Sales tax collections by local governments in New York rose sharply in 2021 compared to the pandemic-ravaged 2020, a report released Wednesday by state Comptroller Tom DiNapoli found. 

The report underscores the relatively quick snapping back of sales in 2021 as people became vaccinated and COVID-related restrictions on businesses were eased. 

Still, some of the increase was partially attributed to a rise in inflation as well as online purchases, the report found. Federal aid directly to Americans, as well as changing buying habits, led to more people with more money in their bank accounts. At the same time, the increased buying has been partially attributed to complications with the global supply chain. 

“The pandemic substantially changed consumer spending for goods and services and from brick and mortar to online,” DiNapoli said. “While local sales tax collections were robust in 2021 as the economy rebounded from the pandemic, some of that growth is attributed to inflation, which was the highest it has been in over thirty years. If inflation remains high, consumer spending on many taxable goods could decrease due to the rising cost of basic staples.”

Overall, sales tax collections in 2021 increased by 19.1%, a $3.1 billion increase. Revenue from the sales tax dropped to an historic low in the first year of the pandemic, dropping by 10%. 

Sales tax growth in New York City, the engine the state's economy, did not recover to 2019 levels until the final months of 2021 and lagged the rest of the state. Still, nearly every county saw a double-digit increase in 2021 and more than a third of them experienced growth above 20%.