Sales Tax Task Force needed to pump up revenue in Orleans County
Orleans County, despite recent gains in its sales tax revenue, ranks last among small counties in per capita sales tax.
Among counties with 50,000 people or less, Orleans took in $560 per capita in 2022, or $22.5 million in a county with a population of 40,148.
Other similar-size counties bring in much more sales tax, key revenue that can offset property taxes and allow local governments to provide more services or tackle infrastructure and other projects.
Essex County in northeastern New York, for example, has fewer people than Orleans with 37,314. Yet the county’s sales tax collections hit $41.0 million in 2022. Its per capita sales tax of $1,099 is the highest among counties under 50,000 people.
Data from U.S. Census Bureau and State Comptroller’s Office, with per capita calculations by Orleans Hub.
Closer to Orleans, Wyoming County has nearly the same population with 40,338. But Wyoming’s sales tax is $2.3 million more in 2022 – $24.8 million compared to $22.5 million.
Orleans County has experienced a big increase in sales tax revenue in recent years, jumping 27 percent or by $4.8 million from $17.7 million in 2019 to $22.5 million in 2022.
That increase, partly fueled by sales tax on internet purchases, has helped the county tackle capital projects, especially culvert and bridge projects, while staying below the tax cap.
The county keeps 94 percent of the overall amount and shares 6 percent with the 10 towns and four villages.
But why is Orleans lagging compared to other smaller counties? That is a question our local officials should wrestle with. If Orleans could match Wyoming, that would be $2.3 million more to offset property taxes. Orleans Hub posted a story on Jan. 3 that Orleans has the highest effective property tax rate at 3.40 percent, compared to a state average of 1.62. That rate is determined by taking the median household tax and dividing by the median home value. In Orleans, that is $3,445 divided by $101,400.
In Wyoming, the median property tax is $3,114, more than $500 cheaper than in Orleans. The effective tax rate in that county is 2.62 percent. Wyoming benefits from the presence of Letchworth State Park and the county has numerous signs directing people to the park.
Orleans County should step up its signage directing people to Lake Ontario and other attractions. The County Legislature should share more of the sales tax with towns and villages so they have more incentive to improve their signs and offer more amenities to bring people into the community and to stay longer. The county hasn’t increased the sales tax share to the towns and villages since 2001. Many of those municipalities have continued to upgrade parks and try to improve the quality of life despite no increase in the sales tax.
The Legislature was smart to create a full-time tourism director position and boost its efforts with sportsfishing promotion. But the numbers show there is more work to be done. The county needs a sales tax task force that looks at the successes in these other smaller counties, and seeks to replicate them here.
The task force should include representatives from villages, towns, the county, the Chamber of Commerce and others in the business community. The county should put out an RFP for an impartial consultant to help brainstorm ideas, look at the other counties for inspiration and come out with a better system for sharing the money.
At the very least, let’s do a “Shop Local – and lower your taxes” campaign. The Chamber could take the lead with that.
More sales tax means more revenue to offset our high property taxes, and also reflects a more dynamic local economy with people spending more at businesses in Orleans County. Everyone would win if we can make bigger strides with sales tax, especially if the county shares more of the money with the villages and towns. It would knock down our tax rates and create more job opportunities.
The village of Albion put in a new splash pad at Bullard Park that opened in 2022. The splash pad has been popular among local families, and draws people from outside the community. It is part of about $800,000 in Bullard Park improvements that also include an amphitheater, pavilion with bathrooms and a walking trail.
