Saturday, December 28, 2024

Warren County 8/14 workshop on possible sales tax hike to 8%

The Warren County Board of Supervisors has scheduled a workshop meeting on Wednesday, Aug. 14, at 10 a.m. in the Board Room to discuss the possibility of raising the County sales tax from 7% to 8%.

The county said the meeting will also be live-streamed and recorded for later viewing on the County’s YouTube channel.

Discussion began at a meeting of the Finance and Budget committee last month, Committee Chair Frank Thomas of Stony Creek said during last Friday’s Board of Supervisors meeting, but committee members recommended instead to involve the entire board in the issue.

The meeting will involve discussion only, said the county. No action can be taken during a workshop meeting.

New York State legislative approval would be required if the County decides to seek a sales tax rate increase.

Warren County’s press release noted, “Warren County is one of three counties in New York that currently has a sales tax rate of 7% (4% imposed by NY State, 3% by the county),” lowest in the state.

The other two are Washington County which is also considering a raise, and Saratoga County, which separately told The Chronicle it is not.

“The board will discuss a proposal to raise the rate a maximum of 1% (or $.01 on $1 of taxable purchase) to serve as a mechanism to potentially lower the property tax burden and put more of the cost burden on visitors to the county to increase funding for infrastructure repairs and improvements,” said the county press release. “Warren County has been hit with unprecedented infrastructure repair costs in recent years because of damage from storms that came at a time of significant cost increases to asphalt, steel, concrete and other materials.

“The December 19, 2023 rain storm alone resulted in over $4 million in county highway repairs and $750,000 in repairs to the county-owned rail line, which Warren County is required by federal law to maintain in operational status.

“The county has also been saddled with millions in unbudgeted costs for SUNY Adirondack and public transportation in 2024 alone, which will recur going forward.”

Kevin Geraghty, Chair of the Warren County Board of Supervisors, was quoted, “No one wants to increase taxes, but given the infrastructure issues and increased costs that Warren County faces, we need to weigh the impacts of helping pay for these critical expenses with sales tax or property tax. Our analysis indicates a sales tax increase would enable Warren County to keep property taxes low and perhaps keep them level for several years. We feel a discussion needs to occur at this point in time.”

Warren County dept. chiefs told to cut 5% from 2025 budget

Frank Thomas, the Stony Creek Town Supervisor who chairs Warren County’s Finance and Budget Committee, told the Board of Supervisors:

“I have set a goal with the department heads of a 5% reduction in expense,” for each department going into budget setting for 2025.

“I understand this is not going to be an easy goal to achieve but I felt the goal had to be set. We’ll try to achieve it and see where we end up.” — Cathy DeDe

Opposes sales tax hike

Dear Mark,

There are two types of thinking when it comes to taxes. There are those who are government-centric and want to tax to maintain (and expand) government, and there are those who are “the people”-centric and believe that society is healthiest when taxed the least.

We are now entering a period where the overheated economy appears to be slowing down. The stock market is showing signs of serious worry, and the red-hot labor market is ever so slightly cooling.

Yet we find that Kevin Geraghty in the Post-Star is pushing to increase the sales tax to 8%. Yes, he promises to use what is left of the sales tax surplus to lower property taxes, but we all know what happens to property taxes over time.

The result of all of this is that we may end up with a huge tax increase and a problem that has resolved itself. The markets are an expression of the people voting with their wallets. It is what makes our society so nimble and problem-solving oriented. And the government is its opposite. It is lumbering, inefficient and numb to new events.

To put it another way, we need to think in small terms. We need to think of the middle class and the poor. Can they afford a regressive tax on goods and services, and an eventual rise in their property taxes?

What type of thinker are you?

— Jim Brock, Retired Supervisor

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