Don’t get too excited, but Spectrum News has learned that December’s internet sales tax disbursement will not be subject to a 20 percent withholding from the state.

According to the Division of the Budget, "The internet sales tax is revenue, not spending, and is distributed as aid to localities based on where online purchases are made. The pandemic has hurt household and municipal finances and it is too soon to say how much revenue will ultimately be collected and distributed."

Spectrum News reached out to the Division of the Budget after speaking with Gerry Geist, executive director of the Association of Towns. Geist told Spectrum News that his members, many of whom are already starting the budget process for next year, were uncertain how to budget for this particular revenue stream. 

The internet sales tax, which is also called a market provider tax, is new to New York State since the 2019 budget. Last year it was expected to generate $160 million annually for local governments, as well as $320 million for the Metropolitan Transportation Authority’s capital plan lockbox. It’s not yet clear how COVID-19 may affect these numbers.

During an interview with Capital Tonight, Geist discussed the challenges that budget-makers are having planning for the next fiscal year, as well as why he feels his organization should be represented on the State’s Climate Council advisory board for local governments.