City Failed to Collect $9M in Hotel Taxes: Report

Tuesday, November 29, 2011

The Bloomberg Administration has failed to collect taxes from 92 hotels in the city to the tune of $9 million excluding fines and interest, according to an audit from the city comptroller's office.

Hotels are required to register with the city once they open, and the Department of Finance follows up to collect the tax on a quarterly basis. Of the 92 hotels, 84 never registered and never paid. Eight hotels registered but under-reported what they owed.

The comptroller's office, headed by John Liu, said the collection process needs to be streamlined.

The tax in question is the Hotel Room Occupancy Tax, which is 5.875 percent of the room rate.

Earlier this month, Mayor Michael Bloomberg announced he supports extending the 0.875 percent surcharge in the tax for two more years.

It was scheduled to expire at the end of November.


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