It was a radical tax alternative that would have cost those who commuted to Tompkins County for work. And although Tompkins officials have all but abandoned the idea of a commuter tax for now, Cayuga County lawmakers feel it's important to voice their opposition if the discussion resurfaces.
"You could go through a hundred reasons why it's an awful idea,"
said Cayuga County Legislator David Pappert, R-Auburn. "The government is already taxing too much. We have to find ways to control spending, not find new ways to fund it."
Tompkins County officials had been looking for a way to replace its skyrocketing property taxes with other revenue. The most controversial option was a commuter payroll tax, which would have been imposed on non-Tompkins County residents who work there.
Pappert plans to bring a resolution before the Legislature's Ways and Means Committee Monday night to oppose the new form of taxation, saying the tax would unfairly shift Tompkins County's tax burden to residents in adjoining counties.
If the resolution passes, Cayuga would join Seneca County in opposing the Tompkins commuter tax.
"Cayuga County is a bedroom community. Dramatically more of our people leave to work than come in to work," Pappert said.
According to Tompkins County's estimates, about 13,000 workers come from outside the county.
And with property taxes increasing at a scary rate, the county was eager to find an alternative revenue stream.
"We felt like the property tax burden is becoming unbearable," said Tompkins County Legislature Chairman Tim Joseph. "As (property tax) is becoming a major source of revenue, it's not acceptable anymore."
So the county formed a committee to research the possibility of creating alternative ways of generating revenue other than property taxes. The committee found establishing a local income tax, commuter tax, and/or meals tax would substantially reduce property taxes.
A few states, including Maryland, Pennsylvania and Indiana, have local income taxes, the report said.
The committee's research also uncovered a snag in the plan. Any type of commuter tax on non-residents would require state Legislature approval and most likely a public referendum.
Assemblywoman Barbara Lifton, who represents part of Tompkins County, told Joseph that a local income tax on residents would be more feasible provided there was a referendum and it was clearly stated it would be in lieu of property taxes.
But a non-resident commuter tax most likely wouldn't gain support, she told Joseph.
Since then, the Tompkins County Legislature has not put forth resolutions to impose any of these taxes.
They're still actively researching resident income taxes but virtually abandoned any hope of a commuter tax.
"We have only explored it and shared what we found out," Joseph said. "It's getting kind of tiresome having people launching full-scale lobbying efforts against the commuter tax."
The talk of a commuter tax worried Seneca County lawmakers, who passed a resolution earlier this month urging state officials to reject any effort to levy the tax on residents of any county who work in Tompkins.
"The county was concerned the earlier in the process to let the state Legislature know we oppose it was best," said Seneca County Attorney Steven Getman.
Another sticking point about the commuter tax was the demographics of who would be most affected.
The Tompkins County study group's report looked at the Seneca-Tompkins area because of how census data was divided. It found the median income for people who work in Seneca-Tompkins but live in an adjacent county is $29,980.
"It seemed to be a tax on the middle class," Getman said.
Cayuga County Legislature Chairman Herb Marshall doesn't feel passing resolutions is the best way to solve problems between counties.
"I feel very strongly we need to develop a relationship to work within counties," he said.
For Pappert, there's virtually no way to salvage the idea of a commuter tax and make it appealing, especially to his constituents who feel overtaxed already.
"It's like getting a weed in a crack on your sidewalk. You don't leave it thinking it will grow into a rose," he said.
Legislator Peter Tortorici believes its an unfair tax.
"You're providing a service for the company you work for, but you bring your paycheck home and spend it," said Tortorici, R-Auburn.
But Legislator Steve Cuddeback would like to explore the idea. The commuter tax could be a way to more equitably spread the tax burden and not have it rest solely on property owners, he said.
"Let's not wipe everything out with a broad brush," said Cuddeback, R-Niles. "It's important we keep the back doors open for discussion and study for a better way of taxation."
Tompkins County's study looked at the effect of a 1-percent tax on income. Cuddeback is not sure how much that would generate from Cayuga County commuters, but that would be a negligible part of an individual's income.
"You'd never miss 1 percent," he said.
He would only support this type of tax if it replaced property tax all together, which could be an impetus to economic development. "It might entice small business to flourish," Cuddeback said.
