Tax Increase

A one quarter of one percent mortgage tax would have generated more than $14 million for county coffers over the past five years—money that would have come in handy during the current downturn in home sales.

Tuesday evening Legislator Mary Ellen Odell of Carmel told her colleagues and an audience of 50 people gathered for the regular monthly meeting of the Putnam Legislature at the historic Putnam Courthouse: “Imagine the benefit when the economy turns around!”

Not everyone felt the same, and the measure narrowly passed by a 5-4 vote.

Legislator Sam Oliverio called the implementation of a mortgage tax a “good idea for offsetting property taxes.”

Legislator Dini LoBue of Mahopac disagreed: “I’d much rather raise sales tax by a quarter of one percent, which would affect everyone.”

Legislator Mary Conklin, who voted in favor, called on her colleagues to “deposit funds collected from the tax in a special account that will be used to stabilize property taxes. I object if the money is placed in a general fund and used for everyday expenses.”

Tony Hay of Southeast, who chairs the legislature, voted against: “The rate may be .25 percent today but I see a lot more in the future. Besides, the twin to this levy is the transfer tax, and if finances continue on their downward trend and additional funds are needed when a person sells his or her home, the county will get another bite of the apple.”

Following the marathon meeting Hay told the Courier: “People are being taxed to death. The American dream is to own a home. Many people are being forced to refinance their homes as a result of the poor economy. This is another way of trying to get into their pockets. I don’t agree with that philosophy.”

Legislator Vincent Tamagna of Cold Spring called the tax a “no-brainer. For us not to pass this legislation would be shameful.”

Legislator Tony Fusco of Mahopac Falls disagreed, since the tax “penalizes people moving into our county. This is another tax dressed up in a fancy name.”

Odell said while neighboring counties of Westchester, Dutchess, Orange, and Rockland collect mortgage taxes that benefit the county, Putnam does not.

Odell explained that a .25 percent addition in taxes would cost the buyer $250 per $100,000 of mortgage that would be amortized over the life of the bank loan. “This is pennies to the average mortgage holder, while the county would reap great benefits from such additional revenue by stabilizing property taxes, offsetting budget deficits, and preparing for the future,” she said.

Voting in favor of the legislation were Legislators Conklin, Odell, Oliverio, Othmer, and Tamagna while casting no votes were Legislators Dan Birmingham, Fusco, LoBue, and Hay.

The addition of any tax must be approved by the New York State Legislature. Odell promised to contact State Senator Vincent Leibell, Assemblywoman Sandy Galef, and Assemblyman Greg Ball to seek their support.

Raise Mortgage Tax Rate?

Yea
Mary Conklin
MaryEllen Odell
Sam Oliverio
Richard Othmer
Vincent Tamagna
Nay
Dan Birmingham
Anthony Fusco
Dini LoBue
Tony Hay