ONONDAGA COUNTY LEGISLATURE RESCINDS RESIDENTIAL ENERGY SALES TAX EFFECTIVE JUNE 1, 2021
In June of 2020, Onondaga County was in the midst of a dramatic economic downturn brought on by the Coronavirus Pandemic and the lockdown and shutdown measures put in place by Governor Andrew Cuomo. Sales tax revenues were drying up quickly and the County Legislature was told to anticipate $20 million in cuts to state aid that was not planned for in the County budget. In light of the unprecedented circumstances, the Onondaga County Legislature moved to reinstate a temporary 4% sales tax on residential energy products.
In recent weeks, it has become clear that Onondaga County will receive $89 million in federal relief, and is expected to see a cut in State Aid of approximately $5 million. In light of this, the Republican Caucus of the Onondaga County Legislature is excited to have sponsored and adopted a resolution rescinding the residential energy sales tax.
“We are committed to living within our means and keeping the cost to our residents as low as possible,” commented Majority Leader Brian May. “Republican legislators took measures to roll back the energy tax as soon as we started gaining clarity on the County’s strong financial position at the end of 2020 and the likelihood of receiving federal stimulus.”
Legislature Chairman David Knapp added, “This legislation was expected to sunset in November of 2022, but with our recently updated financial outlook locally, it is imperative to move up the timetable and keep our promise to taxpayers that this was always a temporary solution.” The resolution passed with the unanimous support of the Republican Caucus today brings an end to sales tax on residential energy products effective June 1, 2021, the earliest allowed by New York State.
“We have budgeted for the anticipated $16 million revenue this would have brought in 2021, but we are hard at work finding those funds elsewhere thanks to stronger than anticipated revenue numbers to close 2020,” finished Chairman Knapp. “Our Republican caucus values our commitment to maintaining a low cost of living, delivering essential services for Onondaga County residents. It is in the best interest of everyone county-wide that we rescind this legislation immediately.”