Orange County to ask state for one-quarter percent sales tax increase

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GOSHEN – Every three years Orange County must ask the state for permission to increase its local sales tax by three-quarters of one percent. This year, though, county lawmakers are asking for a full one percent increase.

The additional funds would help offset the additional financial burden placed on the county by the state budget and would also mean more money from sales tax sharing for the three cities – Newburgh, Middletown, and Port Jervis.

Deputy County Executive Harry Porr told the Newburgh City Council Thursday night the additional one-quarter percent raised would translate to about $753,000 more for the city with minimal financial impact on its residents.  “We are of very good fortune here in Orange County because we have this thing called Woodbury Common and it is like an ATM machine, really, for sales tax collection,” he said. “Most of our sales taxes that we collect come from that complex. What is also good about the fact that the sales tax money comes from there is that most of the people who shop there are not from Orange County.”

Officials from all three Orange County cities have lent their support to the additional one-quarter percent increase, which would bring the county’s portion of the sales tax to four percent. The state also charges four percent and the MTA collects 0.375 percent sales tax in the county.




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