OBSERVER Photo by Gregory Bacon The Chautauqua County Legislature voted 15-2 to keep an additional 0.25% mortgage tax in place. The entire mortgage tax is 1.25%.

MAYVILLE – County officials are going to keep an additional 0.25% on its mortgage tax.

During the recent Chautauqua County Legislature meeting, lawmakers voted 15-2 to continue with the additional mortgage tax.

Legislators Fred Johnson, R-Westfield and Tom Carle, D-Fredonia voted in opposition. Legislator Pierre Chagnon and Travis Heiser were absent.

Currently, Chautauqua County residents pay an additional 1.25% mortgage tax anytime they take out or refinance a mortgage. This is a one-time payment.

According to county officials, of the 1.25%, 0.5% goes to towns, villages and cities. The State Of New York Mortgage Agency gets 0.25%. SONYMA, also known as the State of New York Mortgage Agency, is a New York State public-benefit corporation that provides affordable homeownership opportunities to low- and moderate-income New Yorkers. The remaining 0.5% goes to the county.

Of the county’s 0.5% portion, half must go to pay for bonds for upgrades it made to the county jail and courts around 20 years ago and the remaining 0.25% can be used for anything the county chooses.

According to county Finance Director Kitty Crow, on average the county receives about $1.5 million to $1.7 million annually.

“We did receive just over $2 million in 2021 and 2022 which was higher than usual,” she added.

The way the legislation works, the portion that goes to fund the county jail and courts project does not need to be renewed on a regular basis, but the remaining portion must be renewed every two years.

In a follow up email, Crow said that 100% of the county’s receipts have been applied to correctional and court facility projects, the majority of which has been applied against its debt service obligations.

Before the vote, Legislator Fred Larson, D-Jamestown, who is a retired attorney, expressed his support.

“Having done real estate law for 38 years, these mortgage taxes are a one shot, so when you take out a $100,000 mortgage, the quarter percent is only $250 bucks,” he said, adding “nobody stops buying their home … and say ‘Oh no, I’m not going to go through with this because there’s a $250 special mortgage tax.”

But Legislator Johnson had a different take.

“Money is fungible. It is the most fungible of commodities. … We need to start thinking about what goes out of the taxpayers’ pockets and into the county’s pockets,” he said.

According to the local law approved by the county legislature, the additional 0.25% will continue until April 30, 2028.