THE BUFFALO NEWS
Erie County comptroller targets four area hotels
By Matthew Spina
NEWS STAFF REPORTER
August 13, 2009, 6:53 AM
The Erie County comptroller said he would pursue a court judgment against the owners of four guest lodges that are frequently late in handing over the county bed taxes they collect.
“While it might be a difficult economic time, it is difficult for all,” Comptroller Mark C. Poloncarz said, “and there can be no excuse for a hotel operator that collects taxes from its guests but then does not remit those taxes, or even file a return with Erie County.”
He identified the establishments as Holiday Inn Express on Dingens Street in Cheektowaga; Best Western-Buffalo Airport on Genesee Street in Cheektowaga; Econo Lodge on Transit Road in Amherst; and La Quinta Inn on Transit Road in Lancaster.
Bhavani Hotels owns the first two hotels; Mataji Hotels owns the others. While the owners are separate entities, the comptroller’s office said there is overlap among the principals, and they share the same manager: Anil Kumar Dholakiya.
Poloncarz said his office sent several warning letters to get the money generated by the 5 percent “hotel occupancy tax” that the establishments collected during the third and fourth quarters of 2008, as well as the first quarter of 2009.
However, some $63,000 in bed taxes collected during the second quarter of 2009 remain past due, Poloncarz said.
Dholakiya said he will turn over the money within days — apparently before Poloncarz will be able to serve him with court papers.
“I do know my liabilities, and I am saying you don’t have to worry,” Dholakiya said. “I do know I cannot hide from my dues. I am saying just give us more time. We are doing our best to survive.”
Erie County in 2007 changed the law that protected the identities of bed tax scofflaws. Poloncarz says he now will disclose the hotels and motels that collect the tax from their guests and keep the money.
© 2009 The Buffalo News
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