KINGSTON, NY – Ulster County Executive Jen Metzger has announced that the County’s 23 Towns and Villages will receive a boost to their budgets this month, thanks to a provision of a 2021 sales tax-sharing agreement with the City of Kingston that allows for the County to share an additional 1% of gross sales tax revenues with municipalities if total sales tax collections exceed $128,561,331 for the tax year, provided the City agrees.
County Executive Metzger proposed to the County Legislature that the additional revenue be shared after getting preliminary approval from the Mayor, and the resolution was approved by a vote of 21 to 1 at the June session. The City of Kingston gave its formal blessing to the proposal in a resolution passed by the Common Council and signed by the Mayor this week. This is the third year in a row that an additional sales tax allocation has been shared with local governments. The amount each municipality receives is calculated consistent with regular distribution of sales tax revenue. This year, $1,702,037.96 in additional revenues will be shared with municipalities.
“Having previously served on the Town Board in Rosendale, I know how much every dollar means for local government budgets, and I’m very pleased we are in a position to share an additional portion of the sales tax revenue with our Towns and Villages again this year,” said County Executive Metzger.
“I’d like to thank County Executive Metzger, the Legislature, and Mayor Noble for sharing $1.7 million with municipalities. Increased costs have made budgeting a challenge and this extra money helps local boards continue to provide important services and keep tax increases as minimal as possible. The County’s support is invaluable,” said Rich Parete, Marbletown Supervisor and President of the Ulster County Association of Town Supervisors.
In the five-year tax-sharing agreement between the County and the City of Kingston, the City receives 11.5% of County sales tax collections, and Towns and Villages share 3%. The additional 1% allocated by the County for Towns and Villages does not affect the City’s revenues.