Orange County shares $5.32 million in surplus of sales tax with municipalities
County’s sales tax revenue rose by more than $9.98 million in 2018
Goshen, N.Y. – Orange County Executive Steven M. Neuhaus has announced that the County has shared $5.32 million in sales tax surplus received for fiscal year 2018 to its municipalities.
“Orange County has a generous sales tax sharing plan,” Neuhaus said. “We share a larger amount of sales tax than many other counties annually and our municipalities can count on that funding to augment their budgets or help meet their community’s needs. This initiative has been key to the financial turnaround Orange County continues to make.”
According to the State Department of Taxation, Orange County’s sales tax revenue rose by more than $9.98 million in 2018, an increase of more than 3.6 percent from 2017. Orange County budgeted $271.97 million in sales tax for 2018, but generated $289.86 million. The County shares that revenue with 42 towns, villages and cities.
“In these difficult financial times, which have been compounded by the loss of the New York State Aid and Incentive Revenue, the added sales tax came at the right time to really help the budget for the Town of Newburgh,” Town of Newburgh Gil Piaquadio said.
Moody’s Investors Service, the financial services ratings company, recognized Orange County last February for sharing $3.8 million in sales tax surplus received for fiscal year 2017 to its municipalities. Last month, Moody’s upgraded Orange County’s financial outlook, raising the County’s bond rating back to Aa2 with a stable outlook from the lower Aa3.
An Aa2 rating reflects the stabilization of the County’s reserves and a large tax base that continues to expand average resident wealth and incomes, and a manageable debt burden. Moody’s specifically credited Neuhaus and the County Legislature’s success in rebuilding the County’s fund balance.