New York Gov. E. George Pataki signed legislation July 31 requiring Cornell's Statler Hotel to collect sales tax on room rentals by persons not representing tax-exempt organizations.
The Statler has been adding the new sales tax to its room charges to non-exempt patrons since Aug. 1. Food and other services at the hotel have always been subject to sales taxes.
Cornell officials opposed as a matter of principle the legislation amending Section 1116 of the Tax Law, initiated at the urging of the Tompkins County Board of Representatives, said Henrik N. Dullea, vice president for university relations.
"The 30-year-old legislation that has been changed was specifically designed to further the educational missions of institutions like the Statler," Dullea said. "The operation of the Statler Hotel has been an essential element of the educational program offered by the School of Hotel Administration since 1952."
Because the Statler Hotel functions as a teaching facility, its layout, design and upkeep are more costly than those of lodging units in the private sector. Hotel staff, who share in teaching responsibilities, are compensated at a higher level than employees in private hotels, Dullea said.