Albany Wants More of Your Money, Even If You Don't Live There

Imagine getting hit with an additional tax just because you work in Albany, even though you live elsewhere.

That possibility moved forward Monday night, when the Albany Common Council voted 9-2 to approve a controversial commuter tax resolution. Three members voted "present."

But don't panic just yet. The proposal faces some pretty significant obstacles.

Why Does Albany Want to Tax Commuters?

According to reports, nine Albany Common Council members introduced the resolution asking New York State to authorize a tax on people who work in Albany but live outside city limits.

City Auditor Sam Fein estimates that approximately 107,281 people, or 86.5% of Albany's workforce, live outside the city.

Supporters argue that commuters benefit from city roads, police, fire protection, and other municipal services without paying Albany property taxes, and they feel like it's overdue.

Meanwhile, the city faces major financial challenges, including a projected $35 million budget gap for 2027.

How Much Would Commuters Pay?

City Auditor Sam Fein estimated that a commuter tax could generate between $15.7 million and $28.2 million annually, depending on the rate.

For someone earning $80,000 annually in taxable Albany wages, a tax of one-third of one percent would mean roughly $267 in additional taxes each year, according to reports.

The resolution doesn't set a final tax rate or explain exactly how the tax would be administered.

State Lawmakers Aren't Buying It

Despite Monday night's vote, Democrats and Republicans strongly oppose the proposal.

State lawmakers Pat Fahy, John McDonald, Angelo Santabarbara, Jake Ashby, and Scott Bendett have all criticized the idea.

Even Albany Mayor Dorcey Applyrs acknowledged Monday that the tax lacks the necessary state-level support to move forward.

And that's important because Albany cannot impose this tax without authorization from New York State.

My Thoughts on Albany's Commuter Tax

Albany already has something of an image problem, fair or not. Between speed cameras, parking restrictions, and crime concerns, people throughout the Capital Region already think twice about spending time or money in the city.

And now we're considering taxing people simply because they work there?

I understand Albany has financial challenges, and I certainly don't pretend to have all the answers. But I'm not convinced making it more expensive to work here will encourage people or businesses to invest in the city.

Then again, maybe I'm looking at this all wrong.

If this commuter tax means we're finally getting that soccer stadium tied to Albany's $400 million revitalization plans, maybe I'm all for it!

Although, personally, I'd much rather see a beautiful new baseball stadium along the Hudson River. Imagine that view on a summer night!

And while we're spending imaginary commuter tax money, can we finally get that gondola to Rensselaer? Or maybe we can throw a little ketchup on the Central Warehouse and call it a haunted attraction until the demolition is finished.

All kidding aside, I grew up in Albany, went to school here, and have spent much of my life working here. I want to see this city thrive.

I'm just not convinced another tax is the answer.