Section 11-2502. Imposition of tax

a. (1) On and after July first, nineteen
  hundred  seventy  until  and  including  August  thirty-first,  nineteen
  hundred  eighty,  there  is hereby imposed and there shall be paid a tax
  for every occupancy of each room in a hotel in the city of New  York  at
  the  rates set forth in, and determined in accordance with the following
  table:
 
  If the rent per day for the room is:                   The tax is:
  Less than $10                                          $.25 per day
  $10 or more, but less than $15                         .50 per day
  $15 or more, but less than $20                         .75 per day
  $20 or more                                            1.00 per day
 
    (2) On and after September first, nineteen hundred  eighty,  there  is
  hereby imposed and there shall be paid a tax for every occupancy of each
  room  in  a hotel in the city of New York at the rates set forth in, and
  determined in accordance with, the following table:
 
  If the rent per day for the room is:                   The tax is:
  $10 or more, but less than $20                         $.50 per day
  $20 or more, but less than $30                         $1.00 per day
  $30 or more, but less than $40                         $1.50 per day
  $40 or more                                            $2.00 per day
 
  Where a person occupies a room for less than a full day  and  pays  less
  than  the  rent  for  a full day, the tax shall nevertheless be the same
  amount as would be due had such person occupied the room for a full  day
  at the rent for a full day.
    (3)  In  addition  to  the  tax  imposed  by  paragraph  two  of  this
  subdivision, there is hereby imposed and there shall be paid a  tax  for
  every  occupancy  of each room in a hotel in the city of New York (A) at
  the rate of five percent of the rent or charge per  day  for  each  such
  room  up  to and including August thirty-first, nineteen hundred ninety,
  (B) at the rate of six percent of the rent or charge per  day  for  each
  such  room  on  and  after  September first, nineteen hundred ninety and
  before December first, nineteen hundred ninety-four, (C) at the rate  of
  five  percent  of  the  rent or charge per day for each such room on and
  after December first, nineteen  hundred  ninety-four  and  before  March
  first,  two  thousand  nine,  (D)  at the rate of five and seven-eighths
  percent of the rent or charge per day for each such room  on  and  after
  March  first,  two thousand nine and before December first, two thousand
  eleven, and (E) at the rate of five percent of the rent  or  charge  per
  day for each such room on and after December first, two thousand eleven.
    (4)  Where  the  occupancy  of a room is reserved, booked or otherwise
  arranged for by a room remarketer, the tax imposed by paragraph three of
  this subdivision shall be determined based on the rent received from the
  occupant by the  room  remarketer.  In  such  a  transaction,  the  room
  remarketer  shall  collect  from  the occupant and remit to the operator
  that portion of the tax that is determined based upon the net rent,  and
  the  operator  shall  pay such portion of the tax to the commissioner of
  finance. The room remarketer shall collect from the occupant and pay  to
  the  commissioner  of finance that portion of the tax that is determined
  based upon the additional rent.
    (5) Where the rent is paid or charged  or  billed,  or  falls  due  on
  either  a weekly, monthly or other term basis, the daily rent upon which
  the tax is determined shall be the result obtained by dividing the  rent
  for  such term by the number of days in such term. Where the rent is for
  more than one room, including but not limited to a suite of  rooms,  the

