KINGSTON – Ulster County Executive Jen Metzger, State Senator Michelle Hinchey, and Assemblymember Sarahana Shrestha recently announced the introduction of the Ulster County for Fair Taxes Act — state legislation that would give Ulster County a new tool to increase tax equity and reduce the burden on working families and homeowners.
The legislation (S.10532/A.11460) would authorize Ulster County, through Home Rule, to create a local income-based surcharge on high-income earners. This authorization must first pass the State Legislature; if approved, Ulster County would then begin the local law process through the County Legislature. Only after that process is complete could the surcharge be enacted.
The proposal was developed by County Executive Metzger and her executive team earlier this year, and is supported by Senator Hinchey and Assemblymember Shrestha, who recognize its potential to meaningfully advance tax fairness for residents.
The surcharge, which applies only to Ulster County residents, would apply solely to income above $200,000 for single filers and above $400,000 for joint filers. It would function as a 16.75% surcharge on the state income tax paid on income above those thresholds — not to total income. This would work out to be an approximately 1.5% tax on income above the threshold.
To illustrate: A typical single filer earning $300,000 pays an estimated total amount of $20,550 in New York State income tax. Under this proposal, the state income tax generated on the income above the $200,000 threshold ($100,000) would be $8,750, and that amount would be subject to the 16.75% surcharge. That surcharge amount — $1,465 — would be paid to Ulster County. (Note that the New York State tax rate is dynamic and varies based on income level.)
“The deck is really stacked against working families and people living on fixed incomes, who can barely keep up with the rising costs of basic necessities, and on top of this have to shoulder a disproportionate share of the cost of funding essential government services,” said County Executive Jen Metzger. “We are asking the state for the authority to pursue an additional revenue option based on ability to pay, using the existing state income tax framework so it is easy to administer and fair to taxpayers. I want to thank Senator Hinchey and Assemblymember Shrestha for partnering with us to move this forward at the state level, as well as Ways and Means Chair Jeff Collins and Majority Leader Abe Uchitelle, who are sponsoring the Home Rule Request in the County Legislature. The extreme inequality in this country is out of hand, and this is a modest step we could take locally to contribute to a fairer system.”
“We live at a time of unprecedented income inequality in which the ultra-wealthy pay lower tax rates than the average person, while seniors and working families struggle to afford their mortgages, utility bills, healthcare, and food,” said Senator Michelle Hinchey. “I’ve heard from neighbors across Ulster County who are doing everything right — from seniors living responsibly in their golden years to families working hard day in and day out — and yet they’re still struggling to afford to live here. We need creative solutions to protect our residents from being priced out of their community. We’ve put this legislation on the table to provide Ulster County with a new tool to make the local tax system fairer, make life more affordable for our neighbors who need relief most, and make it easier for people to stay in our community. I’m grateful to Assembly Member Shrestha, County Executive Metzger, and the Ulster County Legislature for their partnership on this issue at the local level.”
“When the wealthy don’t pay their fair share in taxes, the burden is unfairly borne by those who have less,” said Assemblymember Sarahana Shrestha. “This is exactly what we see happening in our state, as the number of millionaires and corporate profits grow while households making under $75,000 leave the state in droves; it’s also what we see happening in our localities, which are having to rely on increases on regressive taxes, such as sales and property taxes, to fund basic needs. The matter has been made infinitely worse by a federal administration that’s made severe cuts in healthcare and SNAP benefits, all the while giving a tax break that disproportionately benefits the rich. While I firmly believe New York State must tax the rich and invest in programs that increase the quality of life for New Yorkers, I’m proud to have the Hudson Valley lead on the issue of wealth disparity, as I partner with County Executive Jen Metzger, the county legislature, and Senator Hinchey to do what’s right: make those who have more to spare pay a fairer share so that those who don’t aren’t breaking their backs.”
“In Washington, they’re handing tax breaks to billionaires and taking food off people’s tables. In Ulster County, we’re asking the highest earners to pitch in a little more so working families can finally catch a break,” said Majority Leader of the Ulster County Legislature Abe Uchitelle. “That’s the choice.”
“Ulster County, like many counties, relies heavily on regressive forms of taxation — particularly sales and property taxes — to fund county operations and essential services. This proposal would establish a new, progressive revenue stream for the county and help shift more of the tax burden onto those with the greatest ability to pay, rather than relying so heavily on working families and homeowners,” said Ulster County Legislator and Ways and Means Chair Jeff Collins. “Since 2012, the Legislature has not raised property taxes on residents, and because inflation has steadily increased the cost of goods and services over that time, the real property tax burden on residents has effectively declined year after year. In other words, while the nominal tax rate has remained unchanged, its relative cost to taxpayers has decreased over time. This proposal will help protect homeowners and working families from future property tax increases while ensuring the county can continue delivering the essential services residents rely on.”
Ulster County depends on property and sales taxes to fund essential County services, an approach that disproportionately burdens lower and middle-income residents. Today, 41% of renters and homeowners in Ulster County are severely cost-burdened, spending half their income or more on housing, and approximately one-third of working households struggle to afford basic necessities. By contrast, high earners pay a smaller share of their income through these regressive taxes. By authorizing a progressive, income-based local revenue option, this legislation recognizes that tax fairness means basing taxes on ability to pay.
