CANTON St. Lawrence Countys struggles for an increase in its sales tax could wrap up soon with passage of a state budget or continue for a while on a separate path.
The budget could be a viable way for passage if it includes extenders for counties which require periodic sales tax renewals along with parity for those not at the same level as others, state Sen. Joseph A. Griffo, R-Utica, said.
I support it in philosophy so long as there are conditions, he said.
Those could include a return for state Legislature approval if an individual countys formula for sharing the revenue changed and that counties develop a best practices plan to live within the states 2 percent tax cap, Mr. Griffo said.
The Senate is definitely pushing this. The executive appears OK with this, he said. The Assembly has been reluctant.
Assemblywoman Addie J. Russell, D-Theresa, accused the Senate of overkill and of not offering a straight-forward answer to St. Lawrence Countys sales tax request.
Its a much bigger bill than we need, she said. We shouldnt be changing these processes without a whole lot of thought and consideration.
Mrs. Russell has sponsored home rule legislation for the county in the Assembly and believes she could find partners in the Senate this year to have the legislation passed.
The Senates plan to hide sales tax increases in the budget and remove the states oversight role is dangerous policy and not in the interests of taxpayers due to the reduced transparency and accountability, she said in a statement.
If sales tax parity is not part of the budget, then is the time to consider another path, such as home rule, Mr. Griffo said.
St. Lawrence County wants to increase its local sales tax from 3 to 4 percent, bringing the total with the states 4 percent to 8 percent. A five-year plan developed by the county demonstrates how it would lower property taxes in the first year 14.3 percent and hold the annual increase in the out years to 2 percent.
Included in the plan was a 10 percent distribution of the additional sales tax to towns and villages, some of which were unhappy because their current allotment is greater. The present distribution is for the county to keep half of what it collects and give the rest to towns and villages after the city of Ogdensburg takes a cut of 6.4 percent.
The countys plan to reduce property taxes is not binding, but it is the intent of the Board of Legislators to make it work, Legislator Frederick S. Morrill, D-DeKalb Junction, said.
If Im there, Im going to do whatever I can to follow this plan, he said. I think the very best thing to do is return it to the taxpayers. Im quite satisfied with the plan because we did a lot of due diligence. I dont think anybody loses. Every property taxpayer gains.
State senators urged a united front with the towns and villages, which is coalescing, although it may not be unanimous.
Some county legislators have gone on the offensive trying to convince towns and villages to sign on to the five-year plan.
Legislator Joseph R. Lightfoot, R-Ogdensburg, developed a spreadsheet that shows the difference between a 1 percent increase under the current distribution formula and what each municipality would receive under the 10 percent split. Mr. Lightfoots figures also include the savings to taxpayers, the total return to towns and property taxpayers, and the difference between them.
Overall, only the villages and property taxpayers of Canton, Rensselaer Falls, Richville, Hermon, Norwood, and Potsdam would see an overall reduction under the 10 percent split compared to the current distribution formula. However, property owners in all communities benefit from the 10 percent distribution, Mr. Lightfoot said.
Granted, the towns receive less but youre putting money in the taxpayers pocket, he said. Theyre going to save a heck of a lot more money than if the towns kept it all.
Many towns have healthy fund balances and have not developed the same kind of plan the county has to use the additional revenue to cut property taxes, he said.
After a conversation with Mr. Griffo, Potsdam Mayor Steven W. Yurgatis one of the representatives that tried to convince county legislators to increase the 10 percent municipal contribution changed course.
Its been a good fight, but I think it is now time to recognize that we are very unlikely to get a change in the countys sales tax distribution proposal. I believe we must accept that we will not be getting what we wanted, and to be good partners with the county and help them get what they need, Mr. Yurgatis wrote in an email he sent to town and village leaders. The county has made a strong case that their financial problems are so dire that it would be impossible to change the sales tax sharing scheme beyond what they have proposed. They have also offered a five-year plan that takes the additional sales tax revenue and returns it as property tax relief for county citizens.
Mr. Griffo said he made a strong suggestion to county leaders to find consensus with the towns and villages but it was not a requirement.
I told the mayor, its not going to stop it because theres a number of towns that want it and a number that dont, he said.
Some towns and villages have formally lined up behind the countys five-year plan, including DeKalb, Edwards, Hermon, Heuvelton, town of Gouverneur, Louisville, Macomb, Pierrepont, Russell, Stockholm, and town of Waddington.
Russell Supervisor Robert C. Best Jr. said the countys plan to use sales tax to reduce property taxes while giving a 10 percent nod to towns and villages was an improvement over last years proposal to redirect sales tax from municipalities to the county.
We were worried the county would have to take a third of our sales tax, he said. I thought this was a win-win. The county listened to us.
Supervisors and mayors will meet at 7 p.m. Tuesday in the Potsdam Civic Center.
M. James Dawson Jr., president of the county Supervisors Association, did not have a running tally of where town and village boards stood on the 10 percent distribution plan.
Its all over the place, he said. I just tried to make this a fairness issue.
Johnson Newspapers writer Sean Ewart contributed to this report.