Ogdensburg City Council to OK 10-year sales tax deal
Ogdensburg City Council on Monday is expected to renew its 10-year sales tax distribution agreement with St. Lawrence County. The county Legislature gave final approval to the agreement Monday by a 12-3 vote.
Once the City Council authorizes it, the agreement will go to state Comptroller Thomas P. DiNapoli for approval.
City Manager Arthur J. Sciorra said he was part of a five-member committee that reviewed the document and submitted it to council members last week. Also on the committee were City Comptroller Philip A. Cosmo and council members Thomas A. Hannan, Douglas G. Sholette and Michael D. Morley.
"The committee was satisfied with the contents," he said. "I think it's probably good to go."
The agreement takes effect Dec. 1, 2010, and will expire Nov. 30, 2020. It preserves Ogdensburg's 6.437389 percent share of the county's total sales tax receipts. The county keeps half of what it collects in sales tax and distributes to towns and villages what's left after Ogdensburg's cut.
The municipalities' share is based 50 percent on population and 50 percent on property value.
Keeping the 50-50 distribution structure struck a sour chord with two lawmakers opposing the agreement. Legislators Laura J. Perry, D-Hopkinton, and Frederick S. Morrill, D-DeKalb Junction, said the structure shortchanges sparsely populated municipalities that used to receive more sales tax revenue when distribution was based solely on property value.
The agreement also calls for the city and county to discuss any changes to the county's 3 percent sales tax, requires that both parties must agree on changes and calls for the county to consider compensating Ogdensburg for revenue losses that could result from altering the tax structure.
"We are committing the county to another 10 years where an individual city council can control what we do with our sales tax," said Legislator Sallie A. Brothers, D-Norfolk, who also opposed it.
Ogdensburg City Council will meet 7 p.m. Monday at City Hall.
