Repeals certain provisions of law relating to the use of tax funds collected by the county of Orange, which permits Orange county to distribute all of its sales and compensating use taxes to the municipalities thereof.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11249REVISED 5/5/26
SPONSOR: Eachus 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 OR GENERAL IDEA OF BILL:
To allow Orange County to share the full 3 44% 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 34% 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.
On April 3, 2026, the Comptroller's Office notified the County Attorney
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 44% County Sales Tax with municipalities.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
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.
STATE OF NEW YORK
________________________________________________________________________
11249
IN ASSEMBLY
May 4, 2026
___________
Introduced by M. of A. EACHUS, JACOBSON, KAY, MAHER, BRABENEC -- read
once and referred to the Committee on Ways and Means
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2 of chapter 316 of the laws of 2025, relating to
2 extending the authority of the county of Orange to impose an additional
3 rate of sales and compensating use taxes and provides for the use of the
4 tax funds collected, is REPEALED.
5 § 2. This act shall take effect immediately and shall be deemed to
6 have been in full force and effect on and after January 1, 2026.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15731-02-6
