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Chautauqua County 5% tax cut worth look

County Legislator Terry Niebel threw a curve-ball last week in regard to the recent discussion regarding the raising of the sales tax from 7.5 to 8 percent. In a commentary that appeared in our May 17 edition, Niebel believes -?like fellow legislators – that if the state agrees to the increase, property taxes must be reduced.

His proposal, however, is not in line with some early suggestions of 3 percent. He wants to take it a bit further: a 5 percent property tax decrease.

“This half-percent (sales-tax) increase will raise yearly revenues by $7.8 million,” Niebel wrote. “The main reasons given for supporting the sales-tax increase is that it will provide tax relief for homeowners and correct an ongoing structural deficit problem.”

Niebel was one of four legislators to not back the increase of the sales tax. And, for this to be agreed upon by Albany, property tax reductions would have to be a part of the implementation.

Of course, we have made the case, once extra funds are in hand it is tough for governments to put the money toward lowering taxes. Instead, they find other projects to spend on.

In Niebel’s commentary, he says even with a 5 percent cut in property taxes, there would still be $4.6 million for infrastructure improvements.

County Executive Vince Horrigan compared our county property tax rate with Erie County before having the sales tax hike increased by the legislators. Erie County’s are much lower, so this 5 percent plan – proposed by Niebel – gets us closer to that number.

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