Sales tax revenue in New York between April and June skyrocketed compared to the same period last year, a rebound after the COVID-19 pandemic shuttered many businesses and gathering places around the state, Comptroller Tom DiNapoli's office announced Friday.
Revenue from the tax grew by 49.2% during the second quarter of the year compared to the same time period last year, totaling more than $1.6 billion. The amount of money passed collections during the second quarter of 2019 as well prior to the pandemic and a sign of pent up demand being unleashed.
Every region outside of New York City saw a two-year growth in sales tax increased by more than 18%. In the Mid-Hudson and North Country regions, sales tax grew by more than 29% during this time.
Still, there are question marks as the delta variant of the virus has driven a sharp rise in COVID-19 cases across the country, with the vast majority of hospitalizations and deaths occurring among people who have not been vaccinated.
“The strength of these collections, along with federal aid, will give local governments statewide the chance to improve their fiscal stability, but it will take time to recover from the strain caused by the COVID-19 pandemic,” DiNapoli said. “While this is good news, local leaders are advised to budget carefully. If this pandemic has taught us anything, it’s to always plan for unpredictable circumstances.”