🎯 STRisker: Bulletin - Kingston, NY

Occupancy Tax Showdown: Kingston Weighs STR Impact

Photo by iloveny.com

Kingston’s Common Council is moving forward with a plan to raise the city’s occupancy tax on hotels, motels, and short-term rentals from 3% to 5%.

The Finance and Audit Committee voted unanimously on February 11 to recommend the increase, citing concerns that STRs have fueled gentrification and reduced housing options for long-term residents.

Majority Leader Michele Hirsch and Councilmember Michael Tierney argued that the higher tax would help offset the impact of STRs on the community. Hirsch emphasized that the extra revenue estimated at hundreds of thousands annually, could fund the city’s Right to Council program for tenants, which is losing federal support. Councilmember Marissa Marvelli echoed the view that STRs accelerate gentrification, making the higher tax a necessary step.

Mayor Steve Noble originally proposed a 3% tax in his 2026 budget, noting Kingston is one of the few local communities without such a levy. Neighboring towns already impose similar or higher rates, with Newburgh at 5%, Catskill and Coxsackie at 4%, and Poughkeepsie at 3%. Noble suggested the tax could support the city’s general fund, covering services like police, fire, parks, and infrastructure. He also argued it could help offset property tax hikes that have exceeded the state’s cap in recent years.

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“This short-term accommodation tax will assist City government in continuing to deliver all of the crucial services visitors and tourists depend on when they stay in Kingston,” said in a news release. 

Not everyone is convinced. Councilmembers Teryl Mickens and Sara Pasti suggested a 4% rate, citing concerns raised by STR operators. Some fear the tax could discourage tourism or burden small-scale hosts. But Tierney dismissed those worries, saying visitors won’t change vacation plans over a few dollars. “What we’re really talking about is like $15,” he said, calling it a fair price for enjoying Kingston’s amenities.

The proposal faces several hurdles. After a public hearing on March 2, the council will vote on March 3. If approved, the resolution must then pass through the state Assembly, Senate, and Governor’s office under a “home rule request.” Only then could Kingston begin collecting the tax.

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