An Albany Common Council resolution seeking the state Legislature’s approval for the city to institute an earnings tax on nonresidents who commute to and work in the city appears dead before its introduction on Monday evening.
Albany Mayor Dorcey Applyrs said in a statement released Monday afternoon that the nonresident commuter tax does not have the necessary support at the state level to move forward.
“While a commuter tax is not a viable solution to our budget challenges, the discussion raises important questions that deserve our attention,” she said. “The Capital City cannot thrive without shared responsibility and financial support from those who rely on our resources and services.”
The resolution calls for imposing a tax of one-third of one percent. It states the tax could provide “a fair and sustainable contribution” toward the cost of municipal services nonresidents receive while working in the city, such as police and fire protection, emergency services, transportation infrastructure and sanitation.
But public officials from across the Capital Region blasted the proposal in press releases over the last couple of days.
Saying the city is facing “a serious fiscal crisis,” Applys recently proposed a 2027 budget that includes a 15% property tax levy increase, the creation of a new city sales tax, millions in cuts, higher fees and a new “embellishment fee” for tax-exempt properties.