Local counties see sales tax revenue drop, increase

·2 min read

Aug. 17—State Comptroller Thomas P. DiNapoli announced local sales tax collections rose in July by 11.9% statewide, but local counties saw mixed results.

According to a media release, local collections totaled $1.8 billion, up $188 million as compared to July of last year. New York City's collections totaled $776 million, an increase of 19.5% — or $127 million — over July of 2021. A majority of counties saw some year-over-year growth in July collections, with Schuyler County experiencing the largest increase at 19.6%, followed by Cattaraugus at 13.3% and Yates at 12.6%. Conversely, Monroe County saw the steepest decline of -4.6%.

"Statewide local sales tax collections growth continued to be strong in July, despite the participation of many counties in the gas tax holiday," DiNapoli said in the release. "However, it is important that local officials continue to monitor economic factors that impact overall sales tax revenues."

According to a spreadsheet issued by the Comptroller's office, Chenango County was expected to receive $2.3 million in sales tax in July, a decline of 3.7% compared to last year, while the city of Norwich was expected to receive $200,000, a decline of 2.8%. Delaware County was expected to receive $2.4 million in July, a 6.8% increase over last year's figure. Otsego County was expected to receive $3.9 million in July, a 1.9% decline over last year. Schoharie County was expected to receive $1.6 million in July, a 1.1% increase over last year.

However, every county saw sales tax decreases in June due to reductions in the gas tax holiday, the release said. Locally, Chenango County was expected to receive $2.4 million, down 35.9% from June 2021, and the city of Norwich was expected to receive $200,000, down 31%; Delaware County was expected to receive $2.9 million, down 25.7%; Otsego County was expected to receive $4 million, down 30.7%, and Schoharie County was expected to receive $2 million, down 22.8%.

In April, when Delaware County approved participating in the gas tax holiday, Delaware County Budget Director Art Merrill said the county expected to lose about $1.2 million in gas sales tax for the remainder of the year.

Monthly sales tax distributions made to counties and tax-imposing cities are based on estimates by the Department of Taxation and Finance, the release said. In the third month of each calendar year quarter, these distributions are adjusted upward or downward, so that the quarter as a whole reflects reported sales by vendors. The next quarterly numbers (for July-September) will be available in October, and will be the first to reflect the sales tax impact of the gas tax holiday on a county-by-county basis.

Vicky Klukkert, staff writer, can be reached at vklukkert@thedailystar.com or 607-441-7221.