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February 8, 2009

Clinton County sales tax way up

By JOE LoTEMPLIO

PLATTSBURGH — Despite the gloomy economy, sales-tax revenue for Clinton County was at an all-time high in 2008.

Figures for the year showed the county took in $32,960,106, about $3.2 million more than legislators projected.

"It's great that it keeps coming in because we are going to need it," County Treasurer Joseph Giroux said.

Although details from the state, which collects the sales tax, are not available, Giroux figures that big-ticket items, such as cars, home repairs and appliances, and Canadian traffic account for the high numbers.

The addition of Target, a major department store, at the end of the year also helped.

HIGHER TAX
Also, the county had increased the sales tax at the end of 2007 from 7⅔ percent to 8 percent.

"We had 8 percent for the entire year of 2008, and that accounted for a lot of what we got," Giroux said.

A portion of the sales-tax revenue, based on population, is distributed to the towns and villages in the county and the City of Plattsburgh.

The amount given to them in 2008 was $11,850,465, up from a projected $10,901,770.

"But we urge the towns not to count on a big surplus every year because you never know what can happen," said Legislator Robert Heins (R-Area 10, City of Plattsburgh), chairman of the county's Finance Committee.

The county budgeted sales-tax revenue of $32,100,000 for 2009, about $860,000 less than it took in for 2008.

In January, the county took in about $1.1 million, which is about $66,000 ahead of projections.

CAUTIOUS
Heins said the county took a more conservative approach to sales tax in 2009.

"With the way the economy is going and the Canadian dollar is not as strong as it was, you don't know what is going to happen.

"There have been a lot of layoffs in the private sector, and it is only a matter of time before it hits governments, but the sales tax has been a saving grace for us when the majority of counties in the state have seen a decrease the past two years."

BED TAX
In addition to collecting sales tax, the county also began to collect a 3-percent hotel occupancy tax in the final quarter of 2008.

Giroux said the county took in $97,485 in "bed tax" money for the year from 26 participants.

"We projected we would get between $300,000 and $350,000 for a full year, so to take in $97,000 in one quarter is not too bad."

While the Comfort Inn suffered a major fire that temporarily put it out of business, Giroux said, the addition of a Hampton Inn, scheduled to open in the spring, will help.

The bed-tax money will be used specifically for promoting popular fishing tournaments on Lake Champlain and other special events.

"What's nice about the bed tax is that it is not absorbed by local taxpayers," Heins said.

E-mail Joe LoTemplio at: jlotemplio@pressrepublican.com

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