HERKIMER — The village of Herkimer was underpaid $277,534 in Herkimer County sales tax distributions while the county was overpaid $3,320,364, attorney Michael Longstreet, of Longstreet & Berry, of Syracuse, told the Herkimer village board during a meeting Monday.

"This affects the village of Herkimer and all the towns and villages in Herkimer County," he said.

Longstreet said it is up to the county Legislature to decide where the money collected through the county sales tax goes and, in 2012, the Legislature approved an agreement with the city of Little Falls which stated that after the county’s deduction, 50 percent of the amount collected would go to the towns and villages. Since then, the villages and towns have continued to receive 33 percent of the sales tax distribution.

County officials said Tuesday there was a mistake in the language of the agreement with the city and the county is working to correct it.

Longstreet said Monday a concerned citizen had contacted the village about the discrepancy. The citizen had said he had been in touch with a member of the Legislature, pointing out that according to the agreement, the city of Little Falls was overpaid $122,901 while the village of Herkimer was underpaid $277,534 and the village of Ilion was underpaid $299,072. When he was not satisfied with how the Legislature planned to deal with the matter other than with the overpayment to Little Falls, he contacted Herkimer village officials.

Longstreet recommended the village board vote to ratify the agreement regarding the sales tax distribution and hire him to try to initiate talks with the county.

"The fundamental issue is does the village have the right to enforce this," he said, adding he found it "incomprehensible" that the treasurer, auditor and county officials didn’t know the change outlined in the agreement had not been enacted.

The village board approved both of the resolutions Longstreet recommended.

Trustee Mark Ainsworth asked if the county could be penalized for interest on top of the amount owed to municipalities.

That would be discretionary with the court, according to Longstreet.

Trustee Kelly Brown asked if other municipalities would also be involved. Longstreet said there is interest on the part of the village of Ilion and others are also being contacted. Village Attorney Nicholas Macri said he would raise the issue with towns he represents.

"This is money you, the taxpayer, have been making up for," said Mayor Tony Brindisi.

When contacted Tuesday, County Administrator James Wallace said there was a mistake in the language of an agreement with the city of Little Falls and steps are being taken to correct it.

He said the distribution is the same as it has been since 1988 and there was never any discussion about changing that formula.

County Attorney Robert Malone agreed.

"There’s a mistake in the contract. We’re in the process of correcting it," he said. "There was no intent to change it. We’re using the same formula we’ve always used. The mistake did not affect the distribution."

He said the contract is being amended.

"We’ll get the language right and move forward," Malone said.

The county retains some of the tax and the city receives a payment, according to Malone.

"The mistake was an oversight here in the county and we’re taking steps to correct it," he said.

The five-year agreement between the city of Little Falls and the county is effective through 2017.