Local sales-tax agreements good until Nov. 30
By KAYLEIGH KARUTIS, The Leader-HeraldA spokesman with the state Department of Taxation and Finance said Fulton and Montgomery counties will be able to continue collecting an additional 1 percent in sales tax until the legislation allowing it expires at the end of November.
The state Senate's inaction over the past few weeks has no effect on the legislation, which allows the two counties to collect 4 percent in sales tax revenue, instead of the baseline 3 percent collected by all counties, spokesman Tom Bergen said.
Bergen said the sales tax agreements in Fulton and Montgomery counties do not expire until Nov. 30 and were not part of the "time-sensitive" bills that expired at midnight today.
Fulton and Montgomery counties are two of more than 30 counties in the state that collect more than the 4 percent collected by the state and the initial 3 percent collected by the counties. Some counties collect half a percent more, while others collect 1 percent or 1.5 percent more, Bergen said.
Fulton County Administrative Officer Jon R. Stead said it is important the Senate renew the legislation before it expires. If the legislation is not passed, it will mean a loss of approximately $3 million in revenue, Stead said.
With state aid numbers already looking lower than last year, the extra 1 percent is integral to the county's budget, Stead said.
"It's absolutely critical [the Senate] figures out a way to deal with this," Stead said. "[The lack of action in the Senate] is discouraging and disappointing."
Stead said if the county is unable to collect the additional 1 percent, county officials will have to make "big changes" in the way the county does business. That could include possibly cutting services, he said.
"It would certainly have a very dramatic impact," he said.
In Montgomery County, the 1 percent accounts for about $6 million in revenue, town of Amsterdam Supervisor Thomas DiMezza said in the middle of June.
"If it doesn't get approved, it could mean big problems for the county," DiMezza said then. "Laying people off or raising taxes are the two options."
Bergen said the legislation will take, at minimum, about 30 days to go into effect after the Senate passes it because it must also be signed by Gov. David Paterson and must be passed by both counties.
"There is a process for this kind of stuff," he said. "It should be passed at least 30 days prior to the expiration."
Kayleigh Karutis can be reached at gloversville@leaderherald.com
