Consumer spending continued unabated in the face of high prices as sales tax revenue continued to jump in New York, state Comptroller Tom DiNapoli's office on Friday said.
But at the same time, DiNapoli warned economic turbulence could cool what has been a red-hot revenue source for local governments in the state.
“As we head into a new year, local sales tax growth remains quite strong,” DiNapoli said. “Consumer spending and a strong labor market have buoyed sales tax growth even as prices remain elevated. Local governments should budget cautiously as this growth may level off sooner than they expect.”
Sales tax collections in New York grew by 9.2% in January compared to the same month a year ago, according to the analysis released Monday. Sales tax collections overall reached $1.89 billion, an increase from $159 million from the same month a year ago.
Inflation has likely played a factor in the increased sales tax growth, though higher prices have cooled in recent months.
New York City saw an 8.8% increase in sales tax growth to $844 million last month. Every county had some year-over-year growth in their January collections. Onondaga County recorded the lowest at 0.6%; Delaware County saw the largest at 26%.