Troy Mayor Carmella Mantello is pushing to renegotiate the city's sales tax revenue agreement with Rensselaer County, arguing the decade-old formula no longer reflects what the city deserves as county collections climb toward record highs. Under the current deal, Troy receives 19.65 percent of the first $80 million in county sales tax revenue collected each year, plus 9 percent of everything collected after that threshold. In exchange, the city has waived its own ability to impose a separate city sales tax.
Mantello contends the agreement, whose rates have been in place since at least 2015, should be updated to better reflect the county's growing revenue picture, according to the Times Union. She said a one-percentage-point increase to that back-end 9 percent rate alone could bring the city nearly $200,000 to $300,000 in additional revenue. The mayor has an ideal agreement in mind but declined to disclose specifics, saying doing so could affect the negotiations themselves.
The current agreement, which the Rensselaer County Legislature approved in its renewed form in 2021, is set to expire on February 28. Mantello said she has already had initial discussions with County Executive Steven McLaughlin about renegotiating, though no formal meeting has been scheduled. She told the paper she hopes to meet with McLaughlin by the end of next week.
County Says It's Waiting to Hear From Interested Parties
Rensselaer County spokesperson Rich Crist said the county expects to hear from interested parties on the issue in the coming days, per the Times Union's reporting. Any new agreement would ultimately need approval from both the Rensselaer County Legislature and the Troy City Council before taking effect.
Troy's push for a renegotiated deal has drawn public backing from the three Democratic county legislators who represent the city. Mark Fleming, Jessica Ashley and Gary Galuski said in an October statement that they support Mantello's effort, and the three formally requested inclusion in all future discussions and negotiations over the agreement, according to a release from the Rensselaer County Legislature. Ashley said any changes should ensure Troy receives an appropriate share of revenue while still recognizing the county's own financial needs.
Fleming said the county typically collects $80 million in sales tax revenue by around September each year, meaning collections above that threshold are paid to Troy at a smaller percentage. He argued that Troy's legislators could bring a valuable perspective to the talks because they understand both the city's and the county's financial positions.
City Council Weighs In on the Formula
At Troy's budget hearings last month, Mantello told the council that discussions had already begun with the county executive to renegotiate the current sales tax agreement, the Times Union reported, the detail having also surfaced in a budget letter covered by the Troy Record. Councilmember Noreen McKee backed the push for a new deal, telling the paper plainly: “The formula does need to be changed.”
Troy City Council President Susan Steele, a Democrat, said she believes the city's agreement with the county needs renegotiation and that Troy's standing as the county's largest municipality should be reflected in its share of sales tax revenue. Steele said she hopes the relationship between the mayor and the county executive will produce a more equitable outcome for the city.
County Revenue Has Climbed for Years
The push comes as county sales tax collections have grown substantially. Rensselaer County took in $89 million in sales tax revenue at the end of 2018, the year McLaughlin took office, and was recognized for having the state's highest sales tax growth the following year. Collections later surpassed $100 million.
Revenue kept climbing from there, growing to $122 million in 2022 and reaching $124.856 million in 2023. The county reported a 5.29 percent jump in 2025, collecting $131.873 million compared with $125.251 million the year before, according to figures posted by Rensselaer County, which noted that revenues have increased every year during McLaughlin's tenure. The county is on pace to exceed $130 million again in 2026.
Troy's own budget documents show the stakes for the city. The county's 2024 sales tax PILOT receipts for Troy totaled $19.79 million, and the city has estimated that same fund will draw $22 million in revenue in 2026, according to WAMC. Sales tax sharing arrangements like Troy's are common statewide; the New York State Comptroller's office notes that most counties share a portion of their local sales tax revenue with cities, towns and villages within their borders, either through statute or negotiated agreements. McLaughlin released a statement in October regarding his 2027 budget proposal, though it is not yet clear what position the county executive will take at the negotiating table.
