Glens Falls Chronicle Serving the Glens Falls/Lake George region; Warren, Washington and northern Saratoga counties since 1980
By Cathy DeDe, Chronicle Managing Editor
The Warren County Board of Supervisors was to discuss raising the County sales tax from 7% to 8% at a workshop meeting on Wednesday, Aug. 14 — after The Chronicle’s Tuesday deadline.
Prior to the meeting, The Chronicle asked board chair Kevin Geraghty of Warrensburg if he expects the sales tax to be on the Friday, Aug. 16, monthly board meeting agenda.
Mr. Geraghty said Monday, via email, “I don’t believe we will be ready to make any decisions.”
Quoting meeting materials released by the County on Tuesday morning, in advance of Wednesday’s workshop:
“The question before the board is, Should the Warren County Board of Supervisors submit a request to the New York State Legislature to increase the percentage of sales tax collected in Warren County to 4%? The resulting sales tax in Warren County would total 8% instead of the current 7%. This would be a home rule request.”
Predicts about $25 million ‘bump’
Expected figures if the sales tax increased to 8%: “We used the 2023 actual sales tax amount of $72,937,907, increased by a growth factor of 2% to arrive at an amount of $74,396,665” at the current 3% sales tax rate,” the county said.
“This amount was used to determine the value of a 1% increase. Amount of additional 1% increase $24,798,888.
“The entire amount may be kept by the County or distributed according to a formula that is determined by the Board of Supervisors.”
Other specs from the materials:
Warren County has $2.5 billion in taxable sales.
It says, “About 35% of sales tax is paid by visitors to the county.”
The largest sources of sales tax are, by percentage: Building materials (15%), automobile dealers and restaurants (14% each), gasoline stations (13%), accommodations and merchandise (10% each).
The County’s 2024 budget is $192,837,622.
Sales tax revenue accounts for 41% of that, property tax 26%. The remainder is federal and state aid, department income and “miscellaneous.”
The county says its sales tax income has grown about 5% per year since 2010; “the Consumer Price Index has increased about 3% over the same period.”
The County says its property tax collections have shown “average 2% growth” since 2012.
The County noted: “56.3% of the property tax levy is for New York State mandates” and “Culvert repair alone has increased 53% since 2020.”
Other budget costs including public works and essential services were outlined in the presentation as well.
The basics
New York State collects sales tax for all 64 counties and retains 4% in all cases.
For Warren County, the state distributes the additional 3% of collected sales tax as follows:
- In the City of Glens Falls, the City receives 1.5% and the County receives 1.5% (50-50 split).
- Outside the City, the County retains 1.5% and the remaining 1.5% is distributed to the towns and Lake George Village based on real property assessed value.
- Per a separate agreement, the County pays an additional 2% of its portion of the split with Glens Falls to the City for 10 years, November 2022 to February 2032.
Next steps, if Warren County Board decides to go for 8% sales tax
From the Workshop presentation posted in advance of the Warren County Board sales tax workshop planned on Wednesday, Aug. 14:
- Conduct two Town Halls (North County and Glens Falls/Queensbury) to discuss with residents and hear concerns.
- Bring Home Rule Request increasing sales tax to 4% (8% total) for vote at September Finance Committee.
- If passed by Finance, introduce Home Rule Request at October Board of Supervisors Meeting.
- Submit Request to our legislatures for introduction into the State Legislature in 2025. It will need to pass both the Assembly and the Senate.
- Once Bills are prepared, the Board of Supervisors will vote again on the Home Rule request sometime in 2025.
- If signed by the Governor, the sales tax increase will take effect in 2026.
— Cathy DeDe
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