COMPTROLLER MYCHAJLIW: MORE MONEY FOR MUNICIPALITIES AFTER SALES TAX REVENUE INCREASES

Erie County Comptroller Stefan I. Mychajliw Jr. credits federal tax cuts, giving families relief from back-breaking taxes, for the increase of sales tax revenue in the 3^rd quarter 

Erie County Comptroller Stefan I. Mychajliw announced that cities, towns and villages across Erie County will see more money coming their way due to an increase in sales tax revenue collections.  In a report to the Erie County Legislature, Comptroller Mychajliw reported that municipalities will continue to see a year-to-year increase in the sales tax revenue they receive. Erie County collects sales tax revenue, and then shares portions of it with towns, cities and villages.  

Because of a 1977 Sales Tax Agreement, the Office of Erie County Comptroller distributes the sales tax funding proportionally to all municipalities. In all, three cities, 25 towns and 16 villages across the region receive a percentage of sales tax revenue.  Based on that 1977 agreement between the County of Erie and the Cities of Buffalo, Lackawanna and Tonawanda, those three cities agreed not to collect their own sales tax.  The report shows third quarter collection and distribution of sales tax revenue is up compared to the same time period last year. 

“Thanks to federal tax cuts, taxpayers have more money in their paychecks and pockets.  I hope Congress passes a second round of tax cuts.  That money belongs in the hands of families across Erie County, not the government.  With more discretionary funds, taxpayers are reinvesting that money back into our local economy.   This increases sales tax revenue,” said Comptroller Mychajliw. 

“Through this sales tax sharing agreement, communities benefit significantly. Without these funds, cities, towns and villages would possibly have to implement massive tax increases, drastically cut spending, eliminate services, or a combination of all three drastic measures.” 

For the third quarter of 2018, the three cities (Buffalo, Lackawanna and Tonawanda) received $23,661,348; 25 towns received $20,269,418; and 16 villages received $2,368,390 through the agreement.  This represents a 3.47 percent increase from last year. 

“Communities across Erie County would struggle without this revenue.  In addition to cities, towns and villages receiving this funding, public school districts do as well. Every day we see the benefit of this agreement.  I am happy to report an increase in funds compared to 2017.”

According to the most recent data available to the Comptroller’s Office, the total sales tax revenue collected in 2018 through the third quarter is $14.3 million higher than last year.