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Thursday, August 1, 2024

DiNapoli: Local Sales Tax Collections Up 2.2% in Second Quarter...but

But...Allegany County had the steepest decline at -10.1%

Local government sales tax collections totaled $5.83 billion in the second calendar quarter (April-June) of 2024, an increase of 2.2%, or $127 million, compared to the same quarter last year, according to a report released today by State Comptroller Thomas P. DiNapoli. While this growth was largely driven by New York City, all other regions of the state also saw increases.

“Growth in local sales tax collections has moderated, as both personal consumption and inflation cooled through the second quarter,” DiNapoli said. “New York City was again the largest single contributor to local sales tax growth, and its moderate increase in collections reflects in part a tourism industry that continues to improve.”

Local sales tax growth in the second quarter was slightly stronger than the 1.6% increase seen in the first quarter, still lagging growth rates realized after the first quarter in 2021. However, it was not unusual to see collections increase around (or under) 2%, year over year, in the decade before the pandemic.

In the second quarter of 2024, New York City saw a 3.3%, or $82.4 million, increase in collections, while the counties and cities in the rest of the state, in aggregate, experienced 1.4% growth, year over year. On a regional basis, the North Country, Mohawk Valley, and the Capital District had the highest quarterly growth rates at 6.6%, 4.4%, and 3.5% respectively. Long Island and Mid-Hudson were both nearly flat, at 0.1% growth each.

Over 68% (39 of 57) of counties saw an increase in collections in the quarter, led by St. Lawrence County at 22.5%, and followed by the counties of Livingston (18.5%), Montgomery (12.6%), and Schuyler (11.7%). Allegany County had the steepest decline at -10.1%, followed by the counties of Tioga (-6.7%), Putnam (-6.2%), and Yates (-6.1%).

A majority of cities (13 of 18) outside of New York City that impose their own sales tax experienced year-over-year growth in the second quarter. Ogdensburg had the strongest increase at 17.5%, followed by Johnstown (13.5%) and Saratoga Springs (9.8%). Of the five cities with declines, Salamanca experienced the steepest drop at -14.9%, followed by Mt. Vernon (-14.1%), and Oneida (-2.9%).

Year to date, statewide local sales tax collections are up 1.9%, or nearly $215 million, over the January-June period of 2023.