Revenue from the sales tax for local governments fell $116 million or 8.2 percent during a similar period last year, Comptroller Tom DiNapoli on Wednesday said, as the economic fallout from the coronavirus pandemic continues.
The revenue decline is the latest monthly drop in sales taxes amid a pandemic that has closed businesses and left millions of people out of work.
But the drop is not as steep as previous months as businesses have reopened gradually since May.
“New York’s local governments continue to see a significant downturn in sales tax collections, a major source of revenue. This is going to have a long-lasting effect on revenues for counties, cities and many towns and villages around the state,” DiNapoli said. “The federal government needs to step up and provide financial help to those hit hard by this virus. Without action, communities may need to make severe cuts to critical services.”
Almost each county and region saw a year over year drop in sales tax. Only four counties, including Westchester where a tax rate increase has boosted growth.