JOHNSTOWN – Fulton County supervisors on Monday changed the county’s 1956 Workers Compensation Self-Insurance Plan law.
Officials say the revised law may change the state tax-cap calculations for the county and its cities and towns.
The state sets a property tax-levy cap for each municipality. The state refers to the cap as a 2 percent cap, but the figure often varies higher or lower depending on certain calculations.
The workers compensation law change may increase county government’s tax cap, but lower the tax cap for the cities and towns within the county.
The amendment revises the payment method for participants in the Fulton County Workers Compensation Self-Insurance Plan.
The new law says the share amounts due from each participating city, town, village and school district must be paid to the county treasurer within 30 days after the start of the participant’s fiscal year.
County Administrative Officer Jon Stead said the new law won’t go into effect until next year.
Counties often provide services to municipalities and bill for them. The state takes these chargebacks into consideration when calculating a municipality’s tax cap. The calculation can reduce or raise the cap.
The state comptroller recommended Fulton County follow the approach of other counties and change the procedure for collection by billing the annual chargeback to the municipality in January each year. Each municipality now will budget for the annual expense within its own budget.
In a separate resolution, the board apportioned $1.1 million in 2014 Workers Compensation Program expenses for 2014.
Michael Anich can be reached at [email protected].