Town Renews Push for Review of County Sales Tax Sharing Formula

By JOSHUA YOUNGQUIST
ONEONTA

The Town of Oneonta is again urging Otsego County leaders to revisit the county’s decades‑old sales tax sharing formula, arguing that the system—unchanged since 1991—no longer reflects the realities of where revenue is generated or the strain placed on local infrastructure. During an August 20 meeting of the county’s Administration Committee, Oneonta Town Supervisor Will Rivera and members of the town board laid out their case for a formal, countywide review.

Rivera said the town’s request is not about demanding an immediate change, but about finally examining a formula that was supposed to be revisited every four years.

“It is an archaic formula,” he said, “and…all municipalities in our county deserve to have some more information and conversation around that formula, because times have changed from 30 years ago.”

The current distribution model dates back to a 1991 agreement between the county and the City of Oneonta. Under that structure, the city first claims its state‑allowed preemption share, and the remaining revenue is distributed based on property assessments. Town officials argue that this approach disproportionately benefits wealthier districts and fails to account for where sales‑tax revenue is actually generated.

Rivera confirmed that the formula has not been reevaluated in more than three decades.

“That is correct,” he said, when asked whether the agreement had gone untouched since 1991.

The town’s frustration is compounded by the fact that Oneonta hosts the county’s largest commercial corridor—Walmart, Home Depot, TJ Maxx, Price Chopper, and other major retailers—yet receives only a fraction of the revenue those businesses generate. Rivera noted that the town received roughly $740,000.00 in sales‑tax revenue last year, a number he believes is far out of proportion to the town’s contribution.

“We generate a huge share of that and we don’t even know what that share is,” he said.

Town officials emphasized that Oneonta’s rapid growth has placed significant pressure on local services. Aging water and sewer systems need upgrades. The highway department is short‑staffed. Equipment replacement and sidewalk maintenance have become increasingly difficult to keep up with. Meanwhile, only four full‑time staff manage the town’s development workload.

“We only have one water operator…what if something happens and we don’t have another one?” Rivera said, adding that the town’s small highway crew is stretched thin as development expands.

Residents often assume the town is flush with sales‑tax revenue because of its commercial footprint, Rivera said, but officials must explain that the formula prevents the town from retaining most of what is generated locally.

“They’re just really shocked that this disparity exists with how much we are supporting all,” he said.

County representatives acknowledged that the issue is complex and any change would affect all municipalities. Some districts could see increased taxes while others might benefit from a redistribution. They also noted that the city must be involved, as preemption agreements require both city and county consent.

Rivera said he understands that revisiting the formula may generate pushback from other municipalities. Still, he believes the conversation is overdue.

“I would be crazy not to say that [pushback] would be a response…but you should be doing the opposite of me as well,” he said. “This isn’t asking for one over the other—it’s asking for us to get the information and have a conversation once we have those numbers.”

He added that the Town of Oneonta is not simply pointing out problems and that it is actively working to secure resources.

“We applied for over $1.5 million in funding…probably the most out of any municipality this CFA [New York State Consolidated Funding Application] round,” Rivera said. “We’re focused on doing the work as well.”

Rivera said the town’s goal is straightforward: gather updated data, understand how the formula functions today and determine whether it still serves the county fairly.

“Maybe it isn’t working right…maybe it simply has to stay how it is, which is okay as well,” he said. “But the Town of Oneonta and all of Otsego County deserve that answer.”

With major economic drivers like Cooperstown All Star Village and SUNY Oneonta contributing seasonal boosts to local businesses, town officials believe a modernized formula could help ensure that the infrastructure supporting that growth is sustainable.

For now, the town awaits the county’s next steps and hopes that, after 30 years, the conversation finally begins.