The city realized about $22,000 more than originally budgeted for hotel tax revenues in the $42-million municipal budget that was passed last month.
The city collected $58,000 in hotel tax revenue, about 61 percent more than the $36,000 originally planned in the 2009 budget, which ends June 30. Sixth Ward Councilman Samson Steinman confirmed the increase with the city administration during last month’s public hearing on the budget. He attributed the boost in revenue from about three months of operation by Hotel Indigo at SkyView, as well as the new Best Western on Paterson Street, off Routes 1&9.
The state imposes a 5-percent hotel tax and municipalities are allowed to impose an additional levy of their own of as much as 3 percent. The hotel tax was created during the McGreevey administration in 2003 and Rahway enacted the local tax effective Nov. 1, 2003.
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