Essex Co. to ask state to OK sales tax hike

GEORGE EARL, For the News
ELIZABETHTOWN — The Essex County Board of Supervisors passed a resolution Tuesday to seek state approval for a half-percent county sales tax increase from 7.75 percent to 8.25 percent. If the state Legislature does approve it, supervisors will again have to vote if they are to officially adopt the increase, a process that would not be complete until well into next year.

Discussions on the proposed tax increase have been especially controversial given the poor economy and impending state budget cuts, causing a split among the supervisors: Some argued that the sales tax increase will help the county meet its financial obligations without raising property taxes, while others questioned the wisdom of raising taxes during a recession.

The resolution to authorize county Manager Dan Palmer to submit an Aug. 28 letter requesting the sales tax increase was brought forward by North Elba town Supervisor Roby Politi, who argued last month that the sales tax would harm locals less than a property tax increase. The plan has also drawn support because it would give half of the new revenue to the towns, about $1.5 million, based on their assessed property value and population.

St. Armand town Supervisor Joyce Morency said, “I’m in favor of the sales tax increase, and I think we should vote to get the process moving now.

“It’s going to help people more than it hurts. We may have a $20 million fund balance, but we may be mandated by the state for many extra costs.”

Palmer said the budget surplus is closer to $18 million and stressed the importance of designating any increased revenues for capital expenditures, like a new emergency radio tower that is expected to cost several million dollars.

“It should be tied to debt service, to assure that money goes toward projects and is not spent on other things,” Palmer said. “We have some big projects coming up.”

Ticonderoga town Supervisor Bob Dedrick said the county has to face several multi-million-dollar obligations.

“If we don’t face them, we are ostriches with our heads in the sand,” he said. “We need to be proactive. You won’t hear me apologize for asking for a quarter-percent to come back to the town. Every time a new entrepreneur comes in, it requires a lot of work ... and a lot of my time.”

Ticonderoga is projected to receive more than $40,000 from the county if the sales tax increase is adopted, in part due to larger stores like Wal-Mart.

Still, five supervisors called for pause and further consideration.

“I’d like to dispel a myth: that the sales tax doesn’t hurt our constituents,” Moriah town Supervisor Tom Scozzafava said. “The sales tax is a regressive tax. Don’t kid yourself; it is going to hurt lower-income families more than it will those with greater discretionary income.”

Scozzafava also pointed out that Dedrick’s hard work is compensated by the property taxes that businesses pay.

Westport town Supervisor Dan Connell said the suggestion that the sales tax is somehow less injurious to those with lower income than other forms of taxes, like property, is misguided.

“When you raise sales taxes, you are hitting lower-income people,” he said, explaining that those with less discretionary income will be facing tougher choices.

County attorney Dan Palmer said that regardless of people’s opinions on the tax increase, the decision to move forward for state approval is wise.

“After (supervisors) get a decision from the state,” he said, “you can do whatever you want with it.”

Contact George Earl at 891-2600 ext. 25 or gearl@

adirondack

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