Peekskill staff recommend easing restriction on transfer tax to help emergency services

City staff explained the origin and status of Peekskill's 1% transfer tax and recommended a council resolution to lift the local restriction that currently directs proceeds to the Centennial Firehouse fund. "The restriction is only through the city council's resolution," one staff researcher said, explaining that state enabling legislation does not tie the tax to a single purpose and that a council-level resolution could change how the receipts are allocated.

Staff recommended keeping a structured approach that would preserve payments to finish the firehouse debt (staff said roughly 11 remaining annual payment cycles through 2037) while allowing future transfer-tax receipts to be collected into the general fund for emergency-service costs. The council asked for additional research and legal language before scheduling a formal vote.