  daily  rent per room upon which tax is determined shall be calculated by
  multiplying the daily rent for the group of rooms  by  a  fraction,  the
  numerator of which shall be the daily rent for the particular room, or a
  similar  room,  when  such  room  is  rented  alone  with  similar  bath
  facilities, and the denominator of which shall be the total of the daily
  rent for the individual rooms in the group of rooms, or  similar  rooms,
  when  such  rooms  are rented alone with similar bath facilities. In any
  case in which it is not possible to determine the daily rent per room in
  the foregoing  manner,  the  commissioner  of  finance  shall  prescribe
  methods for making such determination.
    b. (1) No tax shall be imposed hereunder upon a permanent resident.
    (2)  For  purposes of this subdivision, an occupant who is eligible to
  request and  has  requested  a  lease  pursuant  to  the  provisions  of
  paragraph  two  of  subdivision  (a)  of  section  2522.5  of  the  rent
  stabilization regulations promulgated by the  division  of  housing  and
  community  renewal  of  the  state  of New York (title nine, subtitle S,
  chapter VIII of the official compilation of codes, rules and regulations
  of the state of New York), shall tentatively be accorded the  status  of
  permanent  resident as of the date of such request, notwithstanding that
  such  occupant  has  not  met  the  one  hundred  eighty-consecutive-day
  requirement  contained  in  subdivision eight of section 11-2501 of this
  chapter as of such date. In the case of such an occupant,  the  operator
  or  room  remarketer shall not collect the taxes imposed by this chapter
  for any day, commencing with the date such  lease  is  requested,  which
  falls within a period of continuous occupancy by such occupant of a room
  or  rooms  in  the  hotel. Provided, however, if such occupant ceases to
  occupy a room or rooms in the hotel  prior  to  the  completion  of  one
  hundred  eighty  consecutive  days of occupancy, any taxes not collected
  theretofore by reason of the provisions of this paragraph  shall  become
  immediately  due  and  payable on the date of cessation of occupancy and
  shall be  collected  by  the  operator  or  room  remarketer  from  such
  occupant. In the event, however, that the operator or room remarketer is
  unable  to  collect  such  taxes from the occupant, the operator or room
  remarketer shall  not  be  liable  to  the  city  for  such  taxes.  The
  provisions  of  this  paragraph  shall  apply  with  respect  to  leases
  requested on or after September first, nineteen hundred ninety.
    c. No tax shall be imposed hereunder upon any  organization  described
  in  subdivision  (a) of section eleven hundred sixteen of the tax law to
  the extent such organization is not subject to  the  tax  imposed  under
  subdivision (e) of section eleven hundred five of the tax law.
    d. (1) No tax shall be imposed hereunder upon any person occupying any
  room  or  rooms  in  a  hotel  solely  and  directly as a result of such
  person's involuntary displacement from premises by  the  attack  on  the
  World  Trade  Center  on  September eleventh, two thousand one, provided
  such premises were not subject to the tax imposed by this section or the
  tax imposed under section eleven hundred seven of the tax law.
    (2) Where  an  occupant  claims  exemption  from  the  tax  under  the
  provisions  of  paragraph  one  of  this  subdivision, the rent shall be
  deemed taxable hereunder unless the  operator  shall  receive  from  the
  occupant  claiming  such exemption a signed written statement describing
  the specific circumstances  providing  the  basis  for  such  claim  and
  containing  such  other  information  as the commissioner of finance may
  require. The operator shall retain such statement and provide it to  the
  commissioner of finance upon request.
    e.  Where  any  corporation,  or  association,  or trust, or community
  chest, fund  or  foundation,  organized  and  operated  exclusively  for
  religious, charitable, or educational purposes, or for the prevention of
  cruelty to children or animals, and no part of the net earnings of which

