Kingston’s Proposed Occupancy Tax Raises Bigger Questions About Fairness and Process

Kingston’s proposed 5% city occupancy tax is about more than just hotel stays—it raises important questions about fairness and how our city makes decisions.

First: Do we impose a similar, industry-specific tax on other types of businesses in Kingston? Retailers, restaurants, and service providers already collect the standard 8% sales tax. Lodging businesses collect that same sales tax, plus the 4% Ulster County occupancy tax. If this proposal passes, the total tax on a hotel stay in Kingston would rise to 17%—higher than anywhere else in the state.

If other sectors don’t face a similar surcharge, why single out hospitality? Tax policy should be broad and predictable. Singling out one of our most visible and economically important industries sets a troubling precedent. When the city faces fiscal pressure, should one industry be the first to pay more?

Second: Major tax policy changes deserve robust discussion, particularly with the businesses most directly affected. Good governance requires transparency, deliberation, and collaboration—not speed.

Tourism and hospitality are vital to Kingston’s economy. This proposal comes just two years after Ulster County doubled its occupancy tax. Adding another 5% risks putting Kingston at a disadvantage compared to nearby towns, potentially hurting reservations, events, and visitor spending.

We should be supporting one of our strongest industries—not isolating it. Before moving forward, the city should pause, engage with stakeholders, and ensure both the policy and the process are fair and economically sound.

We encourage concerned businesses and citizens to write letters to the mayor and Common Council, and/or attend a public hearing on the proposed occupancy tax on Monday March 2 at 6:45 PM in Council Chambers.