City and County hammer out new agreement to share local sales tax
The County and City have reached a new 40-year agreement to share the distribution of local sales tax, pending approvals by the NYS Comptroller's Office, the County Legislature and the City Council.
The agreement establishes a formula for sharing from 14 to 16 percent of local sales tax with the city.
The towns and villages in the county will be bound by the agreement but do not get a vote on the plan.
County Manager Jay Gsell said the other municipalities will receive a share calculated similar to the city's share but based on what they receive in 2018.
If approved, the new agreement takes effect Jan. 1.
Currently, the county collects a 4-percent sales tax. That would continue under this agreement. The state collects 4 percent, making the local sales tax 8 percent.
The Batavia City Council will be asked to vote on the new agreement at Monday's meeting. The Count Legislature will vote next Monday.
Gsell said he expects to hear by tomorrow if the attorneys in the Comptroller's Office will recommend approval to their boss, Tom DiNapoli. Gsell said if the attorneys recommend approval, DiNapoli will likely approve the agreement.
The City and County have been negotiating the new agreement for more than a year. A committee that included city and county staff leadership and elected officials from both bodies participated in the discussions.
While towns and villages don't get to participate directly in the agreement, the City and County need to work out a deal because, under state law, the City has the ability to levy its own sales tax.
As part of the agreement, the City agrees not to institute its own sales tax.