Staff writer Liz Hacken can be reached at 253-5311 ext. 267 or
elizabeth.hacken@lee.net
said Cayuga County Legislator David Pappert, R-Auburn. "The government is already taxing too much. We have to find ways to control spending, not find new ways to fund it."
Tompkins County officials had been looking for a way to replace its skyrocketing property taxes with other revenue. The most controversial option was a commuter payroll tax, which would have been imposed on non-Tompkins County residents who work there.
Pappert plans to bring a resolution before the Legislature's Ways and Means Committee Monday night to oppose the new form of taxation, saying the tax would unfairly shift Tompkins County's tax burden to residents in adjoining counties.
If the resolution passes, Cayuga would join Seneca County in opposing the Tompkins commuter tax.
"Cayuga County is a bedroom community. Dramatically more of our people leave to work than come in to work," Pappert said.
According to Tompkins County's estimates, about 13,000 workers come from outside the county.
And with property taxes increasing at a scary rate, the county was eager to find an alternative revenue stream.
"We felt like the property tax burden is becoming unbearable," said Tompkins County Legislature Chairman Tim Joseph. "As (property tax) is becoming a major source of revenue, it's not acceptable anymore."
So the county formed a committee to research the possibility of creating alternative ways of generating revenue other than property taxes. The committee found establishing a local income tax, commuter tax, and/or meals tax would substantially reduce property taxes.
A few states, including Maryland, Pennsylvania and Indiana, have local income taxes, the report said.
The committee's research also uncovered a snag in the plan. Any type of commuter tax on non-residents would require state Legislature approval and most likely a public referendum.
Assemblywoman Barbara Lifton, who represents part of Tompkins County, told Joseph that a local income tax on residents would be more feasible provided there was a referendum and it was clearly stated it would be in lieu of property taxes.
But a non-resident commuter tax most likely wouldn't gain support, she told Joseph.
Since then, the Tompkins County Legislature has not put forth resolutions to impose any of these taxes.
They're still actively researching resident income taxes but virtually abandoned any hope of a commuter tax.
"We have only explored it and shared what we found out," Joseph said. "It's getting kind of tiresome having people launching full-scale lobbying efforts against the commuter tax."
The talk of a commuter tax worried Seneca County lawmakers, who passed a resolution earlier this month urging state officials to reject any effort to levy the tax on residents of any county who work in Tompkins.
"The county was concerned the earlier in the process to let the state Legislature know we oppose it was best," said Seneca County Attorney Steven Getman.
Another sticking point about the commuter tax was the demographics of who would be most affected.
The Tompkins County study group's report looked at the Seneca-Tompkins area because of how census data was divided. It found the median income for people who work in Seneca-Tompkins but live in an adjacent county is $29,980.
"It seemed to be a tax on the middle class," Getman said.
Cayuga County Legislature Chairman Herb Marshall doesn't feel passing resolutions is the best way to solve problems between counties.
"I feel very strongly we need to develop a relationship to work within counties," he said.
For Pappert, there's virtually no way to salvage the idea of a commuter tax and make it appealing, especially to his constituents who feel overtaxed already.
"It's like getting a weed in a crack on your sidewalk. You don't leave it thinking it will grow into a rose," he said.
Legislator Peter Tortorici believes its an unfair tax.
"You're providing a service for the company you work for, but you bring your paycheck home and spend it," said Tortorici, R-Auburn.
But Legislator Steve Cuddeback would like to explore the idea. The commuter tax could be a way to more equitably spread the tax burden and not have it rest solely on property owners, he said.
"Let's not wipe everything out with a broad brush," said Cuddeback, R-Niles. "It's important we keep the back doors open for discussion and study for a better way of taxation."
Tompkins County's study looked at the effect of a 1-percent tax on income. Cuddeback is not sure how much that would generate from Cayuga County commuters, but that would be a negligible part of an individual's income.
"You'd never miss 1 percent," he said.
He would only support this type of tax if it replaced property tax all together, which could be an impetus to economic development. "It might entice small business to flourish," Cuddeback said.
Staff writer Liz Hacken can be reached at 253-5311 ext. 267 or
elizabeth.hacken@lee.net
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