Milan opposes county’s sales tax cap

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Milan’s town board has passed a resolution “strongly opposed” to Dutchess County’s proposed cap on shared sales tax revenue.

By making it official through the resolution, Milan joins Red Hook and Rhinebeck in opposing County Executive Marc Molinaro’s plan to limit the portion of county sales tax each town receives. Each town will experience a significant decrease in funding; Milan expects to lose more than $20,000 in 2013.

The Dec. 17 resolution cited “serious negative impacts on the town’s budget” as the main reason for the board’s unanimous opposition to the proposal. Specifically, the resolution said the proposal would “adversely affect the taxes paid by the property owners in the town,” indicating that to make up the shortfall, the board would eventually need to raise taxes.

The resolution urges Molinaro and the county legislature “to restore the full sales tax revenue to the affected municipalities.” However, the Dutchess County legislature has passed its 2013 budget, including the sales tax revenue sharing plan, making such a reversal unlikely, at least this year.

The town will send a copy of its resolution to the county executive and its incumbent and newly elected legislators.

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