Alternative to increase in County real property tax

In Onondaga County Executive Nick Pirro's message accompanying the proposed 2004 County budget, he alludes to mandated expenses imposed by New York State that require him to recommend to the legislature a raise of 9.5% in the real estate tax. It is estimated that this increase will bring in the $21 million needed to cover the State-mandated costs largely attributable to Medicaid, pensions, and legal representation for the indigent. If this budget is adopted, the owner of a house worth $100,000 will have $82 added to his or her tax bill.
Compelling reasons undoubtedly exist for raising revenue. However, in my view, there is an alternative which I believe will be somewhat less painful than real estate taxation and which can provide revenue not only to the County but to the City, the towns, and school districts as well.
The County currently imposes a 3% local sales tax which, when added to the 4 and 1/4 % state sales tax, totals 7and 1/4% in all. Onondaga is unique among the major upstate counties in limiting its sales tax to 3%. Erie, Monroe and Albany counties all impose a 4% local sales tax. In fact, 34 counties and New York City all have a sales tax above the 3% rate restriction. While increasing the local rate above the 3% limit requires the consent of the New York State legislature, approval is granted on a pro forma basis when requested by a county.
Such a 1% sales tax increase will raise about $65 million locally. Of this, about $26 million would go to the County, $16 million to the City, $19 million to the towns and approximately $4 million to the school districts. This would give the City a needed infusion of money to be spent largely on educational needs and crime prevention. The County could meet its shortfall and still have some money left over to be placed in reserve or to reduce rather than increase the real estate tax rate. The towns and school districts would have similar options. Last but hardly least, sales taxes are paid in part by non-residents of Onondaga County who use our highways and rely on other governmental services when they come here to visit our zoo, watch a ballgame, attend a cultural event or shop at one of our regional malls. The sales tax approach distributes the financial burden more fairly. It is worth a serious look.