As proof that Erie County is experiencing the same effects of the global and national recession, Erie County Comptroller Mark Poloncarz reported to local cities, towns and villages that a semi-annual County mortgage tax revenue distribution being made to them today is $1.65 million less than the same period in 2008. The total revenue distribution is 22.15% lower than the same period in 2008.

Each year the County makes two distributions of mortgage tax to the three cities, 25 towns, and 16 villages in Erie County. For the June 2008 transfer covering properties sold in October 2007-March 2008, the County distributed $7.478 million in mortgage taxes. For the October 2008-March 2009 period, the County distributed $5.822 million or $1.656 million less.

Poloncarz said, “The reduction in the mortgage tax distribution reflects the weakened state of the economy and fewer or less expensive property transfers occurring in Erie County.” He added, “These lower receipts negatively impact nearly every city, town and village and may further exacerbate existing budget shortfalls in local governments.”

The June 2009 mortgage tax transfer has the following noteworthy reductions:

Municipality June 2008 Dist. June 2009 Dist. Reduction % Reduction
Buffalo $1,053,831 $709,393 $344,438 32.68%
Cheektowaga $717,302 $380,472 $336,830 46.96%
Lancaster (Town) $659,231 $339,395 $319,836 48.52%
Orchard Park (Town) $427,542 $280,230 $147,312 44.46%
Clarence $523,811 $444,531 $79,280 15.14%
Amherst $1,179,999 $1,104,207 $75,792 6.42%

The only municipalities to receive an increase in mortgage tax revenues during this reporting period are Boston, Collins, Eden, Elma, Grand Island, Newstead, Akron and Gowanda.