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Columbia County is set to introduce a lodging tax on short-term rentals, marking the first time the county has implemented such a tax. The 4% tax, which will take effect in January, applies to all hotels, motels, and short-term rentals, such as Airbnb's in the county, excluding those in the city. The tax is expected to serve as an additional source of revenue for the county, which has seen a 1.7% decrease in sales tax collection in the third quarter of 2024 compared to the same period in 2023.
The tax is anticipated to raise an estimated $500,000 in 2025, according to the county’s budget. "The anticipation is that over time, it'll increase two times that," said Board of Supervisors Chairman Matt Murell. Columbia County currently has an estimated 1,539 active short-term rentals, according to data from software company Granicus. The county has contracted with Granicus to create a database of short-term rentals and to collect the taxes on behalf of the county for the short-term rentals, which would be charged as part of the rentals booking fee.
The Columbia County Board of Supervisors approved a resolution in May requesting the state Legislature to approve legislation allowing the county to enact the lodging tax. The legislation was signed by Governor Kathy Hochul on September 27. The lodging tax will help with offsetting the costs of services in the county, according to Columbia County Treasurer PJ Keeler reported HudsonValley360.