Ulster County officials and Democratic state lawmakers are advancing legislation that would authorize the county to create a local income-based surcharge on higher earners, while Republican legislators are sharply criticizing the proposal as harmful to taxpayers and small businesses.

The proposed “Ulster County for Fair Taxes Act” was announced by Jen Metzger, Michelle Hinchey and Sarahana Shrestha. The legislation, introduced in Albany as S.10532/A.11460, would authorize Ulster County through a Home Rule process to establish a local surcharge on high-income residents.

Under the proposal, the surcharge would apply only to county residents earning more than $200,000 annually for single filers and more than $400,000 for joint filers. County officials said the surcharge would apply only to income above those thresholds and would function as a 16.75% surcharge on the state income tax generated from that income, amounting to roughly a 1.5% tax on earnings above the threshold.

County officials said the measure is intended to reduce reliance on property and sales taxes, which they described as disproportionately burdensome on working- and middle-class residents.

“The deck is really stacked against working families and people living on fixed incomes,” Metzger said in a statement. “We are asking the state for the authority to pursue an additional revenue option based on ability to pay.”

Hinchey said the proposal is intended to help residents struggling with housing and living costs remain in the county.

“We need creative solutions to protect our residents from being priced out of their community,” Hinchey said.

Shrestha said the proposal addresses growing wealth inequality and the county’s dependence on regressive taxes.

“While I firmly believe New York State must tax the rich and invest in programs that increase the quality of life for New Yorkers, I’m proud to have the Hudson Valley lead on the issue of wealth disparity,” Shrestha said.

Ulster County Majority Leader Abe Uchitelle and Ways and Means Committee Chair Jeff Collins also backed the proposal, saying it would help protect homeowners from future property tax increases while maintaining county services.

County officials cited data showing 41% of renters and homeowners in Ulster County are severely cost-burdened, spending at least half their income on housing, while about one-third of working households struggle to meet basic needs.

Republicans in the Ulster County Legislature, however, condemned the proposal, calling it a “tax-and-spend” policy that would hurt economic growth and affordability.

The Republican caucus argued the surcharge would affect not only wealthy residents but also small business owners, contractors, self-employed professionals and dual-income households already facing high taxes in New York.

Kevin Roberts said the proposal reflects “failed tax-and-spend ideology.”

“Ulster County Democrats continue to treat financial success as something to punish rather than encourage,” Roberts said.

Deputy Minority Leader Craig Lopez criticized Democrats for focusing on what he called “symbolic resolutions and national political virtue signaling” instead of affordability issues.

Legislator Jason Kovacs warned the measure could make Ulster County less competitive with neighboring counties that do not impose local income taxes.

“The highest earners are also the most mobile taxpayers,” Kovacs said. “People can relocate, businesses can move, and investors can change residency.”

Legislator Rich Walls said county officials should reduce spending before considering new taxes.

The proposal would require approval by the New York State Legislature before Ulster County could begin the local law process through the County Legislature.