By Dan Murphy
Westchester County Executive George Latimer has made a bold proposal that will have to be approved by state legislators in Albany over the next six weeks, and which would increase the county sales tax by 1 percent. Latimer said that in exchange for the sales tax increase, the county would not raise property taxes for the next two years.
The “Westchester County Property Taxpayers Protection Act” is designed to stabilize the county finances for 2020 and 2021 and keep property taxes at current levels by having the Latimer Administration submit two budgets, for fiscal years 2020 and 2021, that will not include any increase in the county property tax levy; provide local governments – the villages, towns, the cities of Peekskill and Rye, and 22 school districts – with an estimated aggregate of $42 million divided among them, to hold the line on local property taxes; make an annual allocation into the county reserve fund, intended to be untouched throughout the year, to grow the fund back toward $150 million (up from the current $70 million), which will help raise the bond rating back to AAA; and elimination of one-shot finance proposals and ending borrowing for any annual operating expenses
Latimer, who made the proposal on Facebook last weekend, pointed out that Westchester’s large cities (Yonkers, White Plains, New Rochelle and Mt. Vernon) would not have their sales tax increased because they already pay a rate of 8.36 percent – the rate that would go into effect for the rest of the county if approved. This is important because one of the arguments traditionally against a sales tax increase is that it negatively affects lower-income and poorer residents. Latimer pointed out that residents in Westchester’s four big cities already pay a higher rate of sales tax.
While Westchester has the highest property taxes in the United States, its current sales tax of 7.375 percent is one point lower than neighboring rates on Long Island, and in Rockland and Putnam counties.
Latimer also made some alarming but blunt comments about Westchester County’s current fiscal state of affairs. “If the proposal is included in the 2019 state budget as we have requested, the County Board of Legislators will then act on the proposals,” he said. “Westchester cannot meet its annual financial obligations in the years to come without steady new revenue. We will fall into state fiscal control, with bond rating dropping further. Anyone who tells you otherwise is simply not telling you the truth.
“Westchester cannot raise property taxes at any significant level – we have reached a saturation point, given school and local taxes, as well. In my first year, we kept our tax levy rate below neighboring counties such as Rockland and Putnam, but this level is unsustainable. We need non-property tax revenue to deliver our services.
“This plan is prudent and plausible and avoids us undertaking further draconian service cuts, massive layoffs and irresponsible one-shot sell off of assets. There will be much to talk about in the days to come. I will explain the plan in any forum.
“If you want honest talk from an official, here it is. I’m not here to pander to fear or partisanship, but rather to work together on all sides to stabilize our finances for the near term. I welcome the two-way dialogue,” concluded Latimer, who was applauded by most on Facebook for presenting his plan to the people of Westchester as quickly as possible and not trying to cram it into the state budget without a discussion.
No comment from county legislators in support of or opposition to the plan, or whether state legislators and the governor will approve in in Albany.
