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Ogdensburg offers praise and support for plan to extend existing sales tax agreement, but no formal action taken

Posted 12/16/20

BY JIMMY LAWTON North Country This Week OGDENSBURG – For the first time in nearly a year, sales tax negotiations between the Ogdensburg and the county are nudging forward. At a special meeting Dec. …

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Ogdensburg offers praise and support for plan to extend existing sales tax agreement, but no formal action taken

Posted

BY JIMMY LAWTON
North Country This Week

OGDENSBURG – For the first time in nearly a year, sales tax negotiations between the Ogdensburg and the county are nudging forward.

At a special meeting Dec. 16, the city offered support for a deal that would extend the existing contract between the county and the city for three years.

The negotiations between the city and county had been public and heated at times, with Mayor Skelly remaining adamant that Ogdensburg retain its share of the county sale tax.

Ogdensburg City Manager Stephen Jellie said the negotiations have been “tough but good.”

He told council no action was needed on the matter, which would still require review from state officials before county or the city would ratify it.

Jellie said County Attorney Stephen Button requested a signal that the deal was palatable for the city so that it could move to the next stages of review.

Skelly was happy to oblige. He offered appreciation to county legislators for bringing the proposal forward.

“I think this is an important move, not only for the city but for the towns and villages,” he said.

Councilor Steve Fisher, who serves on the city’s negotiating team said he appreciated the work of councilors and legislators and was hopeful the proposal could be ratified in the near future.

“I really hope we can watch the ink dry on this in the short term,” he said.

Council unanimously gave support to the measure, but in an earlier interview with County Chairman Joseph Lightfoot indicated that the measure, while supported by the negotiating team may not have the votes needed to pass the full board of legislators.

Many counties in New York State do not share their sales tax with towns and villages, according to Lightfoot. Those that do share, do so at a rate of about 30 percent on average, according to Lightfoot.

He said the county shares significantly more.

“What they got was something for them to take a look at to see if that’s something that they could go along with,” Lightfoot said. “But I’m not sure we’re there yet.”

Lightfoot said that he and others are unsure if they would support the committees’ proposal. Though Lightfoot said that as a committee member he did support sending it to Ogdensburg to review.

Lightfoot said there is language in the proposal that would give the city three choices at the end of the agreement.

The city would be able to preempt the county and retain sales tax collected within the city limits, another plan could be reached or the city would need to accept that their share will be determined based on the same criteria as towns and villages.

The issue is likely to come before the St. Lawrence County Finance Committee Monday.

Sales tax formula

Sales tax in St. Lawrence County is 8% of the cost of purchases. The state takes half of that and the county collects the other 4% which it then divides between itself and the municipalities in a specific, and perhaps convoluted formula.

Half of the first 3 percent of the 4 percent total received back from the state goes to the county. The other half of the first 3 percent is divided, with 6.4 percent of that going to the City of Ogdensburg and the remaining 43.6 percent divided between the towns and villages.

The remaining 1 percent of the 4 percent total received from the state is divided, with 83.6 percent kept by the county, Ogdensburg getting 6.4 percent and the remaining 10 percent doled out in shares to the towns and villages.