Syracuse, N.Y. – Onondaga County legislators today delayed for at least a month any consideration of increasing taxes on residential energy customers, raising the possibility that the county might have to lay off employees.
Legislators voted 15-2 to put off until July a vote on reviving the county’s 4% sales tax on residential energy bills, which has not been collected since 1982.
The tax was expected to cost a typical household about $6 a month. It would raise an estimated $3.7 million by the end of this year and up to $12 million in 2021, officials said.
Legislature Chairman David Knapp predicted that the county might have to lay off employees soon as a result of tabling the measure. Layoffs proposed by the county executive require approval from the legislature.
“I would anticipate a sizable … layoff resolution for Ways and Means (committee) next week based on this action today,’’ Knapp said.
During a Zoom meeting today, many legislators said they were reluctant to raise taxes at a time when county residents are suffering financial hardship because of the corona pandemic. Most said they wanted to see more information on the county’s financial position, including the possibility of federal aid, before they could support the tax.
County Executive Ryan McMahon had proposed reviving a 4% county sales tax on residential energy sales. The tax was discontinued in 1982 in Onondaga County.
Residential energy sales are exempt from state sales tax. But counties and other taxing jurisdictions have the option to charge residential customers a local sales tax, which is already paid by commercial customers. More than 50 other counties, cities and school districts in New York currently impose a similar residential sales tax, state records show.
Legislator Casey Jordan, R-Clay, was among several who said they wanted to wait to see if the county could make due without raising the tax.
"At this point in time, I think it is a bit premature,'' Jordan said.
Legislator Peggy Chase, D-Syracuse, said the tax would be too much of a hardship for constituents.
“At a time when people are hurting so much, to put this on them, I just can’t support this right now,” Chase said.
Only two legislators, Republicans James Rowley and Tim Burtis, opposed the motion to table the measure.
During his daily 3 p.m. news conference today, McMahon said the county will face hard decisions this month. Unless funding arrives from the state or federal level, county legislators will face a choice between layoffs and raising new revenue, he said.
The county is facing a budget deficit of about $100 million, McMahon said.
“We’re in June. A lot’s going to happen. And then the leaders of this community are going to have to step up and make tough decisions,'' he said.
Tim Knauss is a public affairs reporter for syracuse.com/The Post-Standard. Contact him anytime: email | twitter | | 315-470-3023