Legislature Looks to Extend Current Sales Tax Rate
Putnam County’s sales tax does not appear to be dropping any time soon, as the county legislature voted unanimously Wednesday to send a home rule request to Albany asking to extend the county’s 4-percent rate instead of letting it drop to 3 percent.
Assuming state lawmakers and Governor Cuomo approve the county’s request, as they have in the past, sales tax in the county will remain at its current rate through 2015.
“I feel it’s the most equitable way to raise these needed funds and not only to tax our residents but, mainly, to tax every resident that lives outside of Putnam County,” said Legislator Sam Oliverio in support of the resolution. “The sales tax that’s generated goes to the coffers of the county, which enables us to keep our property taxes very low, and we are fortunate to have been able to do that year after year.”
Including the state and MTA shares, sales tax in Putnam totals 8.375, a percentage point higher than Westchester’s and about 2 points higher than Connecticut’s rate. At a special full meeting at the county office building Wednesday, legislators acknowledged the higher rate’s detrimental effect on the county but said it couldn’t afford to revert to the lower rate, which would be projected to cost more than $10 million in revenues.
“I hope that someday we can sit here and not have to vote in favor of this 1-percent extension,” said Legislator Dini LoBue. “It puts us at a disadvantage to Connecticut.”
The county first raised its share from 3 percent to 3.5 percent in 2005, then to 4 percent in 2007. The rate hikes were at the time called “temporary” but now seem anything but.
“Our reliance on this sales tax seems almost like an addiction,” Oliverio acknowledged, saying he hoped to eventually phase it out. “You don’t go cold turkey, but maybe reduce it a little bit in the next few years.”
Not all legislators were eager to revert to the 3-percent rate. Legislator Carl Albano and Chairman Richie Othmer said they favor raising revenue through sales tax over property tax because everyone shares the burden, not just county residents or property owners.
“If the day should come that we have extra money that we don’t know what to do with,” Albano offered, “I would say that we should lower property taxes and continue with this [current sales tax rate].”
When the same home rule request was made in 2011, it passed 7-2 with then-legislators Tony Hay and Dan Birmingham, neither of whom are still on the legislature, voting against it.
