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An audit conducted by Ulster County Comptroller March Gallagher's office uncovered $251,756 in unpaid occupancy taxes, penalties, and interest from hospitality businesses in the county. The audit, requested by County Executive Jen Metzger, reviewed records from December 1, 2022, to May 31, 2024.
The audit identified issues with tax filings, including failure to file, inaccurate filings, misapplied exemption rates, and missing documentation. Additionally, it highlighted gaps in the administration of the tax, which Gallagher believes can be addressed through software modernization. She stated, "We really think a modernization of the software used to track and allow taxpayers to file electronically would be really helpful."
In 2024, the county legislature doubled the occupancy tax rate from two percent to four percent, allocating 25 percent of the revenue to housing and another 25 percent to transportation. A significant portion of the $251,000 in outstanding funds has already been recovered.
Gallagher emphasized the importance of these funds, especially in light of federal funding cuts. The audit found that the errors were not intentional but were due to human error, which should be addressed to prevent future issues.
The county's efforts to recover these funds come as part of a broader initiative to ensure financial accountability and support local infrastructure projects.