KINGSTON – The Ulster County Legislature Tuesday night approved a new five-year sales tax sharing agreement between the county and City of Kingston. The plan was negotiated by City Executive Jen Metzger and Mayor Steven Noble, with concurrence by the legislature, holds Kingston’s share at 11.5 percent and increases the distribution to towns from three percent to 3.5 percent, the first increase since 2001.
The county government collects four percent on taxable purchases made in the county. Under the new agreement, effective on March 1, the county government share of the four percent would decrease from 85.5 percent, with 3.5 percent distributed among the county’s 20 towns based on assessed property powers.
“We’re provided towns with a straight increase of 3.5 percent so municipalities have more revenue they can count on in their budgeting process, representing the first such increase since 2001,” said Metzger. “The new agreement also allows the county to share additional revenue if we have a banner year in sales tax. At the same time, we were careful to ensure a prudent balance that benefits the towns while also addressing the fiscal uncertainty for the county created by massive federal cuts to Medicaid.”
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