Critics: Plans to cut energy tax would impact property tax

Proposals to eliminate Suffolk's home energy tax could double the county's general fund property tax to make up the difference in potential lost revenue, Budget Review director Gail Vizzini said Tuesday.

Such a trade - sales taxes for property taxes - would reverse 20 years of county policy that de-emphasizes property taxes.

But the point may be moot because the pending legislation to reduce or hold a referendum to eliminate the 2.5 percent sales tax on home energy is likely dead on arrival unless the bills' sponsors, Legislators Edward Romaine (R-Center Moriches) and Jay Schneiderman (I-Montauk) propose corresponding cuts to county spending, lawmakers said. The bill was tabled and remains in committee.

Vizzini told the Budget and Finance Committee that the average Suffolk taxpayer pays $90 in county general fund property taxes and $104 in home energy sales tax. In 2009, Suffolk collected $52.1 million from the home energy tax.

Suffolk businesses pay the standard 8.625 percent sales tax on energy.

Schneiderman and Romaine refuted Vizzini's assertion.

"I'm not suggesting that we increase property taxes," said Schneiderman, whose bill calls for lowering the home energy tax rate to 1.5 percent. "I'm looking for ways to make up that difference."

Romaine, whose bill calls for a referendum on whether the 40-year-old sales tax on home energy should be eliminated, said equating a sales tax decrease with a property tax hike is "a false assumption." He said voters should decide directly on their own taxes.

"There are many decisions in this county that should be in the hands of the people," he said.

Presiding Officer William Lindsay (D-Holbrook) said Romaine and Schneiderman should identify what programs they would eliminate before cutting $54 million of county revenue this year.

"If they put in some serious offsets and identify where they'd get the money from, then I'd certainly look at it more seriously," Lindsay said.

The committee's chairman, Legis. DuWayne Gregory (D-Amityville), said the county does not have a way of making up revenue that would be lost should the tax be eliminated.

"We're not going to raise park fees and nobody wants to raise property taxes," he said. "There are very few avenues to raise revenues."County Executive Steve Levy said lawmakers should wait until budget negotiations to eliminate any taxes or fees.

"The best way to remove a fee is to do it during the budget process, where the proponent can offset it with cuts to maintain a balanced budget," Levy said.