2.5% Home Energy Tax is History

Garden City residents received some good news in the mail this week, a bright yellow postcard from Legislator Vincent Muscarella, R-West Hempstead, and County Executive Edward Mangano, R-Bethpage, announcing that the 2.5 percent home energy tax imposed by the previous county administration has been repealed.

The tax that the county legislature approved last February and implemented in June 2009 was imposed on all residential energy sources – LIPA electric, oil, natural gas, steam services and even coal, propane and firewood. It officially expired and was removed from utility bills as of June 1. 

Elected on a platform to reduce taxes and rein spending, Mangano repealed the tax moments after he took office on Jan. 1. The action supports his campaign goals of ridding Nassau of wasteful spending, freezing and fixing what he calls a broken tax assessment system and creating jobs.

Residents in town reacted to the news. "I think it's very nice that a politician did what he said he would do," said Garden City attorney Saul Kobrick.

Local businessman Carmine Fischetti, owner of Carmine's Haircutter's on Seventh Street in Garden City, shared the same sentiment. "It's about time somebody did something they said they would do. I respect that," said Fischetti.

Garden City resident Cathy Wood concurred, "I think it's great that a politician adheres to his campaign promises. He was elected on a platform to reduce taxes and this is a step in the right direction."

As with any budget, taking something away has its repercussions. The repeal eliminates approximately $38 million in annual county revenues.

"At a time when families are forced to cut back their home budgets, government must do the same," Mangano said. "That is why I cut the county payroll by $22 million, programs and equipment by $10.5 million and took other actions to replace this loss of revenue."

Garden City resident Mike Marino wondered what would be eliminated. "Taxes are high. Yet, I'm sure it was a difficult decision, there aren't that many good answers," he said. "It's tough but Long Island needs to keep taxes down."

Mangano stands by his position and says the last option should be a tax hike for struggling families and seniors trying to make ends meet.

"For this reason I repealed the home energy tax, the equivalent of a 5 percent property tax hike. I also revised our county multi-year plan to eliminate a 13 percent property tax hike planned by the Suozzi administration," he said.

Legislator Muscarella says he is grateful to all the residents who joined the petition drive.

"The best way to fill budget gaps is to prevent them by cutting spending and running the government more efficiently. We now have the opportunity to do that," Muscarella states on the legislature's web site.

His Democratic counterparts, however, criticized Mangano's move, challenging him to be more specific on how to recoup lost revenue. 

"Democrats created the home energy tax, so naturally they are angry that their law has been repealed," Mangano said. "Nassau County has fiscal problems far greater due to a broken assessment system. I am working to implement structural reforms to our assessment system so that we can begin to reduce the $250 million in wasted tax dollars each year that are associated with the system."

Nassau County is one of the most highly taxed places in the country and is facing a deficit that could grow as much as $400 million in 2011. So, for some, Mangano's repeal is welcome news.

"When I make promises, I keep them. It's that simple," Mangano said.