The good news: Revenue from the sales tax in New York has continued to surge compared to this point a year ago when the state's economy was largely frozen in the first months of the COVID-19 pandemic.

The bad news: That monthly increase is getting smaller as the spread of the delta variant of the virus has introduced a new level of uncertainty for businesses and public health officials.

Comptroller Tom DiNapoli's office on Tuesday announced local governments saw their sales tax revenue jump by 21.2% compared to the same month a year ago. But that's less robust than the 46.1% increase from June 2020 to June 2021, and the 57.8% increase from the 12-month period between May 2020 and May 2021.

Overall, sales tax in July accounted for $1.6 billion across the state, an increase from $276 million from a year ago. 

“Last month’s impressive sales tax performance reflects this year’s strengthening economy and positive jobs numbers,” DiNapoli said. “Overall collections around this time last year were severely weakened by the effects of the COVID-19 pandemic. New York’s local governments are seeing much stronger collections in 2021. However, with recent increases in infection rates occurring across the state, local officials must continue to monitor changing economic conditions and maintain vigilance when it comes to their finances.”