Sklarski proposes property tax cut

by Ralph Schwarz
Niagara Wheatfield Tribune, Nov. 11, 2004

In the light of another increase in county taxes despite close to $15 million in reserves, Niagara County Legislator Danny Sklarski believes that the time has come to provide some form of relief to residents.

“I’m not going to the taxpayers and tell them about a property tax increase when the county is sitting on that balance,” Sklarski said after attending the Niagara County Legislature’s 2005 budget planning session last Monday. “It’s good to have money in reserves, but you can’t tax people over and over again if you have that kind of money. You rather should give it back to the taxpayer.”

At the planning session, Sklarski opposed the 9-percent property tax increase, proposed by County Manager Gregory Lewis. Contending that the county currently maintains a $14.96 million in reserves from its 2003 budget, Sklarski argued in favor of a tax cut from 9 to 4 percent.

“To reduce the taxes by 1 percent, it would take $661,000,” Sklarski said. “If we take out $3.35 million to lower the tax rate to 4 percent, that would still leave the county with more than $10 million in reserves after all other expenses.”

Since the county has turned a $5 million deficit into a surplus close to $15 million in three years, Sklarski said that a tax relief would be not only necessary but also justified.

“Municipalities like the towns of Niagara and Wheatfield are able to maintain a positive fund balance, but are also able to maintain reasonable taxes,” he said. “The county should do the same.”

Responding to Lewis’ concerns that reducing the reserves in favor of a tax cut could jeopardize the county’s financial resources in case of a major catastrophe or legal claims, Sklarski said that his proposal would not drain the county’s funds.

“I’m not saying the county should drain its surplus,” he said. “Instead, the county should maintain its surplus and give something back to the taxpayers.”

With no clear signs of the local economy turning around from its recession, Sklarski pointed out that a 9-percent property tax would rather hurt than help Niagara County businesses.

“There’s no doubt that we live in an economically challenged area,” he said. “We have lots of seniors, unemployed people and empty buildings. Another raise in property taxes is not going to help the small businesses. But there is a way out. A tax relief, in my opinion, is the best way for the people and businesses in Niagara County, and it would be possible without program cuts and layoffs.”