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Onondaga County is taking legal action against nine local hotels for failing to remit nearly $2 million in unpaid room taxes. The district attorney's office plans to charge the hotel owners with felony crimes unless they pay the overdue taxes. The hotels have collected a seven-percent room occupancy tax on behalf of the county, which they are required to submit every three months. However, they have retained these funds for years.
According to Syracuse.com, charging hotel owners with criminal offenses for tax delinquency is unprecedented in New York State. County Executive Ryan McMahon has referred the matter to the district attorney's office, which is considering charges such as tax fraud and grand larceny.
Joseph Coolican, the First Chief Assistant District Attorney, emphasized the seriousness of the situation, stating, "This is theft. This is larceny." The district attorney's office has indicated that the situation is deliberate and that traditional methods, such as late fees, have been ineffective. CNY Central reports that one hotel, Candlewood Suites in East Syracuse, owes more than $563,000.
The county tax, which supports tourism initiatives, remains inaccessible due to the unpaid amounts. The district attorney's office has not disclosed how the unpaid taxes are being used but has indicated that the hotel operators could face charges of grand larceny, filing false business records, and tax fraud. The county is determined to take the necessary steps to resolve the issue, as payment plans have been exhausted.