By Michael Howard, Wall Street Journal
The New York City Council voted on Tuesday to extend an increase in the city’s hotel tax that was set to expire this week, adding roughly $2 to the average daily hotel room rate.
Beginning in March 2009, the city raised the hotel tax to 5.875% from 5%; that increase, which was slated to expire Wednesday, will now remain in effect for two more years.
Council officials described the increase as necessary during these tough economic times. The hotel industry voiced disappointment.
“It is a bad idea as both tourists and business travel planners compare jurisdictions when booking rooms,” said Vijay Dandapani, vice chairman of the Hotel Association of New York City. “It is an enduring myth that ‘socking it’ to out-of-towners has little or no consequence.”
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