MONTICELLO, NY — A resolution to change how room tax money gets stored raised hackles and suspicions at an April 14 meeting of the Sullivan County Legislature’s management and budget, capital planning and budgeting committee (MCBC).

Sullivan County collects a five percent room tax from hotel room and Airbnb rentals. Historically, the bulk of the room tax money went to the Sullivan County Visitors Association (SCVA), a tourism promotion agency. The legislature passed a law in 2021 that gave the county leeway to grant the room tax funds to other agencies; that change, plus record levels of room tax intake, has resulted in $1.6 million in surplus piling up in county coffers.

When the county collects room taxes, that money goes into its general fund, an unrestricted account. Once the county sends the SCVA its share, the remainder gets moved into a restricted, room-tax-specific account; according to the state’s room tax statutes, 85 percent of the money collected through room taxes has to be spent for the purposes of tourism promotion, and the restrictions on the fund ensure that will happen.

The April 14 resolution moved the past year’s surplus—$939,197.02—to the restricted fund, resulting in a total balance of approximately $1.6 million. The resolution also authorized the county manager and the county treasurer to make that transaction on their own authority for future years. 

Ira Steingart and Joe Perrello, two members of the legislature’s minority and bipartisan faction, had misgivings. 

“There’s a scheme behind all this... we haven’t figured out what it is yet,” said Perrello. 

“This is not a scheme,” said county treasurer Nancy Buck. “I want this restricted, our accountants want this restricted, so it’s identified.”

Perrello and Steingart voted against the resolution, leading to a 2-2 vote on the MCBC, blocking its passage. 

Rob Doherty, chair of the legislature, stepped in to break the tie and allow the resolution to pass. While Doherty does not sit on the MCBC, he has the power as chairman to vote on any committee “ex officio.”

Renovating blighted properties

The previous week, at the April 6 meeting of the planning, real property and economic development committee, the legislature heard a presentation from Jill Weyer on behalf of the Sullivan County Land Bank (SCLB). 

“The mission of the land bank is to strengthen neighborhoods by mitigating blight through strategic property acquisition that will create vibrant neighborhoods, increase home ownership, stimulate economic growth and support community development by returning properties to productive use and improve the quality of life for our county residents,” said Weyer. 

The SCLB accomplishes that mission by acquiring foreclosed properties and returning them to active use (and to the county’s tax rolls). It has acquired 75 properties since its 2017 beginnings, and has “disposed” of 22 through sale to homeowners, in mergers with other lots and by other means. Many of the properties remaining are empty lots; some are unbuildable, but the SCLB is working to get many of them developed or merged with other lots, said Weyer. 

Plans for 2023 included more demolition, more new construction and movement on a project to redevelop properties in Monticello. 

Rural communities across the state looked to the SCLB as an example, Weyer said—while land banks weren’t quick fixes, they were tools for pushing development in the right direction. 

“We appreciate your support and patience as we continue to grow the land bank and address our housing needs and improve our neighborhood,” said Weyer. 

The presentation was requested by Doherty at a March meeting of the legislature; he was not in attendance for the April 6 presentation.