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'Bed tax' could be enforced on Erie County Airbnb properties

Posted at 6:16 PM, May 18, 2023
and last updated 2023-05-18 18:16:54-04

BUFFALO, N.Y. (WKBW) — An Airbnb could cost you more in Erie County if the county legislature moves forward with a proposed tax for short-term renters. The tax would apply to people who rent for less than two months, or who use Airbnb and other similar platforms.

The tax is called the bed tax, which already exists for hotel guests.

Erie County Comptroller Kevin Hardwick helped introduce the proposal on Thursday. He said most of the revenue generated from this tax would go to Visit Buffalo Niagara to bring in more tourism. It would allow the organization to increase advertising beyond its 300-mile radius.

An estimation of how much money this tax would generate was not provided.

"We’re going to use it to promote tourism, which is going to bring in more people, help the Airbnbs, help the hotels, help the community," explained Hardwick.

Hardwick said this is one way to potentially stop an increase in property taxes.

During the two-hour conversation on Thursday, some legislators met this idea with opposition.

"I don’t see how you can treat a corporate entity the same as a mom-and-pop, which is trying to just invest locally around here," said James Malczewski, who serves Erie County's 10th District.

Chairwoman April Baskin and others feel that the tax would achieve equality for both hotels and Airbnb customers.

“[AirBnb hosts] are business owners,” said Chairwoman April Baskin.

However, some legislators feel that if Airbnb-style lodging is considered equal to a hotel, then the same zoning issues need to be enforced too.

The proposal will continue to be addressed by Erie County. Hardwick hopes it can take effect by 2024.