DiNapoli: February local sales tax collections down 4.2 percent
ALBANY, N.Y. » Overall sales tax collections for local governments declined by 4.2 percent in February compared to the same month in 2020, State Comptroller Thomas DiNapoli announced recently.
Collections totaled nearly $1.3 billion, down $55 million from February of last year. Collections are down $2.2 billion, or 12 percent, for the past 12 months (March 2020 - Feb. 2021), compared to the same 12 months ending February 2020.
Revenues continued to shrink, but the decline last month was less steep than in January (5.9 percent) and December (8.4 percent), and the double-digit declines during the earlier months of the pandemic.
“The recent passage of the American Rescue Plan will provide much-needed aid to our localities,” DiNapoli said
in a news release.
“The pandemic has taken a toll on statewide sales tax collections during the past year. New York’s local governments continue to suffer financially, but the collections losses are starting to slow as more vaccinations are being administered and businesses are slowly reopening,” DiNapoli added.
All regions in the state experienced sales tax collection declines for February, ranging from 0.1 percent in the Mohawk Valley to 9.8 percent in the Finger Lakes. New York City’s collections decreased by 4.5 percent, down $27 million compared to February 2020. The Capital Region saw a 4.0 percent drop, according to the comptroller’s office.
Albany County suffered a 7.8 percent decrease. Likewise, Saratoga County saw a 2.6 percent drop and Saratoga Springs with a 7.9 percent decline. Conversely, though, DiNapoli noted that Rensselaer County was among the few positives with a 6.5 percent increase.
The New York State Department of Taxation and Finance reconciles sales tax collections at the end of each calendar quarter to reflect reported sales activity by location. The next reconciliation will be reported in mid-April, and will provide a more accurate regional picture of sales tax collections during the first quarter (January-March) of 2021.