Syracuse seeks state extension for hotel tax revenue source

Visitors are helping pay Syracuse’s bills, and city leaders want that revenue stream to stay open. The Syracuse Common Council asked state lawmakers to extend the city’s 2% hotel room occupancy tax before it expires on December 31, 2026, a levy that now brings in about $800,000 a year for the city’s general fund.

That money matters because Syracuse’s finances are tight. Mayor Ben Walsh’s FY26 budget said overall revenue was flat while retirement, medical insurance, salaries and wages kept rising. City officials have argued that the hotel tax gives Syracuse a steadier way to cover those costs without leaning harder on property taxpayers.

The tax was signed into law by Governor Kathy Hochul on November 22, 2024, and the Common Council approved it 8-1 in January 2025. It sits on top of Onondaga County’s 7% hotel and motel occupancy tax, making Syracuse part of a broader local strategy to ask visitors to help fund public costs tied to a regional tourism economy.

Councilor Corey Williams said the city has not seen the tourism hit that hotel opponents warned about when the tax was first debated. He said the levy currently nets about $800,000 a year, and adding short-term rentals could lift that figure to roughly $1 million. Earlier estimates had put annual revenue at about $1.5 million, but the city’s FY26 budget projected $800,000 from the new hotel room occupancy tax.

That gap is part of the stakes in the extension fight. If the tax were allowed to lapse, Syracuse would lose a revenue source that city leaders say helps keep the budget balanced without pushing more costs onto residents. The money goes into the general fund, where it can help absorb the pressure from rising expenses across city operations.

The city’s case also rests on growth. More hotel development in Syracuse would widen the tax base, and county officials have already moved to tax short-term rentals such as Airbnb and VRBO the same way they tax hotels. In Onondaga County, that shift was framed as a way to bring more lodging revenue into public services, infrastructure and tourism promotion.

For Syracuse, the ask is simple: keep the tax, keep the money flowing, and keep visitors contributing to the city’s operating stability. If the revenue disappears, the pressure shifts back to residents and the next city budget.