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Sunday, 09/30/2007 9:22:21 AM

Sunday, September 30, 2007 9:22:21 AM

Opposition to 'jail' tax is growing.
From: Watertown Daily Times (Watertown, NY) Date: October 6, 2005

Byline: Corey Fram

Oct. 6--Two more segments of the business community have picked sides in the debate over raising the county's share of the sales tax to pay for the new St. Lawrence County jail.

The Greater Massena Chamber of Commerce and Thomas W. Scozzafava, a partner in the discount store chain Wisebuys, opposed the proposal to increase the county's 3 percent sales tax by one percentage point to boost revenue to quickly pay off the estimated $30 million jail. The chamber recently gave the county a copy of a resolution passed Sept. 22 by its board, and Mr. Scozzafava sent a letter Wednesday to the media detailing his opposition.

"We felt that an increase in the tax would take a tax advantage that St. Lawrence County has away from the county," chamber Executive Director Paul A. Haggett said.

The chamber and Massena Town Council oppose the increase because their community relies on Canadian shoppers spending money at the St. Lawrence Centre mall and Wal-Mart near the port of entry. They also don't want to boost costs for the Alcoa and General Motors plants.

The sales tax in the county is 7 percent. The state keeps 4 percent. Neighboring counties have raised their share by three-quarters of a percentage point to bring their tax to 7.75 percent.

Mr. Scozzafava cited relatively low interest rates on long-term debt financing and the extended life of the jail as reasons to spread repayment across more than five years, as proposed by the tax-increase plan.

"It is neither sound economics nor fair to burden today's taxpayers with the entire cost of a project that should serve the community for many, many years to come," Mr. Scozzafava said in a letter that includes his father, William M.

Mr. Scozzafava suggested the county raise the sales tax a quarter of a percentage point and pay the debt over about 20 years. Mr. Scozzafava is the brother and business partner of state Assemblywoman Deirdre K. Scozzafava, R-Gouverneur.

Mr. Haggett suggested the county offset the cost of the jail with its share of the national settlement with the major tobacco companies or money it will get from a state gaming pact with the St. Regis Mohawk Tribe.

The Potsdam Chamber of Commerce has also opposed an increase. The county Chamber of Commerce took no action at a recent meeting but seems willing to endorse a hike.

County legislators aren't expected to debate the sales tax increase until next year. Legislator Alex A. MacKinnon, R-Fowler, proposed the increase as a way to avoid interest payments he thinks will increase the cost to more than $57 million.

To see more of the Watertown Daily Times, or to subscribe to the newspaper, go to http://www.wdt.net.

Copyright (c) 2005, Watertown Daily Times, N.Y.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

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