Rockland Lawmakers Reject County Executive’s Sales Tax Hike Plan

NEW CITY, NY — Rockland County lawmakers recommend that the County Executive consider dealing with the financial crisis caused by the coronavirus pandemic by getting concessions from unions, furloughing workers, hiking property taxes, renegotiating vendor contracts and eliminating the 100-plus currently vacant positions in county government.

Last week they rejected his proposals for raising the sales tax and selling the Sain Building, saying it was too early to do the former and that the latter would be put on a future agenda.

"Many people have lost their jobs or had their hours cut, but they still need to make necessary purchases," Legislature Chairman Alden H. Wolfe said. "Increasing the sales tax on those purchases at this time would serve to make things even harder for these families and for the businesses that could see fewer customers as a result."

Legislators voted 9-8 against the resolution, which sought to obtain home rule approval from the New York State Legislature granting Rockland the authority to increase its local sales tax by one-half of one percent. The governor would also have to sign the measure into law.

It was one of three County Executive Ed Day sent to the Legislature saying Rockland needs revenue to offset a "fiscal tsunami" caused by the new coronavirus pandemic. In mid-August Day projected a revenue shortfall of $40-50 million and said the state's decision to withhold 20 percent of promised state aid and reimbursements would make things even worse. "If we just accepted this fiscal situation it would result in the need for 200 layoffs. That is why we need to take these additional steps to protect our employees from possible layoffs and property taxpayers from the double-digit rate increases of the past."

Wolfe said county government should focus on economic development, including finding ways to draw new businesses into Rockland County versus imposing a tax increase that could send more shoppers to New Jersey, where sales tax is lower.

“It’s provocative to threaten 200 layoffs of county workers as its only one of the myriad options available to the County Executive in preparing his 2021 budget,” Wolfe said. “We all look forward to working collaboratively to ensure all essential services are maintained for our residents and businesses without overburdening anyone."

The county executive imposed austerity measures curtailing all non-essential and discretionary spending in March. A hiring freeze was put in place in May.

Lawmakers said they wanted more details on the impact of the coronavirus pandemic shutdown on Rockland’s economy, including specifics about sales tax shortfalls. They said they expected to learn a great deal more once the financial plan for 2021 is submitted, with anticipated revenues and expenditures plus programs, projects and services to be included or cut.

The county executive is required to submit a budget proposal by Oct. 1. Day had asked the Legislature for a postponement to Oct. 23, but lawmakers rejected that proposal also, saying they didn't have the legal authority.

They also wondered whether the federal government will act to provide relief to struggling municipalities. Gov. Andrew Cuomo in a news briefing Tuesday said the federal government has made clear it will not provide pandemic assistance to state and local governments.