For the first time, Schoharie County’s seeing more from sales tax than property taxes—something Administrator Korsah Akumfi said underscores the critical importance of economic development as part of his tentative $97.8 million budget for 2024.
As it stands, the budget proposes using $4.2 million from the fund balance.
The budget is up 8.86 percent over 2023’s adopted budget, and will raise the property tax levy by 3.68 percent—$832,144—but still under the tax cap of 4.25 percent.
In order to keep the tax levy at the 2023 level, supervisors would need to draw an additional $832,000 from the fund balance
With two months to go in 2023, Mr. Akumfi said he’s projecting $22.5 million in sales tax revenues.
Property taxes?
$23.5 million.
When it comes to property taxes, Mr. Akumfi said Schoharie County is the second most expensive place to live in New York State.
The only way to change that, he told members of the O-Tax Board Monday—he’ll present his budget to supervisors Friday before the Finance Committee begins working on it—is by investing in businesses and economic growth.
O-Tax revenues—taxes on lodging including hotels and Airbnbs—are expected to top out at $220,000 in ’23, Mr. Akumfi said; he’s budgeted $200,000 from O-Tax in ’24.
“And hopefully, with one or two hotels, that will continue to change significantly,” he said.
What does that mean to taxpayers?
According to statistics from the state’s Tourism Impact Report shared by tourism partner Destination Marketing, $933 a year to the average household—money they’d otherwise have to pay in taxes to maintain the same level of services.
Among the investments Mr. Akumfi said supervisors have made in growing the economy: renewing its three-year contract with Destination Marketing, funding the IDA at $150,000 for five years, and funding a position for an economic development coordinator, a position he expects to have filled by the end of October.
Even at $97.8 million, the tentative budget is $14 million or 12.59 percent less than the 2023 budget as revised throughout the year--$112 million versus the $88.4 million proposed last October by then-budget Officer Leo McAllister.
Not included in Mr. Akumfi’s tentative budget: approximately $750,000 in “enhancements” requested by department heads to expand or improve services.