TROY — City officials say $250,000 in new revenue from the hotel bed tax will be used to promote tourism and attract new business investment.

The state Legislature approved the 4 percent tax last month; the bill awaits the signature of Gov. Andrew M. Cuomo to take effect.

Mayor Patrick Madden said his administration plans to apply the projected funds to sell the city to outsiders.

“We don’t have the resources to promote Troy as a destination to visitors or as a destination to have your business move here,” Madden said.

He said Troy was “a growing destination for tourists, film productions and industry conferences" that was "strongly positioned to collect new revenues to support our ongoing economic renaissance."

The bed tax, officials noted, provides revenue that can be used to build the city's financial base and hopefully ease the burden for property taxpayers.

The bill was co-sponsored by state Sen. Neil Breslin, D-Bethlehem, and Assemblyman John T. McDonald III, D-Cohoes, whose districts include the city.

“It’s going to help the city draw more people to enjoy Troy,” McDonald said.

Madden said the city will work on creating a plan to apply the new revenue.