The battle that raged through summer and fall between Ulster County and Assemblyman Kevin Cahill over paying for the Safety Net welfare program and the county’s request to continue to levy an additional 1 percent in sales tax appears to be resolved. However the ramifications of that fight are only just beginning to be felt.
At the stroke of midnight on Dec. 1, the county’s authority to impose the additional 1 percent sales tax will expire. As a result, sales tax in Ulster County will drop to 7 percent from 8 percent. Of that, 3 percent is levied by the county and 4 percent is levied by the state.
County businesses, which must collect the tax on all taxable sales, services, deliveries and uses in the county, were notified late last week by the state Department of Taxation and Finance of the change to the sales tax rate.
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