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County committee rejects giving more sales tax money to municipalities

A Chautauqua County Legislative committee is going on record opposing giving more sales revenue to towns, cities and villages in the county.

A final decision is expected next week.

During the legislature’s Audit and Control Committee meeting Thursday, Republican Legislators Bob Scudder of Fredonia, Dan Pavlock of Ellington, Tamara Dickey of Jamestown, and Fred Johnson of Westfield all voted for the county to keep the county’s sales tax rate at 8% and not increase any funding to other local municipalities. Democratic Legislator Tom Nelson of Jamestown voted no.

New York state’s sales tax rate is 7%. Of that amount, in upstate New York 4% goes to the state and 3% goes to counties. Counties may request to increase that sales tax rate, which Chautauqua County has done so since 2016, asking for an additional 1%.

During the committee meeting, County Executive PJ Wendel noted that of the 3% collected, half of that amount goes to the county and the remaining half goes to towns, villages and cities. Of the additional 1% that the county collects, 85% of that amount goes to the county and 15% goes to the local municipalities.

Last month the county legislature reviewed a request to keep its sales tax rate at 8%. At that meeting, Legislator Fred Larson, D-Jamestown, argued that the county should consider giving more revenue to towns, villages and cities, since so many of them are facing budget challenges and property tax hikes.

The biggest example by far is the city of Dunkirk, which is increasing its property tax rate by 84%. Fredonia, as well, has talked about a need to increase the tax rate substantially, with a starting point of 68%.

Because of the increase in budgets to local municipalities, in February the legislature referred the resolution to keep the sales tax rate at 8% back to the Audit and Control Committee, which oversees all finances in the county.

Thursday’s discussion was led by Wendel, who, because he is the county executive, is not a voting member of the committee.

Pavlock said if the committee wants, it could always increase its local share to municipalities later, but instead wanted to discuss if the committee wants to keep the sales tax rate at 8%.

Retired County Attorney Stephen Abdella, who was also part of the discussion, said because the committee is requesting permission from the state, any changes in the formula to how much is given to local municipalities, would be best decided before the state legislature reviews the request.

He also recommended the county legislature decide everything in March due to the state legislature needing enough time to process the request before they break for the summer.

Wendel noted that the vast majority of counties in the state have an 8% sales tax rate or higher.

He continued, noting that of the 62 taxing entities statewide, 21 do not share any sales tax revenue with towns, villages or cities, which Chautauqua County does.

Wendel also discussed the history of sales tax in Chautauqua County, noting that in 2005 it was at 8.5% and that included clothing, which it doesn’t today.

Wendel noted that in the past 25 years, the county has taken over the maintenance of all culverts and bridges, excluding those that are handled by the state.

He also noted that for cities, the county covers any property tax that is owed.

“We know that in the city of Dunkirk, they’re having a significant property tax. That rate is increasing if people don’t pay their property taxes. That falls on the county. We make the cities whole,” Wendel said.

During the discussion, Scudder was critical of discussing changes to the sales tax now.

“If this is such a high priority, we should have been talking about this last month in our committee meetings,” he said, calling the comments made last month “political.”

Nelson said as a Jamestown resident, he wants to see more given to cities, arguing that it’s important cities stay fiscally strong.

Legislator Chairman Pierre Chagnon, R-Ellery, expressed concerns about the county’s budget being impacted by federal cuts.

“I would point out that the 2025 budget includes $38 million of federal aid,” he said.

The money is used for Social Services, Mental Hygiene, the county Health Department and the Sheriff’s Office.

“If we were to lose that $38 million in federal aid, it would more than consume all of the 1% sales tax revenue,” Chagnon said.

Even though the Audit and Control Committee voted against increasing sales tax revenue the full county legislature must vote on it Wednesday.

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