Will Our Financial Mess Ever Turn Around?

by: Bill Liblick

Those who run our county can issue all the statements they want that our economy is turning around. Those responsible for bringing trade and industry here can join the bandwagon and say all they want about how things have improved in Sullivan County. But, the fact of the matter is, results are what really count.

The statistics just released pertaining to our financial condition should be a serious concern to everyone who lives in Sullivan County. Sure the spin is on that our economic conditions is not that bad, and that things will soon dramatically improve.  But, the sad reality is that we are quickly sinking deeper and deeper into a hole.

Data issued clearly displays the fact that housing sales continue their slump, and even worse is the fact that sales tax revenue is running lower than projected.

Sales taxes will be increasing June 1, and in order for the hike to be quickly approved by the New York State Legislature, what could have potentially increased our revenue stream unfortunately will not. The powerful Assembly Ways and Means Committee killed language that would have made it easier to collect sales tax from people staying at tax-exempt properties.

As of April 30, the number of new home deeds filed with the county was down 20 percent from last year. There are those who are blaming the late spring for this slump. But in reality, sales should be up because generally those who have their homes on the market are lowering prices, plus all the new construction ongoing in Sullivan County.

Perhaps we are going to wait until all the new Hassidic Developments are constructed (of which some will be off the tax rolls), and then we will witness a huge surge in sales.

Realistically, in order for us to have more home sales, we will need new innovative industry and commerce in Sullivan County, no not just gambling casinos, although that will play a major part to revitalizing our economy. We need jobs and opportunity in Sullivan County to attract year-round homeowners.  We need a reason for college graduates to return here. I cannot say it enough.

Clearly people are not shopping in Sullivan County. As of April 30, we collected around $200,000 less than last year. Our sales tax, which will increase to 8 percent, will also see our hotel occupancy tax rise to 5 percent.

You might ask where are all the hotels? Many people are asking the same question. Are we asking guests at Kutsher’s and Villa Roma to pay the brunt? It is hard enough for these hotels to get vacationers to stay up here altogether.

We should not forget the rooms which social services rents at local motels to house people. This leads one to wonder are taxpayers paying the increased room tax indirectly?

The one item, which would have been groundbreaking for us, would have been if the language were approved in Albany to tax those staying at not for profit and religious retreats. Guests would have had to prove that they stayed at these facilities for tax-exempt purposes only. County Treasurer Ira Cohen has been a big advocate of this, and it would have been easier for him to collect hotel taxes from these places. 

The facts speak for themselves. Sales taxes are going up, revenue is less than expected so far for this year, and homes sales are down. Is anyone in a leadership role listening and going to prevent a potential disaster from happening?

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