BILL NUMBER: S10188
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to repeal section 2 of chapter 316 of the laws of 2025, relating
to extending the authority of the county of Orange to impose an addi-
tional rate of sales and compensating use taxes and provides for the use
of the tax funds collected, relating to the use of tax funds collected
by the county of Orange
 
PURPOSE:
To allow Orange County to share the full 3 41% county sales tax with
municipalities.
 
SUMMARY OF PROVISIONS:
Section 1: Repeals Section 2 of chapter 316 of the laws of 2025, which
relates to how Orange County can spend the additional sales tax funds
collected.
Section 2: Sets effective date.
 
JUSTIFICATION:
Chapter 316 of 2025 allows Orange County to extend an additional 41% of
one percent in sales tax, on top of the 3% they are already allowed to
charge.
In January 2026, the Orange County Attorney finalized the County's Sales
Tax Sharing Agreement for approval by the County and the three cities-
Newburgh, Middletown, and Port Jervis. Although the Agreement is
executed only among the County and the three cities, the towns and
villages also receive a portion of the County's sales tax revenue under
its terms. Distributions to towns and villages are based on population
from the 2020 Census. Following legislative approval by all parties, the
fully executed Agreement was submitted to the State Comptroller on
February 17, 2026, as required by law.
The Comptroller's Office notified the County that the additional 41% of
sales tax revenue could not be shared with local municipalities. The
Comptroller explained that the legislation authorizing this additional
41% explicitly prohibits sharing it with municipalities. Orange County
requested this legislation to allow it to share the full 3 41% county
sales tax with municipalities.
 
LEGISLATIVE HIS ORY:
New bill
 
FISCAL IMPLICATIONS:
None to the State
 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on and after January 1, 2026.