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HomeMy WebLinkAboutMN-CC-2000-09-14COMMON COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Special Meeting 5:00 p.m. September 14, 2000 PRESENT: Mayor Cohen Alderpersons: (8)Pryor, Manos, Sams, Farrell, Blumenthal, Vaughan, Spielholz, Hershey OTHERS PRESENT: City Clerk – Conley Holcomb City Chamberlain – Parsons City Controller – Cafferillo Director of Human Resources – Michell-Nunn EXCUSED: Alderpersons: Taylor, Glasstetter PLEDGE OF ALLEGIANCE: Acting Mayor Manos led all present in the Pledge of Allegiance to the American Flag. ADDITIONS OR DELETIONS TO THE AGENDA: Mayor Cohen requested the addition of Item 2.3 Elimination of Clothing Sales Tax – Discussion. No Council member objected. SPECIAL ORDER OF BUSINESS: 2000 Compensation for Confidential Employees By Alderperson Farrell: Seconded by Alderperson Pryor RESOLVED, That for the period of January 1, 2000 through December 31, 2002, all employees not covered by a formal labor contract, excluding positions designated as management, be granted salary increases and fringe benefits in accordance with the provisions of the CSEA Administrative Unit contract. Carried Unanimously Elimination of Clothing Sales Tax Mayor Cohen distributed copies of the Tompkins County Board of Representatives Sub-committee Resolution regarding the elimination of clothing sales tax that will be considered by the Board next week. The proposed effective date for this resolution is March 1, 2002. City Controller Cafferillo reported that the projected impact of the elimination of clothing sales tax on the City would be approximately $350,000 per year. This amount was derived from reports compiled by the Association of Counties, and the NYS Department of Finance and Taxation. City Controller Cafferillo is attempting to retrieve data from New York State regarding how much money was lost from the elimination of the State portion of sales tax, in the City of Ithaca, since March, 2000. He further reported that approximately $180,000 was lost through the exemption of sales tax on textbooks. Extensive discussion followed on the floor regarding the City’s options: 1.) The City could eliminate clothing sales tax with Tompkins County September 14, 2000 2 2.) The County could eliminate their portion of the sales tax, while the City retains its 1 ½% 3.) The effective date of the elimination of sales tax could be extended Alderperson Sams arrived at the meeting at 5:25 pm. Further discussion followed regarding the possibility of future property tax revenues offsetting the loss of sales tax revenues. Cortland, Broome, Schuyler, and Tioga Counties opted to eliminate the clothing sales tax, however northern counties have not considered it as yet. Alderperson Vaughan stated that she feels it is premature to consider the elimination of clothing sales tax at this point, but would be agreeable to re-visiting the issue in one year when more data is available. The Mayor was asked to present the following resolution to the Tompkins County Board of Representatives: Resolution By Alderperson Vaughan: Seconded by Alderperson Blumenthal WHEREAS, the City of Ithaca is aware of the County Board’s deliberations regarding the elimination of sales tax on clothing items worth less than $110, which would result in a significant loss of revenue for both the City and the County, and WHEREAS, the City of Ithaca has suffered a loss of tax revenues in recent years, including the elimination of sales tax on textbooks and the removal of properties from the tax rolls, and WHEREAS, sales tax is paid by permanent residents, students and area visitors, and a decrease in sales tax revenue will result in an increase in the more regressive property tax, and WHEREAS, the City of Ithaca is moving forward with development plans that will provide additional revenues for the City and offer local consumers more choices, and WHEREAS, it is documented that the lack of consumer choice in our County has resulted in a leakage of millions of dollars of sales to adjacent counties, and WHEREAS, no such documentation exists to determine the effect on consumers of a clothing sales tax in our County when some adjacent counties do not have such a tax, and WHEREAS, the development in both the City of Ithaca and the Village of Lansing of shopping alternatives similar to those that exist in adjacent counties will enable the County to determine what, if any, leakage still occurs due to the existence of the clothing sales tax; now, therefore, be it RESOLVED, That the Common Council of the City of Ithaca urges the County Board to not take any action on the elimination of the clothing sales tax in our County until such time as the data is available to make a more informed decision, and, be it further September 14, 2000 3 RESOLVED, That if the County Board feels compelled to act on this matter at this time, that it consider delaying the implementation date of the tax elimination to March 2003. Carried Unanimously Possible Disposition of Property Executive Session By Alderperson Blumenthal: Seconded by Alderperson Vaughan RESOLVED, That Common Council adjourn into Executive Session to discuss the possible disposition of property. Carried Unanimously Reconvene: Common Council reconvened into Regular Session with no formal action taken. ADJOURNMENT: On a motion the meeting was adjourned at 6:35 p.m. Julie Conley Holcomb, CMC Alan J. Cohen, City Clerk Mayor