A new agreement is said to have a significant and immediate impact on the finances of two Dutchess County cities.  'This agreement recognizes the symbolic relationship our local governments have with Dutchess county and provides for the equitable and fair distribution of sales taxes revenue between us all,' says Poughkeepsie Mayor Rob Rolison.

Sales tax distribution

Though still subject to approval by the Common Council, the Dutchess County Legislature, and then a ratification by the Office of the New York State Comptroller, a new 10-year agreement regarding the distribution of sales tax by the county to cities and towns has been reached by both Poughkeepsie and Beacon.


As noted by city officials, the new agreement will increase the sales tax revenue that is received by the city by approximately $2.4 million beginning next year.  It also provides an immediate payment of $3 million, and over the next ten years, increases in percentage distributions to the cities.

Financial implications

City of Poughkeepsie Finance Commissioner Dr. Brian Martinez shared his sentiments on the importance of these negotiations on the future of the city.

Based on changes in consumer behavior due to internet sales, it’s not unreasonable to expect continued growth in sales tax revenues during the coming years. In the first year of the new agreement, the City of Poughkeepsie will receive an increase of $2.4 million. The city’s 2023 share is 5.41 percent. This is a 20 percent increase compared to our current 4.5 percent share.

He went on to detail that this new agreement will guarantee that the funds will be equally applied to the cities, towns, and county, with next year's 4% increase generating hundreds of thousands in new revenue every year where there is growth in sales tax revenues.

County Executive Marc Molinaro shared similar sentiments, explaining that the agreement is also an important component of the Deficit Reduction Plan the city put into place in 2017.

With the approval of this agreement by the legislative bodies, we will enter the final phase of our multi-year plan to retire the city’s fund balance deficit – a deficit that reached as much as $13.2 million as of the end of 2015, and which currently stands at about $8 million.

To learn more about the agreement, and the financial impact it will have on the surrounding area, find the complete coverage here.

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