Sales tax collections in August increased by 12.6% compared to the same time last year even as New Yorkers are likely pulling back on spending in the wake of spiking inflation, state Comptroller Tom DiNapoli on Wednesday said.
All told, statewide sales tax collections reached $1.7 billion in August, an increase of nearly $192 million.
The increase in revenue comes despite a suspension of about 17 cents per gallon in gas taxes that will be in effect until the end of the year. But it also comes as consumers are spending more on groceries and other inflation-prone purchases.
DiNapoli warned local governments to not count on a continued windfall from the sales tax.
“Overall local sales tax collections were strong in August, even with many counties participating in the gas tax holiday,” DiNapoli said. “With consumer spending softening in recent months, local governments should maintain vigilance when it comes to their finances."
New York's sales tax collections made up the bulk of the revenue from the tax in August, reaching more than $750 million. That's a 20.6% increase over August 2021.