Rhinebeck board asks state for authority to impose 3% occupancy tax on short-term rentals

The Town of Rhinebeck board voted on March 10 to request home rule legislation from the New York State Legislature that would allow the town to impose a 3% occupancy tax on hotels, motels and short-term rentals.

Warren explained the proposal to the board, saying, “the tax would be 3%,” and that the town’s next step is to request special legislation from the state and work with Representative Hinchey’s office to advance it. He said the resolution is the board’s first step in the process and that the town will keep the public informed of the state-legislative process.

Why it matters: The tax — commonly called a bed tax — would require state authorization before the town could adopt it locally. Warren described the mechanics: the board passes a resolution requesting home rule authorization and then staff will coordinate with Hinchey’s office on the legislative process.

Vote: The motion passed on a roll-call in which multiple members recorded “Aye.” The transcript records board members answering “Aye” when polled, and no board member recorded opposition at the meeting.

Next steps: If the state legislature approves enabling legislation, the town would then enact a local law setting the tax’s collection and administration details.