OBSERVER Photo by Gregory Bacon The Chautauqua County Legislature is going to explore making changes to the sales tax revenue it collects, including sharing more of it with local municipalities.

MAYVILLE – Chautauqua County is going to explore sharing more of its sales tax revenue with local towns, villages and cities.

Chautauqua County’s sales tax rate is currently 8%. Every two years the county legislature must request the state Legislature give permission for the county’s sales tax to be higher than 7%. The most recent authorization is set to expire Dec. 1.

According to the state Department of Taxation and Finance, 42 of the 62 counties have an 8% sales tax rate. Of the 20 counties that do not have 8% sales tax, six are less than 8% and 14 are higher. Among those with higher rates are Erie County and Allegany County. No Western New York counties have a sales tax rate lower than 8%.

During Wednesday night’s Chautauqua County Legislature meeting, lawmakers were set to begin the process of requesting the additional 1% rate, something it has had since December, 2015.

Of the additional 1% the county collects in sales tax, 85% of those funds go to the county, while 15% go to the local municipalities. The exact amount varies by population.

During a committee meeting last week, Legislator Bob Scudder reported that in 2024, the additional 1% of sales tax generated $22,965,078. Of that amount, $3,444,762 went to towns, villages and cities.

On Wednesday before the vote was to take place requesting the additional 1% sales tax remain, Legislator Fred Larson, D-Jamestown, questioned if the 8% rate should stay, or if more should be given to local municipalities.

He noted how in the past, the county has had 7%, 7.5% and 7.75% sales tax rates.

Larson noted the county increased its sales tax rate when Medicaid rates were going up more significantly and the county was operating a nursing home, which it has since sold.

Today, he said, the county is in a much better place, as it has a $40 million slush fund, while many local municipalities are raising their own property taxes.

“They’re looking at a very difficult financial picture. Some of it may be their own fault, some of it may not. Be that as it may, we know that some of our municipalities are in deep financial trouble. Maybe the county could make due with 75% of the extra sales tax money and have the cities, towns and villages at 25%. Maybe it could be 50/50. Maybe 60/40,” he said.

He suggested referring the resolution back to the Audit and Control Committee for further review and recommendation.

Legislator Fred Johnson, R-Westfield, asked if the county has enough time to consider making changes, to which he was told it does.

In response, Johnson said he also supports referring the resolution back to the Audit and Control Committee.

Legislator Marcus Buchanan, D-Dunkirk, said he supports considering having more sales tax revenue go to towns, villages and cities. “If we could take the time and talk about this, it could probably work out nice and benefit everyone,” he said.

The legislature voted 11-7 to refer the resolution back to committee, with one person absent. Voting no were legislators Dalton Anthony of Frewsburg, Jamie Gustafson of Lakewood, Tom Harmon of Silver Creek, Travis Heiser of Clymer, Terry Niebel of Sheridan, John Penhollow of Stockton, and Lisa Vanstrom of West Ellicott, all Republicans.

The legislation to keep the sales tax rate above 7% is a multi-step process involving the state legislature and is expected to take several months before any final approval is issued.