County officials announce deal on 1/8% sales tax hike to fund septic systems and sewer expansion

A bill to amend the Suffolk County Water Quality Restoration Act has been introduced in both chambers of the State Legislature to effect a 50-50 split of new water quality restoration fund revenues among wastewater treatment facilities and individual septic system projects.

The bill, sponsored by Assembly Member Fred Thiele and State Senator Monica Martinez, will alter the legislation enacted last year that allowed Suffolk County to increase its sales tax rate by 1/8 of a cent to finance the new water quality fund.

The sales tax increase is subject to a mandatory referendum, which is expected to be put before voters in November. 

The tax increase will generate an estimated $3 billion in revenue through 2060, advocates say.

In its original form, the legislation, signed into law by Gov. Kathy Hochul last April, required the revenues raised by the new sales tax, after administrative expenses, to be divided 75% for the installation of advanced septic systems and 25% for the expansion and improvement of wastewater treatment facilities.

That ratio did not have the support of the Republican majority in the Suffolk County Legislature, which rejected local laws advanced by the Bellone administration needed to establish the water quality fund and place the sales tax hike on the ballot last year. Republican legislators objected that too much of the revenue raised by the new 1/8-cent tax was required by the state law to be spent on advanced septic systems and too little on sewer projects.

MORE COVERAGE: Republican county legislators block November referendum on 1/8% sales tax hike to fund advanced septic systems and sewer expansion

Suffolk County Executive Ed Romaine on Monday said an agreement among county and state lawmakers to restructure the distribution of funds “an historic deal that will transform water protection in Suffolk County.”

The Suffolk County Water Quality Restoration Act also authorized the county to extend until 2060 an existing 1/4-cent sales tax, which finances the county’s drinking water protection program. The 1/4- cent sales tax is currently set to expire in 2030. Extension of this tax also requires voter approval.

The pending state law amendment requires 25% of the 1/4-cent sales tax revenue to be apportioned for sewer taxpayer protection. It also requires that some of the amount apportioned for sewer taxpayer protection be transferred to the water quality protection fund and be “dedicated solely to funding individual septic system projects.” The amount  to be transferred to the water quality protection fund will increase year over year from 5% in the fund’s first fiscal year to an eventual 50-50 split in year eight.  It will bump up to 70% in years nine and 10, and then revert back to 50% in year 11 and beyond.

The amendment was introduced in the State Legislature by Thiele and Martinez on Feb. 1.

“I thank Presiding Officer Kevin McCaffrey, Assemblyman Fred Thiele, Senator Monica Martinez and all of our environmental and labor leaders for their work to get us to this day,” Romaine said at a press conference in Hauppauge announcing the deal that will move the water quality restoration act forward. “Today we begin rewriting the environmental history of this great county.”

The initiative grew out of the Suffolk County Subwatersheds Wastewater Plan, which was adopted unanimously by the County Legislature in 2020 after a years-long development and environmental review process. It was hailed by a robust cross-section of environmental, civic and business leaders, who urged county legislators during lengthy public hearings last year to enact the local laws necessary to establish the fund and put the sales tax measure on the ballot. 

The county bills were blocked after a sometimes heated debate between Republican and Democratic legislators who disagreed about the 75%-25% allocation of the water quality protection fund, built into the state legislation, which prioritized advanced individual septic systems over wastewater treatment facilities.