ALBANY, N.Y. — Local government sales-tax collections across New York rose about 15 percent to more than $1.5 billion in August from about $1.3 billion in the same month in 2020. The August increase follows a 21 percent jump in July and represents the fifth consecutive month that sales-tax collections exceeded 2020 results, New York […]
ALBANY, N.Y. — Local government sales-tax collections across New York rose about 15 percent to more than $1.5 billion in August from about $1.3 billion in the same month in 2020.
The August increase follows a 21 percent jump in July and represents the fifth consecutive month that sales-tax collections exceeded 2020 results, New York State Comptroller Thomas DiNapoli announced Sept. 15.
“New York’s local governments continue to see much stronger collections in 2021 compared to last year when the pandemic kept people home,” the comptroller said. “However, it remains uncertain how recent increases in statewide infection rates will impact the economy. Local governments must continue to monitor changing economic conditions and maintain vigilance when it comes to their finances,” he cautioned.
The double-digit growth in local sales taxes is “notable” in comparison to the “fairly weak” collections reported during August 2020 when sales activity was recovering in certain parts of the state from the early effects of the pandemic.
Still, August 2021 total collections were “strong” even when compared to the figures reported during pre-pandemic levels, growing 6.5 percent, or nearly $93 million, over August 2019, DiNapoli’s office noted.
Every county outside of New York City saw year-over-year collections for August grow by double digits, ranging from 12.6 percent in Herkimer County to 76.3 percent in Delaware County. New York City’s collections totaled almost $623 million, an increase of 7.9 percent, or more than $45 million, compared to August 2020.
During the last month of each calendar quarter, the New York State Department of Taxation and Finance reconciles quarterly distributions against what had been reported by sales-tax vendors for the reporting quarter and adjusts payments to local jurisdictions in those months upward or downward accordingly.
During the other months, including August, the payments are based on estimates.
The next reconciliation will be reported in mid-October and will provide more information on the regional picture of sales-tax collections for the third quarter period of July through September, DiNapoli’s office explained.