Every 10 years, the Onondaga County Legislature votes on how to distribute sales tax. This year, it could get contentious because every community is hurting financially. There's a lot of money at stake, in 2009 the county collected about $290 million.
When you go to the store and buy something in Onondaga County, you pay 8 percent sales tax. Half that money goes to the state, the other half goes to the county. The county shares its money with municipalities. Right now, the formula of how that money is distributed is being evaluated.
"Right now, Onondaga County is third of the 62 counties in New York State in terms of its generosity," says Onondaga County Executive Joanie Mahoney. "The climate is different and I think the sales tax sharing formula has been part of the problem in the last couple of years. It has to be re-looked at."
Mahoney says the county is facing a budget deficit of $50 million. Sales tax revenue is down in the county because people have been buying less. But under the current formula, the county still gives the same money to municipalities, even as it takes in less. In 2009, that resulted in a payment of $7.5 million. The city of Syracuse is the biggest recipient. The money is used to support all city departments including police and DPW. Director of Administration, Ken Mokrzycki, says the money is really important, especially since the city is facing its own budget shortfall.
Mokrzycki says, "Unless there are other revenue sources, either cuts have to be made, or property taxes have to be increased, that's the revenue under our control, no decisions have been made, we don't know what the numbers are but those are broadly what are options are."
This week, the county legislature appointed a committee to make recommendations about the sales tax sharing formula. A series of meetings will be held before it is voted on.
County Legislator, Tom Buckel, says he doesn’t believe the county can continue to be as generous as it has been because the county has to protect its property tax rate. Buckel said of the formula, “The likelihood is, it’s going to change because the financial pressure on the county is very severe.”
