EDITORIAL: On Buffalo’s Stupid Bed Tax Idea | Notice

We generally do not intervene in financial matters of the City of Buffalo.

But we sometimes recognize how Buffalo’s financial issues can impact the broader Western New York region.

We are particularly concerned, and everyone who lives and works here should be, about a proposal to implement a 5 percent Buffalo hotel occupancy tax.

For those who don’t know, hotel occupancy taxes, commonly known as “bed tax”, are charged to people who stay in local hotel rooms. In other words, mostly foreigners. Erie County already has such a tax. Buffalo wants state lawmakers to impose one for the city proper, arguing that the revenue generated would help fund police, fire and other crucial services.

Bed taxes are often seen by politicians as a “safe” tax since they have a greater impact on visitors’ wallets than on local home and business owners.

Of course, leadership in this area, being what it is, never seems to be lacking when it comes to finding new ways to tax and force people to move and stay away.

This particular tax is particularly troubling because it impacts what should be one of our region’s best options for economic growth: tourism.

Fortunately, state lawmakers agreed and canceled Buffalo’s bed tax plan, which would require state approval to implement, before the session in Albany ended this year.

State Sen. Sean Ryan, a Buffalo Democrat, noted that if the bed tax deal had gone through, Buffalo — yes, Buffalo — would have had the third-highest bed tax in the country.

Coming back to Ryan’s point, this tax was proposed in Buffalo as summer is about to set in in Western New York, a time when literally millions of visitors will come in our area to see Buffalo and, of course, Niagara Falls.

“This additional cost would put Buffalo hotels at a competitive disadvantage and drive tourists to hotels outside the city,” Ryan said. “It’s a recipe for disaster for a city whose tourism is only just recovering from the pandemic.”

Some might argue that it would be better for Buffalo to raise the hotel tax, because then some travelers would consider the potentially cheaper option: staying at lower-tax hotels in Niagara County.

This is short-sighted thinking.

This is often the case when travelers visiting Buffalo or Niagara Falls plan to stop and visit sites in other parts of the region. Closer to home, good options can be found in Lockport, Lewiston, North Tonawanda and other communities.

Travel to Western New York should be some of the most affordable, not the most expensive.

An additional tax in Buffalo hurts us all.

The whole affair is a nod to what has been one of the region’s biggest problems for many years: finding ways to consolidate the public sector at the expense of a robust private sector.

To remind all our elected leaders, for the region to prosper, the balance between the public and private sectors must be reversed.

Many local businesses – hotels, restaurants, mom-and-pop shops – have experienced great difficulty since emerging from the pandemic.

Adding a tax on hotel occupancy was certainly not going to do Buffalo hotel owners any favors.

It also sends the wrong message about doing business in Western New York as a whole.

We are happy to see Ryan and other state legislators pass Buffalo’s ill-timed and senseless bed tax plan.

Here’s a better idea: Instead of imagining new taxes, let’s think about ways our local economy, including the tourism sector, can grow.