A proposal for Jefferson County to follow the state's lead and exempt clothing from the local share of sales tax (3.75%) is ill advised policy.
While wanting to give a break to "working families" has its obvious appeal, the clothing exemption takes one product that different people buy in varying degrees and makes it exempt, while other essentials like gasoline are fully taxed.
The other reason is the geographic anomaly that Jefferson County enjoys and that is the proximity to Canadian shoppers...Many of those shoppers buy clothing and the exemption obviates much of the benefits of cross border trade we now enjoy.
The latest estimates for February continue to show sales tax performing at six to eight percent above projections. This is money that flows into the coffers of every municipality in the County due to a sales tax distribution agreement between the County and the City of Watertown.
The sales tax is providing a much broader base of funding local government than the property tax which is heavily skewed by assesment differences and huge use of exemptions....
The better course for the county (they control the issue) would either be lower the overall rate on all products, or give the money back in the form of significantly lower property taxes.
As you know I have proposed the City do just that in conjunction with our continued efforts to reduce the city's debt load by paying cash for smaller capital projects.
Exemptions create inherent inequities, although I realize that under the statutes that is the only product that can be made exempt.
Broader based tax relief is the way to go and our unique ability to gain from cross border activity should make us think twice about exempting people who don't even live here.
15 comments:
Your comments are spot on. In addition the same middle class that are struggling will now have to pay more in property taxes or rent. The sales tax being paid by out of town shoppers and residents of Fort Drum allows for a property tax savings to those middle class residents much greater then any benefit of sales tax exemption on clothes.
In addition the sales tax collected and distributed to local governments helps pay to maintain infrastructure use everyday by the out of town shoppers and Fort Drum residents.
If the county legislature allows this to happen they are pushing addition taxes on local residents. Not all local governments have over taxed there residents to the tune of a $42 million surplus.
I can't see property taxes slashed, possibly taking some of the tax off gasoline, If the county doesn't control spending then there's always the "gun to the head" of taxpayers threat of rising property taxes if sales tax falters. On a brighter note I did see the Sheriff's Dept picking up whatever new toy they have on Friday, towing it with the Behemoth truck that gets 2 gallons to the mile.
Lowering sales taxes in a tourist town or county is just plain stupid. Collecting taxes from folks that don't use services is manna from heaven for the localities.
ANON 10:00
"I can't see property taxes slashed,..." You're blinded by the light of local gov't hanging on to huge surpluses for a rainy day. We're in the middle of a rain squall, cut Property Taxes Now Mayor and show local gov't can be responsible to Middle and Working class families. Sales Taxes are a separate issue all together and there's no need to raise them now in any case.
MCM
But, you're not criticizing the state for their exemption coming up next month? Hmmm.
Hmmmm..I am critical of the state exemption for the same reasons, but that is a done deal and not under consideration.
Speaking of 2 gallons to the mile... Can someone explain the disparity between gas in Jefferson County and the gas that's 10~15 cents cheaper further south? Say in Syracuse, for instance.
Lower property taxes would be a good idea, however, I can't see that happening in the near future... The Chamber of Commerce is making sure of that!
So, Watertown is a tourist town? Because of all the stuff to do, right? I can't see how ya'll survive with all the theme parks, professional sport stadiums and wonderful concert venues just littering the vast neon city-scape!! But seriously, Canadians must really hard up to think that Watertown is 'all that!'
Just trolling along...
Jeff is correct on most of this. It makes no sense to throw away a tax that the person being taxed pays no attention to.
Don't they have the power to put a cap on gasoline tax? They did it before and then changed their minds. So clothing tax is not the only option for exemption...
The other big issue is that most clothes can be had far cheaper than $55, so this is really a luxury tax. If you spend more than $20 on jeans or a shirt you are buying a luxury instead of basics.
The liberals have gotten everyone fooled by redefining what "poor" means and crying because of wealth disparity.
I think giving a break on property taxes is a great idea! It's been on the backs of the property/homeowner for far too long!
11:33, you're probably miserable no matter where you are. There is more to the enjoyment of life than a corporate theme park or watching overpaid athletes playing kids games.
How about ya'll waddle back to where it's more exciting. I'm sure they miss you there!
Tourist town because of the state parks, recreation in the region, the sinking an value of the American dollar and the fact that JeffCo is the only shopping around for miles.
I think to level the playing field on Property taxes is to do away with all the exemptions that exsist, same with sales tax folks buy stuff and they say it's for the farm, or it's for this charity.
can any put together a story on medical benefits, what different municipalities employees pay in cluding schools, and hidden perks like free college at JCC?
Hey 7:18- in the time that you have used typing your mantra, you probably could have done it yourself! Why don't you just fade away.
Why do you work at JCC??????? Or have your kids been educated for FREE? TRUTH.
12:52...
State parks- can only be visited for six months out the year.
Recreation- Everybody loves to ski, snow-mobile @ neg 22 degrees!
SHOPPING!? Yeah! woohoo! Two super Walmarts, an indoor 'strip' mall, a Target, and an Olive Garden, really?! Canandian shopping must be absolutely horrible.
12:43 It's easy to be miserable in a place where you have to take supplemental vitamin D to counter the lack of sunlite for six months out of the year! Don't be mad because I've actually seen life outside of Jefferson County! Did you know that a house in Watertown, NY is almost 2x more expensive than homes in larger southern cities and states? Yea, I'm miserable, but just here. "Wal-martians" scare me!
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