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You are here: Home / News / Local News / Comptroller Warns of Lagging Sales Tax Numbers for Local Governments

Comptroller Warns of Lagging Sales Tax Numbers for Local Governments

February 1, 2017 By WRFA Leave a Comment

ALBANY – Local sales tax collections in New York State showed sluggish growth in 2016 compared to 2015, increasing 2.3 percent last year, according to a report released earlier this week by New York State Comptroller Thomas DiNapoli.

The comptroller’s report said that sales tax collections are a crucial, yet unstable source of revenue for local governments, adding that the impact of little to no growth is felt in several regions across the state, especially in counties and municipalities that may already be struggling financially. He said that as the year progresses, local officials will need to closely monitor their budgets should these collections slip.

DiNapoli’s report found that Sales tax collections grew by more than 4 percent in six counties in 2016, including Chautauqua County – which was joined by Delaware, Jefferson, Putnam, Sullivan and Yates counties. However, Chautauqua County’s upswing was largely due to a .5 percent increase in the sales tax rate starting in 2016. A better indication of how sales tax numbers look in the county is by reviewing the sales tax revenue for Jamestown and other local governments within the county. The final numbers for 2016 have not yet been released.

Eight counties experienced a decline in collections of more than 2 percent in 2016, including Cattaraugus County.

Regionally, the strongest sales tax growth in 2016 was in the Mid-Hudson Valley with a 2.9 percent increase and Long Island with a 1.9 percent increase.

“Sales tax collections are a crucial, yet unstable source of revenue for local governments,” said DiNapoli. “The impact of little to no growth is felt in several regions across the state, especially in counties and municipalities that may already be struggling financially. As the year progresses, local officials will need to closely monitor their budgets should these collections slip.”

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Filed Under: Local News Tagged With: Sales Tax, Thomas DiNapoli

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