05/15/10 White Plains sales tax increases in June

The Common Council this week authorized a quarter-percent sales-tax increase, which the city will start collecting on June 1.

The city sales tax will rise from 2.25 to 2.5 percent, on par with Yonkers, Mount Vernon and New Rochelle, which all have a combined state and local sales tax of 8.375 percent.

The extra money collected — expected to be $4.5 million to $5.5 million annually — will go into a new tax stabilization fund, which can only be tapped to pay down property-tax increases higher than 2.5 percent, fund unforeseen emergency expenses and fill drops in major revenue sources. Approval by a supermajority of the council would be required before any of the funds are used.

The new money won't have an impact on next fiscal year's proposed tax increase, which could be as high as 18.9 percent, but could help shore up budgets in future years.

"It's just good practice to have this," said city Finance Commissioner Michael Genito. "It's got the force of law behind it that ensures it's going to be a good financial practice."

The city requested the increase in February, and the state Legislature and Gov. David Paterson finalized the change last week.

Mayor Adam Bradley, in his former role as a state assemblyman, blocked former Mayor Joseph Delfino's efforts to increase the sales tax last year, after supporting a similar increase in 2008.

Council President Thomas Roach said he was pleased the new sales tax money would help replenish the city's drained reserves and smooth out future property tax increases.


As the fiscal year 2011 budget process nears an end, decision night, when the council sets out its blueprint for the final budget, was pushed from today to Monday.

Genito said he requested the delay to allow his staff to crunch a large amount of new information on city contracts and tax revenues coming into his office.

In the meantime, Bradley's administration will have more time to garner concessions from police and firefighter unions.