Referred to: The Ways and Means Committee (Chairman Gavaris and Legislators Collins, Hansut, Kovacs, Nolan, and Roberts)

Chairman of the Ways and Means Committee, John Gavaris, and Deputy Chair Kevin A. Roberts offer the following:

WHEREAS, this resolution has been submitted at the request of the County Executive on behalf of the Department of Finance; and 

             WHEREAS, Articles 28 and 29 of the Tax Law of the State of New York authorize municipalities to impose certain taxes on retail sales and other similar transactions and compensating use and taxes; and

            WHEREAS, there is currently a sales tax agreement pertaining to sales tax distribution between Ulster County and the City of Kingston with an effective date of March 1, 2021, and which expires on February 28, 2026; and

            WHEREAS, as part of said agreement, both parties agreed that should the Gross Sales Tax collected by the County of Ulster during a tax year exceed the high water mark of $128,561,331, the County of Ulster and the City of Kingston would meet no later than May 1 of following year to discuss the allocation of the amount in excess of $128,561,331; and 

            WHEREAS, during the 2023 Fiscal Year, the County of Ulster collected in excess of $128,561,331 in gross sales tax receipts; and

            WHEREAS, pursuant to the sales tax distribution agreement, the County of Ulster and the City of Kingston were required to meet to discuss the distribution of the excess; and

            WHEREAS, the County of Ulster and the City of Kingston have met and agreed upon a distribution of the amount in excess of $128,561,331; now, therefore be it

            RESOLVED, pursuant to section 4 of the Sales Tax Distribution Agreement between the County of Ulster and the City of Kingston, the Ulster County Legislature hereby agrees that, in fiscal year 2023 , an additional 1% of the gross sales tax collected shall be allocated, to the area of the County outside of the City, to be distributed among the Towns therein, based upon full valuation; and, be it further

RESOLVED, that the City of Kingston shall continue to receive 11.5% of such gross sales tax collections as provided for in the Sales Tax Distribution Agreement; and, be it further

            RESOLVED, that in accordance with Section 1262(c) of New York State Tax Law, the Ulster County Commissioner of Finance shall allocate and disburse to the towns within Ulster County their proportionate share of sales tax collected in fiscal year 2023; and, be it further

            RESOLVED, that after approval of the City of Kingston Common Council of said increase to the Towns, the Ulster County Commissioner of Finance is hereby authorized to disperse to the Towns an additional 1% gross sales tax collected in Fiscal Year 2023, in the next available quarter of 2024; and, be it further

            RESOLVED, that the 2024 Ulster County Operating Budget is hereby amended as follows:

                                                            INCREASE                                       AMOUNT

AA.1985.1325-4920.4925              Distribution Sales Tax Towns        $1,702,038.00

(App.#)

AA.9900.9900-3700.9993              Appropriated Fund Balance            $1,702,038.00

(Rev.#),

and move its adoption.

ADOPTED BY THE FOLLOWING VOTE:

AYES:                    NOES:      

Passed Committee: Ways and Means on ________________.

FINANCIAL IMPACT:

$1,702,038.00-COUNTY 2024 SALES TAX REVENUE DECREASE

$1,702,038.00-TOWNS 2024 SALES TAX REVENUE INCREASE