ALBANY – Governor Kathy Hochul on Friday signed legislation to restore Orange County’s sales tax distribution rate to its municipalities, saving them from losing millions of dollars.

Hochul, who received the bill a week ago, had 10 days to sign the bill into law.

In May, it was revealed by the State Comptroller’s Office that the county had improperly distributed sales tax revenue to municipalities. The county has been sharing 3.75 percent of its sales tax revenue for more than a decade, though it is authorized to share only 3 percent.

“This mess was caused by the county administration, caught by the state comptroller, and fixed by our bipartisan state legislative delegation,” Senator James Skoufis (D, Cornwall) said. “It was critical we did so; absent the fix, property taxes would’ve skyrocketed, and local services would’ve seen deep cuts. As long as I’m in office, I’ll always put our taxpayers first. I thank the Governor for expeditiously signing this important bill.”

The County’s oversight cost municipalities $5 million in the first quarter, but those funds will be reimbursed to cities, towns, and villages.

The legislation arrived at Hochul’s desk after it was passed in the State Senate and then the Assembly just over a month ago. Skoufis and Assemblyman Chris Eachus (D, New Windsor) were the prime sponsors of the bill in Albany, with the county’s other lawmakers – Democrat and Republican, including Jonathan Jacobson (D, Newburgh), Paula Kay (D, Rock Hill) and Rob Rolison (R, Poughkeepsie) also backing the measure.

According to David Rabbitts, Eachus’s Chief of Staff, a state law was passed that allowed Orange County to impose sales taxes at 0.75 percent above the 3 percent rate. However, each bill that passed to authorize and extend this authorization also states that it can only be used “solely for county purposes and shall not be subject to any revenue distribution agreement.”

Rabbitts said if the legislation had not changed, the County would have to stop distributing the extra 0.75 percent. Eachus and Skoufis introduced state legislation to amend this section of the law, removing the restriction that limits the funds to county use.