Reuters: Westchester’s AAA credit rating supported by higher property taxes

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Reuters reported today that Westchester County’s enviable AAA credit rating is due to its higher and more secure property tax revenue. Rockland County, on the other hand, which is going through a drastic fiscal realignment, relies more on sales taxes.

Nassau and Suffolk rely similarly on sales taxes, which are more volatile and have suffered in recent years, Reuters reports. Reserves have fallen accordingly.

Westchester has reserves of $110 million in fiscal 2012, Reuters reports, down from $177 million in 2006. It has an advantage shared by no other county in the state: municipalities send up 100 percent of taxes regardless of how much they collect. Rockland faces a $21 million deficit.

Read a recent Journal News/LoHud.com story on credit downgrades for municipalities.

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  1. Translation for the Ignoranti on

    These “ratings” have absolutely nothing to do with how well a government is run, but rather has everything to do with the dictatorial power of property tax demands and collection.