Orange County Municipalities to Receive Restored Sales Tax Revenue Following New State Law
Orange County municipalities will continue receiving their share of local sales tax revenue after Governor Kathy Hochul signed legislation restoring the county's longstanding revenue-sharing formula.
The new law resolves an issue discovered earlier this year when the New York State Comptroller's Office determined that Orange County had been distributing a portion of its additional local sales tax revenue to municipalities without the specific statutory authority required. Without legislative action, cities, towns, and villages across the county stood to lose millions of dollars in funding.
The legislation, sponsored by Senator James Skoufis and Assemblyman Chris Eachus with bipartisan support from the Orange County delegation, authorizes the county to continue sharing the additional 0.75% local sales tax with its municipalities. Approximately $5 million withheld during the first quarter of 2026 will now be reimbursed to local governments.
For local communities, the restored funding helps support essential municipal services and capital improvements, including infrastructure, public safety, planning, and economic development initiatives. Stable municipal finances also help reduce pressure on local property taxes while allowing communities to continue investing in projects that enhance quality of life and strengthen local business districts.
For REALTORS® and property owners, healthy municipal budgets play an important role in maintaining vibrant communities and supporting long-term real estate values. Investments in infrastructure, downtown improvements, and public services can make communities more attractive to residents, businesses, and future development.
Municipal financial stability is an important component of a healthy real estate market. By restoring Orange County's sales tax sharing program, local governments can continue funding the services and community investments that support residents, businesses, and long-term economic growth.
