Added 1 Percent Sales Tax Approved To Fund County Jail

By: Shawn Magrath

NORWICH – The additional 1 percent sales tax that’s been in place in Chenango County since 2002 to finance the county jail was extended another two years by county officials this week, but not without dispute over what the extension means to taxpayers and the local economy.

The Chenango County Board of Supervisors on Monday called for the extension through resolution, brining the total sales tax in Chenango County to 8 percent. State tax law permits the county to tack on the additional 1 percent tax to the sale of tangible property and certain services, and on occupancy of hotel rooms and other amusement charges.

Since 2002, county officials have used the additional 1 percent sales tax to finance operations at the Chenango County Correctional Facility in Norwich – an $8 million a year operation. The remaining 7 percent of the sales tax is divvied between state and local governments, with 4 percent going to New York State, 1.5 percent to Chenango County, and 1.5 percent to the local municipality.

Extending the sales tax, however, sparks concern for local taxpayers, some board members argued; and it’s time the county look at other alternatives.

“It's a financial stressor,” said Norwich City Supervisor Robert Jeffrey who brought up the issue prior to a vote from the full board. “This (tax) is something that was only supposed to be temporary, but it’s continued on and on and on ... I think it hurts commerce in the city. I’m just not in favor of continuing it.”

Similar sentiments that state and local governments were “killing people with taxes” were echoed by Smyrna Supervisor Michael Khoury.

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“This is a taxation extension, but you’re basically continuing a tax we don’t have to put forward,” said Khoury, urging his colleagues to look for ways to trim the budget rather than implement additional taxes. “On the big picture, it’s a tax increase during a very weak recovery. We have a very slow recovery here in New York State, and taxes do nothing but kill jobs and cause manufacturers to leave ... There has got to be ways of looking at this budget and reorganizing it so that 1 percent isn’t necessary.”

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