Tompkins County Legislature
Special Meeting
March 1, 2005 - 3:45 p.m.
Legislature Chambers
Called to Order
The meeting was called to order at 3:45 p.m.
Pledge of Allegiance to the Flag and Roll Call of Members
Members and guests participated in the Pledge of Allegiance.
Present: 14 Legislators (Legislator Todd arrived
at 3:46 p.m., Legislator Booth arrived at 3:49 p.m., and Legislator Proto
arrived at 3:50 p.m.); Excused - 1 (Legislator Blanchard).
Privilege of the Floor by the Public
Mr. Todd arrived at this time.
Carolyn Peterson, City of Ithaca Mayor, spoke in opposition
to the resolution entitled Providing an Exemption from Sales and Compensating
Use Taxes for Receipts from Retail Sales of, and Consideration Given or Contracted
to be Given for, Certain Clothing and Footwear Pursuant to the Authority
of Article 29 of the Tax Law of the State of New York. As Mayor, she
has scheduled a special Common Council meeting for 4:30 p.m. today should
the County adopt said resolution as the City feels it would have to pass
the resolution as well since it would be difficult to have the differentials
in the taxes. If the resolutions are approved, the City has the potential
of losing $100,000 this year, which is significant as the 2005 budget is
done. She urged the County Legislature not to pass the resolution and
noted there is another opportunity to adopt this exemption in 2006, which
would also allow more time to collect and discuss information as necessary.
Mr. Booth and Mr. Proto arrived at this time.
Presentation of Resolution
RESOLUTION NO. 33 - PROVIDING AN EXEMPTION FROM SALES AND COMPENSATING
USE TAXES FOR RECEIPTS FROM RETAIL SALES OF, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, CERTAIN CLOTHING AND FOOTWEAR PURSUANT TO THE AUTHORITY
OF ARTICLE 29 OF THE TAX LAW OF THE STATE OF NEW YORK
MOVED by Mr. Penniman, seconded by Mr. Lane. Mr.
Penniman asked if the resolution is approved what the impact on the County
budget would be for 2005. Mr. Squires reported that the last time this
information was reviewed, the potential loss was $1.1 million countywide.
The estimated loss for the County is $700,000 for one year. Since the
resolution, if adopted, would go into effect June 1st, the impact is approximately
$350,000 this year. He would not recommend making any adjustments to
the 2005 budget until the second quarter sales tax receipts were available;
however, he believes it is possible the County would meet the budget estimate
should the exemption be adopted. Mr. Lane reminded Legislators that
the information Mr. Squires is referencing is dated 2002.
Mr. Totman explained his change of position on this after
talking with more people and feels that it is difficult to explain to the
public that the County needs an income tax at the same time it adopts the
proposed exemption on clothing and footwear. Ms. Robertson clarified
that the income tax is a substitute to property tax.
Mr. Winch said he has supported the one-week exemptions
in the past, but is not able to support this year-round exemption as he feels
the loss of this revenue would be made up through the property tax.
Mr. Booth feels some will consider this a tax reduction,
but stated it is a shift and does not believe the Legislature should put
this additional pressure on real property taxpayers. Ms. Kiefer agreed
with Mr. Booth's comments and stated that there is also uncertainty at the
State level of whether this will be approved or delayed. Mr. Todd also
agreed with Mr. Booth's comments and said he will not support the resolution.
Mr. Lane expressed concern with the process and commitments
from several colleagues who said they would support this but now say they
won't. He believes this exemption is a reduction in taxes and it is
for those people who are buying items such as socks, shoes, sweatshirts,
etc., at department stores that are trying to make the dollar go further.
A roll call vote resulted as follows on the resolution:
Ayes - 7 (Legislators Herrera, Koplinka-Loehr, Lane, McBean-Clairborne, Penniman,
Robertson, and Schuler); Noes - 7 (Legislators Booth, Kiefer, Proto, Todd,
Totman, Winch, and Joseph); Excused - 1 (Legislature Blanchard). RESOLUTION
FAILED.
WHEREAS, New York State Tax Law §1115(a)(30) provides
for an exemption from sales and compensating use taxes on items of clothing
and shoes that cost less than $110; in 2003 Tompkins County chose not to
adopt this permanent exemption, but instead to participate in sales tax holidays;
subsequently implementation of the permanent exemption was delayed by the
State Legislature for one year and now becomes effective June 1, 2005, and
WHEREAS, Tompkins County received notice that if Tompkins
County wishes to join New York State in permanently removing its 4% total
share of sales and use tax as of June 1, 2005, it must act to do so no later
than March 1, 2005, and
WHEREAS, if Tompkins County elects the exemption and the
State changes the terms of the exemption such change in terms shall automatically
be incorporated into the exemption provided by the county, now therefore
Be it enacted by the Legislature of the County of Tompkins, as follows:
SECTION 1. Section six of Resolution No. 256A of 1966, as amended,
is amended by adding a new subdivision (h) to read as follows:
(h) Receipts from sales of and consideration given or contracted to be given
for purchases of clothing and footwear exempt from state sales and compensating
use taxes pursuant to paragraph (30) of subdivision (a) of section 1115 of
the New York Tax Law shall also be exempt from sales and compensating use
taxes imposed by this resolution,
SECTION 2. This resolution shall take effect June 1, 2005, and shall
apply in accordance with applicable transitional provisions of the New York
Tax Law.
SEQR ACTION: TYPE II-20
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Adjournment
The meeting adjourned at 4:14 p.m.
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