POUGHKEEPSIE – The Poughkeepsie City School District has enacted a three percent utility tax that Superintendent Dr. Eric Rosser calls “An investment by the community into the school district.”
The school board, led by President Dr. Felicia Watson, passed the resolution at a board meeting last week. Dr. Watson declined to comment on the tax other than to say it was recommended by Dr. Rosser. Watson said that “By district policy, board members do not have unilateral authority to speak on behalf of the board,” as she explained why board members had not responded to requests for comment. Additionally, Watson said that the board does not comment on day to day operations of the school district.
The tax will be collected by Central Hudson Gas & Electric, submitted to the state Department of Taxation and Finance and then returned to the school district. The funds will be applied to the district’s general fund.
According to the documentation provided by the district, their tax base is very low and the district needs additional revenue. The information says the new tax needed “for generating revenue that is necessary to sustain quality instructional programs for our children.” The district claims that new tax “is beneficial because it is shared equally among all taxpayers, unlike the disproportionate property tax.”
In the Hudson Valley, a similar tax is collected for the Hudson School District in Columbia County, Middletown, Newburgh, and Port Jervis school districts in Orange County, and the Mount Vernon, New Rochelle, Peekskill, Rye, White Plains, and Yonkers districts in Westchester.
The tax will apply to the sale of gas, electricity, refrigeration, and steam related services, according to the legislation. Under state law, the tax also applies to telephone services.
Dutchess County Legislator Randy Johnson, a former school board member, was “disappointed” by the board’s vote. “A small school district like Poughkeepsie must be extra vigilant in managing our precious, scarce tax base drawn from already overburdened residents.” Johnson indicated that the district should resort to “belt-tightening” before tax increases are used.
