Senator Jim Wright

April 20, 2007

SENATOR WRIGHT BROKERS ELIMINATION
OF HEATING FUEL TAX

Senator Wright today announced he has agreed to introduce legislation that would continue the .75% sales tax for Jefferson County which is set to expire in December of 2007. This legislation will maintain the local sales tax level at 3.75 through 2009. The local sales tax extension requires approval of the state legislature and the consent of the Governor.

Prior to agreeing to reauthorize the local sales tax, Senator Wright met with county officials on several occasions and conducted a thorough review of Jefferson County’s financial position. Upon completion of the Senator’s review he became convinced that not extending the .75% sales tax would have an adverse impact on property taxes and on the services that the county and local governments provide.

However, what also became apparent in Senator Wright’s review of the County’s situation is that the growth of the economy and population in the region provided room for some form of tax relief.

Therefore, Senator Wright and County officials have reached an agreement that the County will eliminate the 2% sales tax it currently imposes on residential energy sales. The elimination of this tax will result in savings for working families and senior citizens across the county at a time when energy prices continue to climb.

“Governments should not reap revenue windfalls when working men and women and senior citizens are facing escalating energy and gas costs,” said Senator Wright. “The sales tax on residential energy sales is calculated as a percentage of the price; thus as the price of the commodity increases, so does the tax. Hence, this became our focus.”

“I want to thank Senator Wright for his assistance. While I was hoping the county would support a clothing tax exemption, I am very pleased with the decision to drop the 2% residential energy tax. Certainly this will help out all our families and households in Jefferson County,” said Carolyn Fitzpatrick, Vice Chairwoman of the Board of Legislators.

Senator Wright acknowledged the efforts of County Legislator Mike Behling (Adams) who has long advocated for the clothing tax exemption. However, it became apparent that the clothing tax exemption lacked the sufficient support among local officials to receive passage. Therefore, Legislator Behling joined with the Senator to advance a tax cut on residential heating sales as a compromise.

“The elimination of sales tax for residential heating fuels is a very good thing. It is a tax break that will affect all the people of Jefferson County, no matter if you are rich or poor, much like the elimination of the sales tax on clothing would have done. Therefore I’m happy to move this compromise forward at the County Legislature level. Thank you to Senator Wright for his help and support,” said Legislator Behling.

The elimination of the sales tax on residential home heating fuels will result in savings for taxpayers of over $1.6 million (03’-04’ dollars), and given the growth of sales tax dollars over the last five year period, it is not expected that the elimination of this tax will impact village or town budgets going forward.

In addition to the elimination of the sales tax on residential energy sales, which will be implemented prior to the winter heating season, the County has agreed to discontinue the practice of charging the City of Watertown for costs associated with the dispatch of police, fire and emergency services.

“The ending of separate city payments for dispatch services, coupled with last year’s transfer of the airport, are concrete examples of the City and County working together for the benefit of all,” said Mayor Jeff Graham, City of Watertown.

Currently the City of Watertown is the only municipality charged this County fee. Furthermore, the City of Watertown is the only municipality with a school district which also charges an additional utility tax. Senator Wright encouraged the county to take this action in a effort to achieve municipal equality, not unlike the sales tax revenue sharing agreement that the County, City, and towns entered into two years ago. The county will discontinue charging the City this fee on a phased-in basis over two budget cycles.

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