More than a dozen hotel owners and operators in Onondaga County are facing felony larceny charges if they don’t pay a combined $1.8 million in room occupancy taxes. County Executive Ryan McMahon has enlisted the district attorney’s office to prosecute not only the owners but also the managers, bookkeepers and others involved in failing to pay the taxes they collect from visitors. McMahon said they’re repeat offenders who are cheating Onondaga County taxpayers.
“You have two very large ownership groups that owe quite a bit of money. That’s intentional," McMahon said. "They getting notices, they understand it. People go and stay in the hotels. This isn't sloppy bookkeeping. This is an intentional act to take money that is not theirs and take that and put it elsewhere.”
McMahon said they’re either using it to finance hotel operations or enrich their own lifestyles. Tramz NY, LLC operates Candlewood Suites in East Syracuse, and owes the most back taxes in the amount of $563,000. Chief of the DA’s economic fraud bureau Peter Hakes said the charges escalated after the county’s finance department made numerous attempts seeking payment.
“This is no longer an ask. The money is due frankly, was due at the time that it was collected," Hakes said. "The message that's coming from the County Executive and from the District Attorney is it's now time to either immediately pay or accept the consequences which will be criminal in nature.”
Hakes said delinquent hotel operators received letters from the DA’s office in December. He said it appears Onondaga County is the only county to pursue criminal charges seeking room occupancy tax payments. The revenue funds county arts, culture, and entertainment programs.
