Falciglia’s Sales Tax Repeal Resolution Gets Support From State

Press release from the Rockland County Legislature:

April 12, 2021

A Rockland County Legislature resolution that calls for changes to a sales tax requirement that penalizes residents who make out-of-county and out-of-state purchases has now made its way to the Assembly.

The resolution, solely sponsored by Rockland County Legislator Charles Falciglia and unanimously adopted 17-0 on June 2, 2020, called for the repeal of the state’s cross-border sales and use tax requirement. The tax applies to all individual purchases under $1,000. It requires all buyers to pay the difference between the lower sales tax rate of counties where they make purchases if they bring the purchase back to the county they reside in that has a higher rate.

Rockland consumers are particularly vulnerable because many make purchases in neighboring New Jersey. For example, the sales tax rate in Rockland is 8.375 percent. The sales tax rate in Bergen County is 6.65 percent. Under the sales and use tax requirement, Rockland consumers are required to pay the 1.725 percent difference to New York State on their state tax return.

“The tax is patently unfair to Rockland County residents who shop in New Jersey simply based on logistics, as well as a conscience of innocence because they are simply unaware of this unfair tax,” Legislator Falciglia said. “It also makes little sense that even within New York State you have to pay the difference for a purchase made in a county that has a lower sales tax rate than the county you live in.”

The County Legislature’s memorializing resolution has now gained support on the state level, with Assemblyman Mike Lawler sponsoring an Assembly bill, number A06554, calling for the repeal of the law at the $1,000 level. The bill also increases the limit to $2,500 so the tax would only have to be paid on individual purchases of $2,500 or more. Assemblyman Lawler’s District includes Legislator Falciglia’s County Legislative District, with both bordering New Jersey.

“I’m proud to introduce this piece of legislation which will lower the overall tax burden on Rockland County residents,” Assemblyman Lawler said. “Many of my constituents travel over the border to New Jersey to purchase everyday items and it’s wrong that they’re double-taxed on these purchases. We shouldn’t be penalizing people for picking the geographically closer location when buying groceries or clothes. This bill rectifies that issue and will result in a lower tax burden on all Rockland County residents.”

Legislator Falciglia said that the tax came into being in the early 2000’s because sales tax through on-line shopping for out of state purchases was not aggressively being collected. Businesses have since caught up and corrected the deficiency, reducing the loss of revenue to New York State.

“This is also a law that is also unenforceable,” Legislator Falciglia said. “The amount of time and effort to determine if someone failed to report $25 worth of tax over a year is illogical and the antithesis of cost effectiveness. It also makes the law unfair to those who honestly pay, and it needs to be changed.”

This press release was produced by the Rockland County Legislature. The views expressed here are the author's own.