Funding for road paving, local services impacted by county sales tax distribution error

A county sales tax distribution era combined with a county-implemented cap on gas sales tax has taken a toll on the Town of Warwick’s road paving budget, Warwick Town Supervisor Jesse Dwyer shared at the July 9 town board meeting.

According to Dwyer, the town was set to receive about $1 million in sales tax revenue for the first quarter of the year. However, due to the error, sales tax revenue sharing to towns and villages in Orange County was reduced by 20 percent. Since the sales tax revenue for the town was almost $200,000 short, Dwyer stated that this error resulted in budget cuts, and could potentially affect the budget throughout the rest of the year.

Dwyer further stated that the county’s cap on gas sales tax will hurt local taxpayers. He said the cap of sales tax at $2 per gallon may benefit commuters by saving them roughly $20 per month, but will ultimately negatively affect the taxpayers in Orange County.

“It removes a small burden from commuters, many of whom do not reside in Warwick or even Orange County. It shifts the burden directly on to local property tax payers. For Warwick, that $20 individual savings for commuters translates to a loss of more than $35,000 in local sales tax revenue – revenue that would have gone directly to funding our local roads and police services,” said Dwyer.

Dwyer called out the county for not addressing the sales tax distribution error before implementing the gas tax.

“Had the county resolved the sales tax distribution error before implementing the gas tax cap, our budget could have absorbed the hit. Instead, they compounded an already severe revenue loss for the town. Consequently, in light of the sharp reduction in anticipated county sales tax revenue, the Town of Warwick has been forced to reduce our road paving budget this year by $200,000,” stated Dwyer.

He continued, “If the county does not rectify the distribution issue, we will be forced to continue making necessary cuts to ensure local taxpayers are not left absorbing the impact of these errors. Unfortunately, as a direct result, local services will be compromised because of this.”

Supervisor addresses Jehovah’s Witnesses property acquisition

Dwyer then went on to speak about the recent acquisition of property next to the world headquarters of the Jehovah’s Witnesses. The property was originally owned by IBM and functioned as a data center, and is valued at $54 million. According to Supervisor Dwyer, the parcel of land is Warwick’s third largest property taxpayer, and contributes roughly $100,000 annually in Warwick’s tax base. However, due to the property now being operated for religious purposes, it is eligible for full exemption from property taxes.

“We fully recognize the magnitude of this situation and we are committed to doing everything within our legal power to protect Warwick’s tax base. The Jehovah’s Witnesses are excellent neighbors who contribute to our local economy and consistently support our small businesses. However, the potential loss to our tax base is significant and we’re carefully weighing all available options to move forward,” said Supervisor Dwyer.

Town in talks to add more land to preservation program

Dwyer announced that the town is currently in negotiations to add more than 200 acres into the PDR program. If approved, the total preserved PDR land would reach more than 6,000 acres. The supervisor spoke on the benefits of the PDR program for Warwick, while also acknowledging the potential consequences that come with it.

“This is a conscious visionary choice Warwick made long ago and it has successfully protected the beautiful rural character our town is celebrated for. However, as leadership we must also openly acknowledge the fiscal reality of conservation,” said Supervisor Dwyer. “Preventing development keeps these large parcels from expanding our future tax base. As we navigate the complex revenue challenges discussed tonight, we must ensure that our long-term preservation goals do not inadvertently place an undue financial squeeze on our current property taxpayers.”

Town seeks grants to further fund wastewater treatment projects

The board agreed to apply for grants related to water quality improvement projects at the Mountain Lake Park and Wickham Woodlands Park wastewater treatment plants. According to the Supervisor, they were already awarded grant money for these projects, but are looking for more grant money to cover outside costs.

Battery storage law public hearing to be held July 23

A public hearing will be held for a new proposed battery storage law on July 23, at 1 p.m. Dwyer stated that a second public hearing on the law would most likely be held in August.