Photo: Progress Continues at Warwick Construction Site, Source: jw.org
Supervisor Says Town Is Working to Protect Tax Base While Preserving Community Character
WARWICK — Responding to recent public discussion surrounding Orange County’s gasoline tax cap and the Jehovah’s Witnesses’ acquisition of a neighboring data center, Town Supervisor Jesse Dwyer used his latest report to residents to explain how both developments could affect Warwick’s finances—and what the Town is doing to protect taxpayers.
While the two issues appear unrelated, Dwyer said they share a common theme: maintaining a stable local tax base while continuing to provide the services residents expect.
Gas Tax Cap Shifts Burden to Local Taxpayers, Supervisor Says
Addressing the Orange County Legislature’s recent decision to cap the county sales tax on gasoline at $2 per gallon, Dwyer acknowledged the measure may provide some relief to motorists but argued the savings come at a cost to local governments.
“While this measure is estimated to save average commuters roughly $20 per month, it is ultimately a tax shift,” Dwyer said. “It removes a small burden from commuters—many of whom do not reside in Warwick or even Orange County—and shifts the burden directly onto local property taxpayers.”
According to Dwyer, Warwick stands to lose more than $35,000 in sales tax revenue, money that would otherwise support road maintenance and police services.
He noted that the vote came only weeks after the Town experienced what he described as a significant reduction in expected sales tax revenue due to a county distribution error.
“Warwick’s first-quarter sales tax revenue, anticipated to be nearly $1 million, came in $200,000 short,” Dwyer said. “Had the county resolved this sales tax distribution issue before implementing the gas tax cap, our budget could have absorbed the hit. Instead, they compounded an already severe revenue loss.”
As a result, the Town has already reduced this year’s road paving program by $200,000.
“If the county does not rectify the distribution issues, we will be forced to continue making necessary cuts to ensure local taxpayers are not left absorbing the impact of these errors,” Dwyer said. “Unfortunately, as a direct result, local services will be compromised.”
The comments provide additional context to the recent debate over the Legislature’s vote, which divided both Republicans and Democrats over whether the measure represented meaningful taxpayer relief or a shift in costs to municipalities.
Data Center Purchase Raises Tax Base Questions
Dwyer also addressed the recent purchase of the former IBM/Kyndryl data center adjacent to the Jehovah’s Witnesses’ World Headquarters in Warwick, an acquisition first reported by the Warwick Valley Dispatch in last week’s issue.
The 68-acre property is currently assessed at approximately $54 million, making it one of Warwick’s largest commercial properties.
Under New York law, property used exclusively for religious purposes may qualify for exemption from local property taxation.
“This particular parcel is Warwick’s third-largest property taxpayer, contributing roughly $100,000 annually to the Town’s tax base and approximately $400,000 to the Tuxedo School District,” Dwyer said.
While acknowledging the potential fiscal impact, Dwyer emphasized that the Town’s concerns are directed not at the Jehovah’s Witnesses themselves, but at the broader implications for Warwick’s tax base. He described the organization, whose World Headquarters has been located in Warwick for nearly a decade, as a valued member of the community.
“The Jehovah’s Witnesses are excellent neighbors who contribute to our local economy and consistently support our small businesses,” Dwyer said. “However, the potential loss to our tax base is significant, and we are carefully weighing all available options moving forward.”
Dwyer noted that the organization’s existing headquarters has qualified for a religious property tax exemption since relocating to Warwick ten years ago. The newly acquired former IBM/Kyndryl data center, however, has remained on the tax rolls as a commercial property, making its future tax status an issue of considerable importance to the Town. He cautioned that Warwick’s authority in the matter is limited because religious property tax exemptions are governed by New York State Real Property Tax Law Section 420-a and ultimately derive from provisions of the New York State Constitution.
Balancing Preservation and Fiscal Responsibility
Dwyer concluded his report by highlighting progress on Warwick’s nationally recognized Purchase of Development Rights (PDR) program.
The Town is currently negotiating the preservation of more than 200 additional acres across two properties. If completed, and combined with acquisitions already approved, Warwick could increase its permanently preserved farmland and open space from roughly 5,000 acres to more than 6,000 acres within eighteen months.
At the same time, Dwyer acknowledged that conservation carries long-term financial implications.
“By design, the PDR program prevents dense residential and commercial development,” he said. “This is a conscious, visionary choice Warwick made long ago, and it has successfully protected the beautiful, rural character our town is celebrated for.”
But, he added, preservation also limits future tax growth.
“As leadership, we must also openly acknowledge the fiscal reality of conservation,” Dwyer said. “Preventing development keeps these large parcels from expanding our future tax base. As we navigate these complex revenue challenges, we must ensure our long-term preservation goals do not inadvertently place an undue financial squeeze on our current property taxpayers.”
Dwyer said balancing fiscal responsibility with preservation remains one of the Town Board’s principal responsibilities.
“The Town Board and I remain deeply committed to keeping municipal costs down while continuing to provide the high-quality services our residents expect and deserve,” he said. “Managing this balance between preserving our town’s unique heritage and maintaining a stable, sustainable tax base requires tough, responsible choices, and it is a commitment we take seriously every single day.”
The issues outlined by Jesse Dwyer also come against the backdrop of an administration that has earned a reputation for disciplined fiscal management and long-range planning. Under the current Town Board, Warwick has continued expanding its farmland preservation program, invested in infrastructure, strengthened protection of its rural landscape, and carefully managed growth while avoiding many of the financial pressures experienced by neighboring municipalities. As new challenges arise—from changes in county revenue sharing to questions surrounding major tax-exempt properties—the Town’s leadership appears intent on maintaining that balanced approach, protecting both Warwick’s character and the interests of its taxpayers.
