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Efforts to exempt heating fuels from St. Lawrence County imposed tax fizzles

Posted 11/23/21

BY JIMMY LAWTON North Country This Week Efforts by Legislator Larry Denesha, R-DeKalb, to do away with a county imposed tax on home heating fuels garnered little support Monday Nov. 22 at a Finance …

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Efforts to exempt heating fuels from St. Lawrence County imposed tax fizzles

Posted

BY JIMMY LAWTON
North Country This Week

Efforts by Legislator Larry Denesha, R-DeKalb, to do away with a county imposed tax on home heating fuels garnered little support Monday Nov. 22 at a Finance Committee meeting.

When the state began its sales tax decades ago, it allowed counties the option to also exempt heating fuels in their local share of the tax, but St. Lawrence County and about a dozen other counties opted not to.

The old St. Lawrence County Board of Supervisors adopted that policy in the mid-1960s, and there has been discussion of exempting fuels from time to time since then, but has failed to gain steam over the years.

In the past, some have argued home heating fuels including oil, natural gas, propane, pellets and firewood should be exempt as they are necessities, like food.

However, those supporting the tax say the impact of losing the revenues would be substantial for the county as well as municipalities who receive a portion of the proceeds.

Treasurer Renee Cole estimated that the tax on home heating fuel brings in about $4 million to the county annually, though she noted that fuel prices and weather play greatly into the actual number.

Legislator Joseph Lightfoot, R-Oswegatchie, said he ran the idea by some of the municipalities he represents and said they did not support removing the tax. He said Morristown would lose about $40,000 in sales tax revenue if the tax was abandoned.

Denesha noted that he received mixed support from municipalities he represents, but said he believed St. Lawrence County residents, especially the working poor, should not be charged for heating fuels.

Legislator David Forsythe, R-Lisbon, questioned if the county could look to build on the Heating Energy Assistance Program by offering additional county subsidies to those who meet the requirements. Other legislators like Rick Perkins, R-Potsdam, and Tony Arquiett, D-Helena, favored that proposal and talked about possibly expanding the eligibility.

Legislator John Burke, R-Norfolk, seemed to show some support for abandoning the tax, though he was also open to discussing alternatives.

Lightfoot said that while he believed the idea had merit, he said the timing was poor as most municipalities have already prepared their budgets.

He said any decision should also be supported by municipal leaders.

Although town and village representatives might not be keen on the additional funding, 89 percent of respondents to an unscientific 2018 survey on NorthCoutnryNow.com favored abandoning the tax.

County officials pointed out that Ogdensburg City School also collects a 7 percent tax on home heating fuels which generated $74,000 in one just month last January. However, it was unclear how much the tax generates on an annual average.

Legislators took no action on the matter.