NEW YORK — Rockland County taxpayers will pay less on their energy bill starting Thursday, December 1, when the elimination of the residential energy sales tax goes into effect, County Executive Ed Day announced Tuesday. Good news now that winter temperatures are starting to drop.
The measure is estimated to save county taxpayers regarding $4 million this winter and nearly $12 million annually in the future.
“As families continue to face rising energy costs this heating season, I am proud that my administration and the Legislature have worked together to eliminate the energy sales tax, which is equivalent to a reduction in property tax. 8.4% county,” Ed Day said. “I am committed to continuing to find ways to lighten the load on families to the best of our ability.”
The removal of the tax fulfills a commitment made by the County Legislature and County Executive last year when the 2022 County Budget was amended, adopted, and signed. The residential energy sales tax was implemented in 2012 and will expire in 2025 following being extended due to the coronavirus crisis.
Additional efforts to achieve significant tax relief include:
- A zero percent county property tax increase for 2022.
- Elimination of the county motor vehicle registration tax in 2022.
- Reduction of the county’s portion of the sales tax on motor fuel purchases, limiting the tax charged to the first $2 of a gasoline purchase. It is valid until February 2023.
- Proposed zero percent property tax increase by 2023.
The residential energy sales tax was applied to all sources of energy, including natural gas, propane, and home heating oil, as well as electricity, including electricity used for heating, to maintain lights turned on and any other use.
“Finding ways to reduce taxes is no easy task, but I’m proud to say that by working together, County Government found a way, and the payoff will be very real for families during the coldest days of the year,” said the leader of the legislative minority, Lon Hofstein.
Tax reduction actions follow due diligence to ensure the County’s fiscal position remains strong. Major credit rating agencies have continued to improve the county’s credit ratings as the county’s shortfall has been eliminated and final payments on a retired bond to assist the deficit reduction effort are expected to be completed in 2024, among many others. measures taken to strengthen the state of the county’s fiscal situation.
Rockland’s fiscal crisis was triggered in large part by the collapse of the national housing market and subsequent recession, which led to an extreme reduction in local sales tax revenue.
“It’s been more than a decade since we were forced to raise taxes and add new ones, with the support of the Office of the State Comptroller and credit rating agencies, to help us deal with the fiscal crisis,” said the legislator. Vice Chairman of the Committee on Budget and Finance Michael Grant. “It’s a tremendous relief to be able to make these significant cuts now for the benefit of our deserving taxpayers.”
