In another case, a hotel in Lake Placid collected the bed tax but kept it, then went out of business.

Supervisor Roby Politi (R-North Elba) said his area has the highest concentration of lodging in the county.

"It affects my town the most. The hotel owners there would be very concerned if they found out there were others in their midst who weren't paying."

The local law that imposed the bed tax might have to be tightened, Supervisor Robert C. Dedrick (R-Ticonderoga) said.

"I don't know if we can go out and randomly look at the books. We know there's some inconsistencies."

The law allows penalties of a $1,000 fine or a year in jail and gives the county the authority to inspect books, County Attorney Daniel Manning III said. He said the local law also mandates the information that's collected be kept secret.

Manning said he's looking over the local law and will report to the County Board of Supervisors so a hiring decision can be made.

lmckinstry@pressrepublican.com