Essex County to wait on tax hike

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August 26, 2008

By LOHR McKINSTRY The Press Republican Tue Aug 26, 2008, 02:50 PM EDT

ELIZABETHTOWN -- Essex County has postponed a vote on adding an extra one-half percent to its sales tax.

The county currently imposes a 3¾-percent sales tax, in addition to the state's 4 percent sales tax.

If the county added an extra half percent, consumers would pay 8¼ on purchases, the highest sales tax in the region.

County Attorney Daniel Manning III said the County Board of Supervisors would have to get approval from the State Department of Taxation and Finance to increase the sales tax by one-half percent.

He suggested the board wait until the regular meeting in September to discuss the issue further.

"If you wait until the full board you're not going to be missing a lot of time."

Home Rule legislation would also have to be passed in the State Legislature to grant the increase.

And a flow chart of expected revenue from the tax increase must also be produced, said Supervisor Roby Politi (R-North Elba).

"That's not going to be completed yet."

The additional tax could raise an extra $3 million a year based on present sales, according to Politi.

Politi has suggested that if the county raises the sales tax by one-half percent, a quarter should go to the county and a quarter to the towns and villages in the county, based on population and property assessments. That formula would give the town he represents, North Elba, the largest share.

A one-quarter percent extra tax for towns and villages was proposed two years ago by Supervisor Robert C. Dedrick (R-Ticonderoga), but no vote was ever taken.

Supervisor Thomas Scozzafava (R-Moriah) said he did research on whether there's even a need for the tax hike, and he said Supervisor George Canon (R-Newcomb) also has misgivings about a sales tax increase.

"I think it's premature to even be discussing an increase in the sales tax," Scozzafava said. "I think Mr. Canon was right when he said we keep piling hay on the wagon; it's time to be taking some off."

He said everyone has to pay sales tax at the same rate, regardless of income, which is not a fair process.

"It's regressive taxation."

Scozzafava said the county sales tax is still paid chiefly by constituents, not visitors, as some had suggested.

"We're sitting on a $20 million (county) fund balance because of the (current) sales tax. We're not in dire straits."

lmckinstry@pressrepublican.com