Goshen, N.Y. – Orange County Executive Steven M. Neuhaus is supporting the efforts of the New York State Association Counties (NYSAC) for increased transparency of the collection and distribution of sales tax collected by New York State.
“This is an important step that will allow counties to better understand and budget projected revenues collected by the state,” Neuhaus said. “Historically, sales tax distribution has been something of a best guess and based on the assumption that we are receiving our fair share. This data will help us to identify growth segments of our economy and ensure that all entities are paying their fair share. I commend NYSAC and Executive Director Steve Acquario for undertaking this important project.”
According to Neuhaus, another benefit of the increased transparency in data that the County will receive is the ability to identify sales tax attributable to electronic shopping and mail-order purchases.
“There is a misconception that online purchases are not charged sales tax, but many purchases through sites such as Amazon do in fact include sales tax now,” Neuhaus said. “Although most of these online retailers are collecting and remitting sales tax now, the more detailed data will enable the County to identify any discrepancies or shortfalls in expected sales tax revenue.”
According to the State Department of Taxation, Orange County’s sales tax revenue rose by almost $14 million in 2017, an increase of more than five percent from 2016. It served as the largest gain among mid-Hudson counties. Orange County budgeted $265.4 million in sales tax for 2017, but generated $279.6 million. The County shares that revenue with its 42 towns, villages and cities.
“Tourism and economic development are creating jobs and growing the economy,” Neuhaus said. “More local spending generates more sales tax which helps our local governments. This has been key to the financial turnaround Orange County continues to make. Local officials can use these funds to reduce property taxes, encourage further economic vitality, and fund government services which might otherwise be negatively impacted.”
For more information, contact Justin Rodriguez, Assistant to the County Executive for Communications and Media Relations at 845.291.3255 or firstname.lastname@example.org.