Onondaga County hotels combine to owe nearly $2 million in unpaid occupancy taxes meant to go into the county’s coffers, leaders said Wednesday.
“This is not sloppy bookkeeping; it is an intentional act,” said Onondaga County Executive Ryan McMahon. “They are cheating the taxpayers.”
Officials said they identified 15 hotels that collectively owe $1.8 million, and two ownership groups that McMahon said are “seriously delinquent,” including one that owes about $800,000 alone.
McMahon estimated the county collects about $15 million in occupancy taxes annually.
McMahon accused the ownership groups are either putting the occupancy tax revenue back into their businesses or into their own pockets.
“Both of which are illegal, both civilly and legally,” he said.
McMahon said the county issued notices, imposed fines and filed liens against the properties, but the bills remain unpaid.
Those businesses now face potential legal action through the district attorney’s office.
First Chief Assistant District Attorney Joseph Coolican said involving the DA’s office is a last resort.
“This is theft. This is larceny,” Coolican said. “Hotels act as a passthrough to deliver those taxes to Onondaga County.”
People involved in the management of the hotels could personally face charges along with the business, said senior assistant district attorney Peter Hakes.
“We’ve identified some of these people living in extraordinary houses and we believe that is in part being subsidized by the taxpayers of Onondaga County,” Hakes said.