Survey: sales tax option is best

CANTON — A recent survey by a St. Lawrence University student found more people favor an increase in the county's 3 percent sales tax than a property tax hike.

As part of his summer research project, Matthew E. Dodge, 21, of Meredith, N.H., asked 101 people whether they preferred a 1 percent increase in sales tax — raising the combined state and county sales tax from 7 percent to 8 percent — or a 15 percent increase in property taxes.

Mr. Dodge conducted his survey at Department of Motor Vehicles offices in Gouverneur, Massena, Ogdensburg and Canton. Of those surveyed, 80 said they preferred a sales tax increase, 11 said they favored a property tax increase, seven said neither and three left their surveys blank.

"I would have liked to have gotten more responses," Mr. Dodge said. "But although there were only about 100 responses, it was pretty telling on what people thought about the property tax versus sales tax."

He said the survey is only a small portion of his project, which was approved by his adviser, Peter W. FitzRandolph, an economics professor at St. Lawrence. Mr. FitzRandolph chairs the county Legislature's Finance Committee.

Mr. Dodge said he has researched both forms of taxation and will combine the survey results with his research findings in his final project paper.

"Sales tax is widely considered to be regressive," he told lawmakers Monday during a presentation about the survey. "It affects more low-income people versus higher-income people because low-income people tend to spend more in sales tax. Property tax affects people proportionately to their income."

About a third of survey respondents who favored sales tax were age 50 or older and own property, he said.

"I would have thought neither would win hands-down," said Legislator Frederick S. Morrill, D-DeKalb Junction.

"Property tax came back again and again as very unpopular," Mr. Dodge said. "You can easily see on your tax bill how much you're spending on property tax, as opposed to sales tax, which kind of creeps up on you. I don't think people realize how much they spend on sales tax."

Lawmakers have considered raising the sales tax as a way to bridge an estimated $10 million budget gap in 2011.

Mr. Dodge said he will share his research paper with the Legislature later this year.