Ryan, Rennia call for return to 50/50 Sales Tax split
3/25/2013 (Updated 6:46:17 PM)BINGHAMTON -- It was a hot button issue during the county executive race, and now, the issue of the 50/50 sales tax split is resurfacing.
Of the 8% sales tax you pay, New York State takes 4% while counties and municipalities split the other 4%. A deviation from the 50/50 split between Broome County and its municipalities took effect in 2009. Binghamton Mayor Matt Ryan says the current split is 58% for the county and 42% for the municipalities. Democratic mayoral candidate and Binghamton City Council President Teri Rennia says this significantly impacts localities.
"The municipalities hit hardest by this change in formula are the urban cores. The urban cores are key to the success of the county," Rennia said.
"This was supposed to be only for the times when the county was in fiscal stress. They clearly aren't in fiscal stress anymore if they can have two 0% tax increases. That's the definition of not being in fiscal stress anymore," Ryan said.
In a written statement, Deputy County Executive John Bernardo (R) said "The county executive has a responsible plan that will restore the 50/50 sales tax formula in the coming years.
"When the county executive laid out a reasonable plan to restore a 50/50 sales tax split, including 10% more to municipalities in 2013, Mayor Ryan was not interested in understanding our plan.
"The city's problems are related to spending, and until the mayor and council president get the city's spending under control, they will never deliver a responsible budget for the taxpayers."
Mayor Ryan also said that the city would have received an estimated $2.8 million over the last two years under a 50/50 split.
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