The Albany Common Council voted to back a controversial commuter tax Monday night, starting a long-shot effort to find more "creative" ways to raise revenue.
The non-binding resolution passed by a vote of 9-2, with three members voting “present.”
The vote comes as the city of Albany faces a dismal financial outlook, a projected $26 million operating deficit for 2026, and a 2027 budget proposal with a 15% property tax levy increase and plenty of errors.
“A bailout is not going to fix Albany because a bailout is a one-time payment," Councilmember Derek Johnson, the resolution's primary backer, said before the vote. "We need something that's going to be reoccurring. And for everyone that's upset about this resolution, forgive me for thinking outside the box, but I really didn't think too far outside the box because this conversation has come up before.”
The resolution passed by the council calls on the New York State Legislature to allow the council to tax the incomes of people who work in the City of Albany but live elsewhere. The council couldn’t pass a commuter tax without that change to state law.
The commuter tax faces an uphill battle in the New York State Legislature, which would have to approve the change.
Local and state lawmakers on both sides of the aisle — including most of the Capital Region's legislative delegation, who would need to shepherd a commuter tax proposal through the State Legislature — have criticized the proposal, calling it "disastrous," "insane" and "out of touch." Lawmakers argued the tax would hurt largely middle and working class employees, as well as Albany’s business community.
A few members echoed those concerns ahead of the vote, including Deirdre Brodie, who called the commuter tax "not feasible," even as she criticized how the administration of
Albany Mayor Dorcey Applyrs has handled the 2027 budget approval process.
"I do think we should absolutely be part of the conversation on the revenue generation side, it needs to be with revenue that's legal, that is quantifiable, and that doesn't, frankly, piss off the entirety of the rest of the Capital District," Brodie said before the vote.
Brodie pointed to other methods of raising revenue, including fee increases outlined in an Oct. 10 letter from 12 councilmembers to Applyrs.
Councilmember Ginnie Farrell, one of three members to vote "present" on the resolution, said she wouldn't be taking a stance on the resolution because she "would prefer a letter or something more collaborative" over legislation.
But Farrell said the commuter tax proposal was indicative of a tax system that "works against cities" that are "supposed to rely on property taxes" while providing "a regional service."
"We need to have the conversation about the actual tax structure, and it's not just Albany. It's not just Albany," Farrell said before the vote. "It's every city in New York state is dealing with a similar tax structure and dealing with the same deficits and the same issues. Their costs are rising. They also have to deal with a huge amount of safety and security costs, infrastructure costs, all the same things. And the conversation matters, so I appreciate this being brought up."
Applyrs also came out against the commuter tax Monday afternoon, hours before the vote. She said in a statement it was a good conversation starter but ultimately "does not have the necessary support at the state level to move forward at this time."
"While a commuter tax is not a viable solution to our budget challenges, the discussion raises important questions that deserve our attention," Applyrs said in a statement. "The capital city cannot thrive without shared responsibility and financial support from those who rely on our resources and services."
The resolution does not spell out what the earnings tax rate would be, nor whether hybrid employees would count as "commuters."
In 2005, the Albany Common Council passed a similar resolution calling for a 0.33% income tax on commuters. The proposal was ultimately unsuccessful.
The City of Albany has until Nov. 30 to approve a budget for 2027.
