Erie County cuts property taxes, eliminates winter sales tax on home energy bills

For the first time in more than 20 years, the Erie County Council and administration have signed an agreement to reduce the amount of property taxes the county collects from taxpayers.

Additionally, the legislature and county executive Mark Polonkaerts negotiated terms that exempted all sales tax on homeowners’ utility bills during the coldest months of winter, December, January and February. This includes taxes on everything from electricity and natural gas to propane, kerosene, wood and coal.

Congress is expected to vote unanimously in favor of repealing the residential energy tax during its final session on Thursday before recess in August.

Based on the agreement reached by all sides, next year’s budget will reduce property taxes by $1 million. This does not mean that all county residents will experience a reduction in county property tax bills. Considering the $2 billion budget, the rate of decline is modest. However, this means more residents are likely to experience a stabilization or decrease in their property tax bills compared to the last eight years, when county tax levies increased by 2% to 5%.

Republican lawmakers in Congress estimate that the county would give up about $8.5 million in estimated tax revenue next year under the deal in exchange for raising property taxes by an average of $10 million a year.

Perhaps equally important to county residents would be to eliminate all sales taxes on household utility bills during the coldest three months of winter, when utility bills typically soar. The state no longer imposes a sales tax on residential electricity and home heating fuel. However, the county charges him a sales tax of 4.75%.

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