CARMEL – A bipartisan effort has resulted in a sustainable revenue-sharing agreement between Putnam County and its six towns and three villages.
On Monday, County Executive Kevin Byrne signed the accord after Governor Kathy Hochul made it official.
Putnam has now been authorized to extend until November 30, 2027, a one percent increase in its portion of the sales tax — from three to four percent.
The rate was initially approved in 2007. Over the years, a series of extensions have maintained the rate with the most recent set to have expired on November 30.
Putnam shoppers will now continue to pay 8.375 percent in sales tax, with four percent going to the state, four percent to the county and 0.375 percent to the Metropolitan Transportation Authority for station maintenance at the county’s railroad stations in Brewster, Southeast and Patterson on the east and Cold Spring, Garrison and Manitou on the west.
Last spring, five of the nine members of the Putnam Legislature voted to reduce Putnam’s sales tax to 3.75 percent amid a $90 million surplus. Byrne vetoed the reduction and announced an agreement to share revenue with Putnam’s six towns and three villages if the four percent rate was extended.
Following lengthy and sometimes heated debate, the lawmakers endorsed the state legislation to maintain the four percent rate and send one-ninth of one percent of sales tax collections to each of Putnam’s six towns and three villages depending on population with each receiving a minimum of no less than $50,000.
Byrne said with a projected $83 million sales tax collection by year’s end, $2.34 million would be headed to the nine municipalities based on their populations.
The breakdown is as follows: “Carmel–$783,000; Kent–$301,000; Patterson–$269,000; Philipstown–$168,000; Putnam Valley–$274,000; Southeast–$363,000; Brewster–$58,000; Cold Spring–$50,000 and Nelsonville–$50,000.
“This law ensures that Putnam County can maintain its existing sales tax rate, competitive with all neighboring New York counties better enabling Putnam County to deliver another major property tax cut as well as continue its current sales tax cut through its exemption on clothing and footwear as part of next year’s budget,” Byrne said.
He noted the new law was “part of a historic agreement with our town and village officials that will allow us to directly support critical capital projects and reduce our reliance on property taxes. It’s a win for taxpayers and a strong step forward for a more affordable Putnam County. Simply put, this provides tax relief where it matters most.”
Soon-to-be-retiring Putnam Valley Supervisor Jacqueline Annabi thanked Byrne for “making this occur. Shopping local is critically important and now money will be returned to local municipalities with the new legislation.”
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