Chris Scanlon shares plans to increase property taxes, instill occupancy tax

BUFFALO, N.Y. (WIVB) — Acting Buffalo Mayor Chris Scanlon shared his plans to increase property taxes, instill an occupancy tax for hotels and called for more state funding on Tuesday at a joint budget hearing in Albany.

The increase is one way Scanlon is proposing to close the gap on the city’s $40 million budget shortfall.

Property taxes will increase, Scanlon said, although he did not provide any hard numbers or how soon the increase would be implemented.

“[We’re] woefully behind on our property tax and what we can bring in, so we’re going to address that through reasonable property tax increases in the future,” Scanlon told lawmakers on Tuesday.

Buffalo Common Council Member and Finance Chair Mitch Nowakowski said that after 15 years of property taxes not being raised, it has since caught up to the city and that the amount of revenue coming in does not match expenses.

Nowakowski said the council is expecting a budget with a raise in property tax and it’s now up to members to negotiate a final number.

“I think that that’s fair to say as council members because I think that politicians oftentimes recoil and they don’t want to talk about taxes, they don’t want to talk about revenues, but the fact is that we’re called upon to do municipal work and provide services like police, fire inspections and investments in our infrastructure, and that ultimately costs money and that money has to be derived from somewhere,” he said.

Scanlon plans for a three percent occupancy tax for hotels, which would paid by visitors, to be reinvested in tourism and cultural assets.

Other ways Scanlon said he’s taking action to raise revenue includes asking the city’s departments to cut 10 percent of their budget, something he said can save the city upwards of $30 million.

He also said that the needs of the city extend far beyond what Gov. Kathy Hochul has already included in her proposal, which includes funding for economic development, education, mental health and public safety.

Scanlon said the city wants the state’s Aid and Incentives for Municipalities (AIM) program to increase its funding. AIM provides revenues to the cities across the state and hasn’t increased since the 2011-2012 fiscal year.

He also discussed plans to create a Buffalo parking mobility authority, transferring the ownership of lots to be overseen by the new department.

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