KINGSTON – The new sales tax sharing agreement hammered out between
Ulster County Executive Michael Hein and Kingston City Mayor Steven Noble
keeps the formula at the same level as the expired agreement with the
city receiving 11.5 percent of the income and the towns receiving three
percent.
The five-year agreement also includes sharing of services.
The sales tax plan would have the county receiving sales tax growth from
Kingston’s portion of sales tax receipts to help offset county expenses.
That would be accomplished through a city sales tax “growth freeze.”
The total value for the growth section is estimated at $750,000 over the
term of the agreement.
In the event that the county’s authority to levy the existing one
percent sales tax exemption is not approved by the state legislature,
the city and towns will share that impact with the county in a 40/60 split.
The agreement also calls for a single, unified county-wide bus system
within 24 months; would have the city assume basic maintenance responsibilities
including snow removal, mowing and trash pick-up for the county trail
that will run from Cornell Street to Washington Avenue; and would move
the county’s vehicle impound lot from the site of the old county
jail to property adjacent to the current law enforcement center. That
would clear the way for the county to market the old jail site for sale
and place it on the tax rolls.
Hein said the agreed upon plan “takes valuable steps that will lead
to cost savings for taxpayers, and improved services for our mutual constituents
as well as all Ulster County residents.”
Noble said the agreement “provides the stability we need to maintain
our essential services and the partnerships we need to do even more.
The agreement is subject to final approval by the state comptroller’s
office, the county legislature and the city’s common council.
