Local government sales tax collections experienced a notable decrease of 7.1% in November compared to the same period last year, according to State Comptroller Thomas P. DiNapoli. The total sales tax revenue for local governments statewide amounted to $1.3 billion in November, marking a $102 million decrease from November 2019.
Steeper Decline in Sales Tax Collections
While October saw a 5.2% decline in sales tax collections, November's decline of 7.1% indicates a more significant drop. However, it is worth noting that this decline is not as severe as the double-digit drops experienced during the earlier months of the pandemic (April-June). Overall, local government collections for the year 2020 (January-November) have decreased by $1.7 billion (10.1%) compared to the same period in 2019.
DiNapoli Emphasizes Need for Federal Aid
DiNapoli highlighted the critical role that sales tax collections play in providing revenue for counties and municipalities. He stressed the importance of substantial aid from the federal government, especially as COVID-19 infection rates rise and restrictions continue to impact economic activity. Federal assistance, according to DiNapoli, is essential to support first responders and facilitate the distribution of the vaccine.
Regional Trends in Sales Tax Collections
In terms of regional performance, sales tax collections in November showed a decline across all regions. The Capital District experienced a 3.6% decrease, while the Southern Tier saw a significant drop of 10.9%. Nearly all counties reported declines, with Wayne recording a modest 0.6% decrease and Cayuga facing a substantial 26.4% decline. New York City witnessed a 6.5% ($43 million) reduction compared to November 2019.
Upcoming Reporting on December Sales Tax Collections
The state Tax and Finance Department will release December sales tax collection data in mid-January, including a reconciliation that reflects the final reported sales activity by location. This comprehensive report will provide a clearer understanding of the overall impact of the pandemic on individual counties and cities throughout the quarter and calendar year.
Image courtesy of the Office of New York State Comptroller Thomas P. DiNapoli