Does Chemung County Charge Sales Tax On Services

Chemung County Executive Tom Santulli on Tuesday touted the success of a change in the style sales taxation dollars are distributed, merely not all municipal officials are happy with the results.

Santulli revealed a study from independent consultant Eye for Governmental Inquiry that showed the canton and its municipalities — with the exception of the City of Elmira — remain potent financially since the canton adapted the formula a few years agone to keep more of the revenue.

Big Flats Boondocks Supervisor Ed Fairbrother said the change prompted the town to recollect smarter about how it allocates taxation dollars and praised county officials for aid with shared services.

Simply Southport Town Supervisor David Sheen said his town, which has cut belongings taxes each year for the last for 14 years, volition likely accept to heighten taxes in the near hereafter to brand upwards for the loss of sales tax dollars.

"The next two years of reporting will tell the actual end consequence of this sales tax redistribution program," Sheen cautioned.

More:Study: Chemung County sales tax shift working, Elmira still sinking

Consumers who purchase taxable goods in Chemung Canton pay an eight per centum sales tax on those purchases.

Half of that coin goes to the state, and the other 4 percent comes back to the canton.

The county takes 1 percent correct off the top of that amount, and then shares the remaining three pct with its local governments.

Nether the old formula, the county kept 65.6 percent of that amount, and the other 34.3 percent was distributed to the municipalities based on population.

Under the new formula, the county retains 74.2 percent of the local share, with the remaining 26.6 percent divided amidst the City of Elmira and the canton's xi towns and 5 villages.

As one of the more than populous municipalities in the county, the Boondocks of Southport took ane of the biggest hits, with its share of the sales revenue enhancement pie dropping from 4.62 percent in 2014 to 3.08 percent in 2018.

And while the CGR report said most of the municipalities have good for you fund balances, Sheen said that probably won't terminal long.

"As I run into it, towns volition be looking for tax increases as their reserves dry up," he said. "Some towns, such every bit the Town of Southport, had a plan for reserves such as upgrades to buildings and infrastructures. These plans will not happen at a pace as they were intended to do.

"Again, every bit to the Town of Southport, we volition be looking to increment taxes in the adjacent year or two," Sheen said. "Nosotros accept controlled our expenses to a level that they demand to be. Other revenues have dried upwards, which is a direct correlation to the reduction in sales tax."

Other than the City of Elmira, which saw its share of sales revenue enhancement revenues drop from 12.33 per centum in 2014 to 9.05 per centum in 2018, the biggest loser in the sales revenue enhancement reshuffling was the Boondocks of Horseheads.

The boondocks saw its share of sales revenue enhancement dollars decrease from iv.84 percentage in 2014 to 3.two per centum in 2018.

In 2017, the Town of Horseheads imposed a property taxation on residents for the outset fourth dimension in more than thirty years.

More:Horseheads town levies kickoff property revenue enhancement in decades

Town Supervisor Michael Edwards couldn't exist reached for comment Wednesday, but at the time the new belongings tax was announced, Edwards blamed the movement on the sales tax redistribution.

The town expected to raise about $2 1000000 through property taxes in 2017 to brand up for the loss of sales taxation revenue.

The changes also meant some pain for the Town of Big Flats, just Fairbrother said with some careful budgeting and the canton's help with a variety of shared services, the boondocks has been able to adjust.

"Nosotros're working effectually it. It's something we have to live with," he said. "I recall what it's washed, if anything has come out about this, information technology is being responsible with denizen money. Nosotros've cut back personnel here, had to cut some of our programs, cut some park programs and reduced our expenses. Simply if we keep on that path now, we still do have a decent fund balance. Nosotros're working it through."

The Hamlet of Horseheads has likewise learned to practice without some things, merely that isn't necessarily a negative, said Mayor Louise McIntosh.

When the county started discussing irresolute the sales revenue enhancement formula, village officials were worried how they would cope, but the transition — while not comfortable — has been successful, McIntosh said.

"We have cutting spending substantially. The hamlet director has washed an fantabulous job equally have all the department heads and employees," she said. "We've changed a lot of things, things we should have thought nigh before, but until you cut your upkeep y'all don't think about. It has forced usa to all look at other options. We want to do what'due south best for all of our residents.

"It's going to go along to exist difficult, but in my opinion the (county) administration and Village of Horseheads are doing an fantabulous job of trying to find ways to share and trim expenses," McIntosh said. "We're trying to effigy out how to work together to make things better for all of us and work with the county as well, to see what opportunities have we missed. In that location are always opportunities."

Follow @SGJeffMurray on Twitter.

Related:Chemung County sales tax revenues jump in 2017

Online

• To view the full Heart for Governmental Research report, become to dropbox.com/s/h7pcdgphxae4d51/CGR%20REPORT.pdf?dl=0.

Does Chemung County Charge Sales Tax On Services,

Source: https://www.stargazette.com/story/news/2018/01/31/opinions-mixed-chemung-sales-tax-formula/1083581001/

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