Local sales tax revenue climbing; collections uneven between downstate and upstate New York
ALBANY - Local sales tax collections grew by $397 million, or 5.7 percent, for the first half of 2013 compared to the same period in 2012, according to a report issued today by State Comptroller Thomas DiNapoli. Much of the growth was focused in regions downstate.
“The growth in sales tax revenue is a promising sign for many communities,” said DiNapoli. “Unfortunately, the economic improvement has been uneven and the trends are headed in the wrong direction for some of our most vulnerable municipalities. Sales tax collections are a vital source of revenue for local governments. Without positive growth during the second half of the year, many local budgets will be under increased pressure.”
DiNapoli’s analysis found that year-over-year growth in sales tax collections was 5.5 percent in the first quarter of 2013 and 5.9 percent in the second quarter.
The gains were driven by especially strong sales tax growth downstate during the first half of 2013. Long Island had 8.5 percent growth in sales tax collections while New York City’s collections increased by 7.5 percent during this period. These increases were likely fueled by cleanup and rebuilding efforts following Superstorm Sandy.
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