Sales Tax Hike is an Unfortunate Necessity

by: Bill Liblick

Unfortunately there are times we have to face reality and bite the bullet. Look, no one wants to pay more in taxes, but for now that may be the only rational solution for Sullivan County to get out of its budget fiasco.

The debate has been going on for over a year now whether Sullivan County shoppers should be forced to pay a 5 percent sales tax increase. The measure if approved by the New York State Legislature will increase our county coffers by a sizable amount, and help to pay for several worthwhile projects in the county. Our sales tax rate will go from 7.5 percent to 8 percent.

Last year, after much uproar, Assemblywoman Aileen Gunther, and State Senator John Bonacic successfully blocked the sales tax increase.

Legislative Chairman Christopher Cunningham’s arrogance was partially to blame for the failure of not getting the measure approved last year.

When Bonacic and Gunther requested documentation from Cunningham and other members of the legislature they were ignored, attacked, and ridiculed.

In fact, Assemblywoman Aileen Gunther had to come up with extra state funds to restore projects that the legislature slashed.

One of my major contentions for not supporting the tax hike last year was that the County had to do more, and it appears they are.

Those running our government are finally rolling up their sleeves and getting to work in attempting to fix our budget mess. New County Manager David Fanslau has been working hard on finding some real solutions.

Last year Cunningham and his loyalists had no money to run the government, but were always able find funds when they needed it to serve their purposes. Perfect examples were the monies they found to hire legislative aide Alexis Eggleton and the position they created for losing Sheriff’s candidate Frank Armstrong at the Veteran’s Services Agency.

In any event, running Sullivan County has become very difficult, in part because so much property is off our tax rolls. Our tax base is continually sinking because of the lack of high paying employment opportunities here. That may finally change if we get casino gaming and attract other industries here.

I am elated that County Treasurer Ira Cohen has the guts and willpower to propose legislation that will put an end to the easy process that allows properties to be taken off our tax rolls. 

Our elected officials in Albany allow those loopholes to continually exist due to powerful voting blocks. Hopefully, Cohen, with our support will be victorious in this important cause.

The argument to some is that we need to have a sales tax increase, because this will force people who live on tax-exempt land to pay some taxes here. They say these people have to buy gas, and make purchases in stores that charge sales taxes. That theory has some flaws because some of these very same people have tax- exempt status when making purchases at stores.  In essence many of them do not contribute to our sales tax.

Another problem Sullivan County taxpayers have is the huge sum of monies we spend on Medicaid and other social service programs. These programs are literally bleeding us.

I am very concerned that too many people are purchasing their goods outside Sullivan County, because we do not have that many stores. Drive down Monticello and Liberty and look at all the empty storefronts. It is disturbing that when someone like businessman Gordon Jenkins attempts to get a Nike franchise for his shoe store he encounters nothing but obstacles. We need to attract named franchises and big box chains to Sullivan County.

Unless one is on a social service program, the cost of living in Sullivan County is very hard. Even our gas prices are more here than in New York City. And, speaking of New York City, Mayor Bloomberg just recently proposed to eliminate the city’s sales tax.

Sadly, if our economy does not improve, people might be forced to move. That is why it is very difficult for me to whole-heartedly support the sales tax increase.

Our legislature needs to do something to fix our economic woes. Continually asking taxpayers to shell out more money is not the solution. It is not even a band-aid. Working to change the economic conditions in Sullivan County is.

Nonetheless we have to confront reality, and I am pleased with the work Fanslau has accomplished during the past several months. Look it is a start, even if it requires a sales tax increase for us.

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