  inures  to  the  benefit of any private shareholder or individual and no
  substantial part of the activities of which is carrying  on  propaganda,
  or  otherwise  attempting  to  influence  legislation,  carries  on  its
  activities  in  furtherance  of  any  of  the  purposes for which it was
  organized, in premises in which, as part of said activities, it operates
  a hotel, occupancy  of  rooms  in  said  premises  and  rents  therefrom
  received  by such corporation or association shall not be subject to tax
  hereunder.  Nothing in this subdivision shall be deemed  to  include  an
  organization  operated for the primary purpose of carrying on a trade or
  business for profit, whether or not all of its profits  are  payable  to
  one or more organizations described in this subdivision.
    f. The tax to be collected shall be stated and charged separately from
  the  rent  and  shown separately on any record thereof, at the time when
  the occupancy is arranged or contracted for and  charged  for  and  upon
  every  evidence of occupancy or any bill or statement or charge made for
  said occupancy issued or delivered by the operator or room remarketer.
    (1) Where an occupant rents a room directly from an operator, the  tax
  shall  be  paid  by  the  occupant to the operator as trustee for and on
  account of the city, and the operator shall be liable for the collection
  of the tax on the rent and for the payment of the tax on the rent.
    (2) Where an occupant rents a room that has been reserved,  booked  or
  otherwise  arranged  for  by a room marketer, the tax to be collected on
  and the portion of the tax attributable to the rent, the  net  rent  and
  any  additional rent shall be stated separately on any bill or statement
  or charge made for said  occupancy  issued  or  delivered  by  the  room
  marketer  to  the  occupant.  Tax  on  the net rent shall be paid by the
  occupant to the room remarketer and paid by the room remarketer  to  the
  operator as a trustee for and on account of the city. The operator shall
  be  liable  for  the  collection  of the tax on the net rent and for the
  payment of the tax on the net rent. Tax on any additional  rent  charged
  to  the occupant by the room remarketer shall be paid by the occupant to
  the room remarketer as trustee for and on account of the city. The  room
  remarketer shall be liable for the collection of tax on the net rent and
  on  the  additional  rent and for the payment of the tax on the net rent
  and the  additional  rent,  provided,  however,  if  a  room  remarketer
  demonstrates  that  it  has  paid to the operator the portion of the tax
  based upon the net rent, the room remarketer  will  not  be  liable  for
  payment of such portion of the tax to the commissioner of finance.
    (3)  The  operator or room remarketer and any officer of any corporate
  operator or room remarketer shall be personally liable for  the  portion
  of the tax collected or required to be collected under this chapter, and
  the  operator shall have the same right in respect to collecting the tax
  from the occupant, or in  respect  to  nonpayment  of  the  tax  by  the
  occupant as if the tax were a part of the rent for the occupancy payable
  at the time such tax shall become due and owing, including all rights of
  eviction, dispossession, repossession and enforcement of any innkeeper's
  lien  that  he or she may have in the event of nonpayment of rent by the
  occupant; provided however, that the commissioner of  finance  shall  be
  joined as a party in any action or proceeding brought by the operator to
  collect or enforce collection of the tax.
    g.  Where  the  occupant  has  failed  to pay and the operator or room
  marketer has failed to collect a tax as imposed by this chapter, then in
  addition to all other rights, obligations and  remedies  provided,  such
  tax  shall  be  payable  by the occupant directly to the commissioner of
  finance, and it shall be the duty of  the  occupant  to  file  a  return
  thereof  with  the  commissioner  of  finance and to pay the tax imposed
  therein to the commissioner of finance within fifteen  days  after  such
  tax was due.

    h.  The  commissioner  of  finance  may,  wherever  he or she deems it
  necessary for  the  proper  enforcement  of  this  chapter,  provide  by
  regulation  that the occupant shall file returns and pay directly to the
  commissioner of finance the tax herein imposed, at such times as returns
  are  required  to be filed and payment over made by the operator or room
  remarketer.
    i. The tax imposed by this chapter shall be paid upon any occupancy on
  and after July first, nineteen hundred seventy, although such  occupancy
  is  had pursuant to a contract, lease or other arrangement made prior to
  such effective date. Where rent is paid, or charged or billed, or  falls
  due  on either a weekly, monthly, or other term basis, the rent so paid,
  charged, billed or falling due  shall  be  subject  to  the  tax  herein
  imposed  to  the  extent that it covers any portion of the period on and
  after July first, nineteen hundred  seventy,  and  such  payment,  bill,
  charge or rent due shall be apportioned on the basis of the ratio of the
  number  of  days falling within said period, to the total number of days
  covered thereby. Where any tax has been paid  hereunder  upon  any  rent
  which  has been ascertained to be worthless, the commissioner of finance
  may by regulation provide for credit and/or refund of the amount of such
  tax upon application therefor as provided in  section  11-2507  of  this
  chapter.
    j. For the purpose of the proper administration of this chapter and to
  prevent evasion of the tax hereby imposed, it shall be presumed that all
  rents  are  subject  to  tax  until the contrary is established, and the
  burden of proving that a rent for occupancy  is  not  taxable  hereunder
  shall  be upon the operator, the room remarketer, or the occupant. Where
  an occupant claims exemption  from  the  tax  under  the  provisions  of
  subdivision  c  of  this  section,  the  rent  shall  be  deemed taxable
  hereunder unless the operator or room remarketer shall receive from  the
  occupant  claiming  such  exemption  a  copy  of the exempt organization
  certificate that is necessary to obtain exemption from the  tax  imposed
  under  subdivision  (e)  of  section eleven hundred five of the tax law,
  together with a certificate duly executed by the organization  named  in
  such   certificate   certifying   that   the   occupant  is  its  agent,
  representative or employee and that his or her occupancy is paid  or  to
  be  paid  by,  and  is  necessary  or  required  in  the course of or in
  connection with the affairs of said organization.
    k. No operator or room remarketer shall advertise or hold out  to  the
  public  in  any  manner, directly or indirectly, that the tax imposed by
  this chapter is not considered as  a  mandatory  addition  to  the  rent
  charged to the occupant.