Ulster County 2025 Sales Tax Sharing Uncertainty

A new sales tax revenue sharing agreement was approved by the County Legislature and the City of Kingston Common Council. The new sales tax agreement went into effect on March 1, 2026, and it will be in effect through February 28, 2031. It increases the ordinary amount that the County shares with the towns and villages from 3% of total sales tax collections to 3.5% of collections, with some additional caveats that can allow a reduction to 3%. The new agreement also calls for the County and City of Kingston to meet and discuss an additional distribution of up to 12% of the amount collected above the County’s annual sales tax budget with the towns and villages situated within its borders.

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