We can afford a lesser sales tax
Reducing the County’s sales tax rate from 8% to 7 ¾% under my Resolution is a win-win proposal. Our residents get a tax break and our cities, towns and villages will be held harmless.
Starting in 1968, for over 30 years, Chautauqua County made do with a 7% sales tax.
For the last 10 years the County government has repeatedly asked the State Legislature to raise our sales tax to 8%. Some in Mayville now want to continue the 8% rate for the next 2 years.
It is time to give our residents a tax break and reduce the sales tax to 7 ¾ for at least 3 reasons.
First, there was a time in the 1980s and 1990s when Chautauqua County government was burdened by an ever-increasing local share of Medicaid. For 16 straight years, Republican County Executive Andrew Goodell and Democratic County Executive Mark Thomas annually reported on the uncontrolled hikes in the County’s share of Medicaid. (Towns, Villages and Cities have never shared in Medicaid costs). Medicaid, for example, pays for the vast majority of the nursing home patients in the County. The State, about 20 years ago now, effectively capped the local share of Medicaid.
Second, prior to the 2014 sale of the County Home in the Town of Dunkirk, the leadership in Mayville claimed that the County Home was costing County taxpayers about $3,000,000 a year. The County no longer has that annual loss.
Third, Chautauqua County is the only New York county surrounded on 2 sides by Pennsylvania where the sales tax is only 6%. A reduction in the County’s sales tax rate would strengthen retailing and the number of retailing jobs in our County.
The County’s approximately $40,000,000 slush fund (unappropriated fund balance) is largely the cumulative result of the local share of Medicaid being capped and the sale of the money-losing County Home. Under the County Legislature’s own policy we could be satisfied with a $15,000,000 slush fund.
The County can afford to sharpen its pencils and live with a 7 ¾% sales tax.
The average price of a new vehicle is now $40,000. Reducing the County’s sales tax to 7¾% saves the vehicle purchaser $100. Who can better use that $100, our residents or the treasury here in Mayville?
Lastly, a county similar to ours, Ontario County, makes do with a 7 ½% sales tax and yet has a full value property tax rate $1 less than ours.
It only takes 10 votes this evening out of 19 to give our residents and retail businesses a much deserved tax break.
Fred Larson is county legislator representing Jamestown.