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November 6, 2009

Clinton County sales-tax revenue dropping

By JOE LoTEMPLIO

PLATTSBURGH — Sales-tax revenue for Clinton County has dropped sharply, but officials remain confident.

Sales-tax receipts went from $513,606 ahead of projections in September to just $2,169 ahead in October for a drop of more than half a million dollars.

County Treasurer Joseph Giroux said the figures for October are way off because receipts for cars sold under the federal Cash for Clunkers program have not come in yet.

"The cars were sold, but the dealers have not received their money from the federal government yet," Giroux explained.

When the federal funding does come in, the county is expected to get about $250,000 in sales-tax revenue, which will bolster the October amount.

The county budgeted to receive $32.1 million in sales-tax revenue for 2009, and Giroux said the county is still on pace to meet those projections, despite the low numbers in October.

"We won't have the $3 million cushion like we've had, but we should make our projections, and we will be happy to do that."

The county budgeted $29.9 million for 2008 and actually took in $32.8 million for the year.

Sales-tax figures have run well ahead of projections for the past 10 years or so.

But legislators, sensing a slowdown in the economy, budgeted less for 2009, and they will do the same for 2010, said County Administrator and Budget Officer Michael Zurlo.

"Traditionally, November and December are good months for sales tax, so we are confident we will meet projections for this year," Zurlo said.

Other factors for the drop in October could be lower gas prices, Giroux said, and fewer sales of big-ticket items.

"Things are not that great, and maybe more people are putting off buying four-wheelers and snowmobiles and things like that."

While sales-tax revenue appears to be dropping, the county's relatively new occupancy tax is growing.

The county took in about $150,000 for the last quarter, the best showing since the tax was implemented in late 2008.

"There are signs of a healthier economy," Zurlo said.

County Finance Committee Chairman Robert Heins (R-Area 10, City of Plattsburgh) said the county needs to keep an eye on sales-tax revenue but also needs to trim its budget.

The proposed plan for 2010 features a tax-levy increase of 2.6 percent.

"We will get that down to about 1 percent, and we've been able to do that without any layoffs or curtailing any services, but pretty soon we are going to have to look at non-mandated services," Heins said.

Legislators have until mid-December to finalize a budget for 2010.

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

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