New York’s local government leaders are urging state lawmakers to overturn a sales tax law that diverts more than $ 59 million from municipalities.

The push comes as lawmakers this week in Albany are expected to approve a state budget, setting spending and revenue policy for the next 12 months.

At stake for local governments is a new sales tax law that leaves them less sales tax money. Sales tax is a major driver of local revenue for most New York counties, helping to keep property taxes low while also funding services.

Local government officials also cite the strain the pandemic has placed on their finances over the past year.

“Strong local governments make the state stronger, and as New York recovers from the economic devastation caused by the coronavirus pandemic, it is imperative that those of us who have served on the front lines in responding to the crisis are given the resources and flexibility we need for a full recovery, ”said Jack Marren, chairman of the Ontario County Oversight Council. “The time has come for the state to invest in our communities with state resources, without diverting locally generated revenues for policies and programs.

County governments share about 25% of their tax revenues with cities, towns, and school districts in New York City. Local governments shared about $ 2 billion in local sales tax revenue.

“Intercepting local sales tax revenue to fund the state’s AIM program makes no sense. Under this structure, villages and towns that receive AIM-related payments primarily pay for their own. own state aid, “said Binghamton Mayor Rich David. “This irresponsible policy represents the state shirking its financial obligations and passing them on to local taxpayers. We urge the state legislature to end this unreasonable practice of diverting funds intended for local governments to help balance the state budget. “