Must hike sales tax, supervisors say

By Cathy DeDe, Chronicle Managing Editor

Despite strong opposition from public commenters, Warren County supervisors and their county administrator at the sales tax workshop meeting on Aug. 14 appeared to view it as inevitable they’ll raise the sales tax from 7% to 8%.

Some asked whether raising it from 7% to 7.5% would suffice. Some offered additional revenue-enhancing suggestions.

But most if not all of the Supervisors seemed to agree the county will run out of money without increased revenue, that mandated programs and the cost of basic services make it impossible to cut the budget significantly, and that the only alternative would be to raise property taxes, which was seen as far less palatable.

Ron Conover of Bolton and Budget Officer Frank Thomas of Stony Creek listed increased costs at the county.

Mr. Conover said, “No one likes raising this type of question. Who in the room wants to raise the cost of anything on anybody? Answer, no one. But that’s the reality in front of us.

“The fundamental question before us is, how are we going to pay for general municipal government going forward?”

County Administrator John Taflan said raising the sales tax to 8% is expected to generate about $25 million more.

Mr. Taflan said raising the property tax to generate $25 million would cost homeowners an average additional $423 annually.

“If we’re told to cut the budget, if we don’t pass a sales tax increase, or we don’t figure out how to increase property taxes to some reasonable level to fund our budget, some…services we will just have to cut,” Mr. Taflan said.

“I’ve gone through everyone’s budget, and I don’t know how we would cut any.”

Citing the DPW, for example, Mr. Taflan said, “We own 250 miles of roads. Tell us to cut one or two drivers? Tell me which roads we’re not going to plow, because that’s what it amounts to.”

Mr. Taflan said the county calculated that lowering the property tax rate to reflect the higher sales tax would save the average homeowner about $60 to $115 annually.

Mr. Taflan said some “30,000 of the 40,000 properties in the county are occupied year round by residents of this county,” in addition to 7,000 seasonal homes and 1,500 short term rentals, suggesting that locals would benefit from a property tax adjustment.

“A compromise” was suggested by Glens Falls Ward 5 Supervisor Ben Driscoll, and Queensbury At-Large Supervisors Mike Wild and Nate Etu, to limit any sales tax increase to 7.5% rather than 8%.

Mr. Wild asked, “Do we really need $25 million to help balance our budget?”

Mr. Etu said, “It really doesn’t seem like we should be overtaxing just because (people say), ‘Well, if you’re going to do it, go to 8%. You don’t want to go through the heartburn of having to do it again five years from now.’”

Queensbury At-Large Supervisor Brad Magowan asked what the County is doing to push against unfunded mandates at the state level. “Can we get some of our Albany representatives up here? That’s where we have to put pressure. The people need to talk to them.”

Ward 3 Glens Falls Supervisor Nancy Turner said a bill awaiting Governor Hochul’s signature creates a state registry of short term rental properties and allows the state and municipalities to collect sales tax on STRs.

“If my calculations are right,” Mrs. Turner said, “based on Occupancy Tax, we could be looking at possibly another $4 million a year on that.”

Workings of the sales tax: For all counties, New York State collects sales tax, keeps its 4% and returns to each county the remaining amount — in Warren County’s case, 3%.

That 3% is distributed, based on a set of local formulas approved by the state, to the County, the City of Glens Falls and the Towns and Lake George Village.

If the county raises its sales tax to 4%, revenue from that added 1%, or any new increase, would not be subject to the County’s current distribution formula.

Warren County Attorney Larry Elmen said the county could keep the whole $25 million, or decide to share that revenue with the City, Towns and Village under the current formula or a different one.

Board Chairman Kevin Geraghty of Warrensburg said the state must approve any increase the County requests above its current 3%. The earliest it could be implemented is January 2026, he said.

Warren, Washington and Saratoga Counties currently stand alone with the lowest sales tax in the state, all at 7%.

Washington County is considering a sales tax hike to 8% — which prompted the Warren County discussion.

Saratoga County said it does not intend raise its sales tax.

Mr. Taflan’s slide presentation is available on the county Website (warrencountyny.gov), as is the full recording of Wednesday’s approximately 90-minute meeting and public comments.

