counties include Albany, Saratoga and Schenectady counties.

Majority Leader Robert Mirch and Legislator Laura Bauer, majority members of the Arts, Culture and County Heritage Committee, said they will oppose Grimm’s proposal to increase the bed tax by one percent. Majority legislators noted the 2008 county budget has already been set, and the county is struggling to deal huge expenses for mandates. The worsening national economy is also a factor.

“We don’t need an increase in the bed tax at this point. Gas prices are too high, which hurts tourism and an increase in the bed tax could further hurt tourism in our county,” said Mirch.

“An increase in the bed tax is definitely a move in the wrong direction, especially with the national economy in rough shape,” added Legislator Martin Reid, who attended the committee meeting.

The state is currently reviewing possible increases for funding tourism programs, including the I Love New York program. Discussions on state tourism funding will take place during the current legislative session.

“The county is very supportive of these organizations, and we believe the state’s tourism program should provide more resources not only to these county groups but other organizations across the state. We understand there is a possibility the state is increasing the amounts available for tourism, which is a further argument against increasing the bed tax,” added Bauer.

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