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Kingston's Comptroller, John Tuey, is cautioning residents about a potential property tax increase to address the city's 2026 budget needs. Tuey expressed his concerns to the Daily Freeman, noting significant stress on the budget due to a 6% decline in sales tax revenue compared to last year. Sales and property taxes are crucial revenue sources for Kingston, and the shortfall is causing budgetary strain.
During a meeting with the Common Council’s Finance and Audit Committee, Tuey highlighted the challenges posed by decreased sales tax revenue and rising employee benefit costs. He emphasized the need to find solutions to offset the revenue loss and manage the city's financial obligations.
Despite recent improvements in sales tax revenues, which have rebounded to within 2.26% of last year's figures, the city remains cautious. Earlier this year, Kingston experienced significant fluctuations in sales tax revenues, raising concerns about potential tax hikes. The city had anticipated a $180,000 increase in sales tax revenue for the current year's budget.
Ulster County Comptroller March Gallagher noted that while increased sales tax revenues can indicate economic growth, they may also reflect inflationary pressures. Kingston officials are closely monitoring the situation to determine future financial strategies.