Next move re sales tax

Warren County Administrator John Taflan told The Chronicle that the county aims to hold public meetings to further discuss possibly raising the County’s sales tax from 7% to 8%.

He told Supervisors at the regular board meeting on Friday, Aug. 16, that he aims to set up a meeting with the seven car dealerships in the County who protested raising the tax.

John “JP” Garvey IV of Garvey Auto spoke at the Wednesday meeting on behalf of the dealers, and submitted a letter to Board members that he also provided to The Chronicle.

Chairman Henke: Washington Co. ‘not there yet’ on sales tax hike’

Chronicle staff writers Caroline Martindale and Ben Westcott report:

“I don’t think Washington County is as far along in the process as Warren County” as to possibly raising the sales tax by 1% from 7 to 8%, Bob Henke, the Argyle supervisor who chairs the County Board, told The Chronicle.

“We are still having discussions in committees and small groups. If we decide to do something, we will hold an open forum like Warren County did.”

Kingsbury Supervisor Dana Hogan calls a 1% hike a “terrible idea.”

“I think it’s a tone deaf attempt,” he said. “I see people every day that struggle to pay bills.” He said, “I think we can do a better job of cutting expenses as opposed to trying to raise revenue.”

Hartford Supervisor Scott Hahn, meanwhile, said he’s “on the fence.”

“We have budget shortfalls, but Washington County is taxed enough,” he told The Chronicle. “We’ve got to be one of the highest in the state. And it’s to the point where a lot of people’s taxes are more than their mortgage payment. It’s driving people out of the county, it’s driving people out of the state.”

Mr. Hahn said, “It all comes down to the fact that we don’t have any industry in this county. Business provides so much tax relief for residents, and we’re just kind of in a bad place. There’s places in Washington County where people can set up business, but businesses don’t want to be 30 minutes from the highway. They want to be able to get on and get off. It’s about profit margins — it’s nothing against our county. We just need to find our thing that will bring somebody here.”

Fort Ann Supervisor Sam Hall said he doesn’t know when a vote on the increase would happen, but noted a vote would have to occur in the county’s finance committee before the plan is voted on by the entire county board.

Citizen speakers: ‘No new taxes’

Chronicle Managing Editor Cathy DeDe writes: Several citizens spoke during “Privilege of the Floor” after Warren County’s sales tax workshop meeting Wednesday, Aug. 14.

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John Peter “JP” Garvey IV spoke on behalf of the Garvey Auto Group and six other dealerships in the county. See their letter on page 10-11.

David Lapell, a retired County employee in the Corrections Department, said, “You guys want to keep raising taxes, there’ll be more people sitting in these chairs come next election, and that won’t be you people.”

He cited the expected 15% National Grid rate increase, and complained, “Recently, this board voted to give $400,000 to that money pit of despair known as the Winter’s Dream after $3 million last year.”

Mr. Lapell called raising taxes, “mind boggling.” He said, “I’ll tell you what you do. You do whatever has to be done. You know what I have to do? We tighten our budgets, we cut spending, we find ways with our own budgets to pay for things.”

Mike Parwana, the former Queensbury Democratic Committee Chair and a 2023 candidate for the Board of Supervisors, said, “I’m a flaming liberal and I say an increase in taxes is a hard No.”

He said, “You are talking about taking away a competitive advantage…We do have a really strong positive in the fact that we have a lower sales tax rate than all but three, two other counties.

“We could take Occupancy Tax money and run a million-dollar advertising program, saying ‘Come to play, and stay another day. Shop Warren County!’”

Citing the Supervisors’ own salaries, Mr. Parwana suggested, “You could save a lot of the money from this organization by switching to a County Legislature. You could consider that, as a cost savings measure.”

Robin Larkin, also a 2023 candidate for the Board of Supervisors, said she previously lived on the border of Saratoga and Schenectady Counties, where residents would routinely travel to Saratoga for the lower sales tax.

“Where our sales tax income will come, whether it will go up or down, based on that — people can just run down to Wilton. They’re going to do it, absolutely.”

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