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New York Comptroller: August 2020 Local Sales Tax Revenues Down 7.8 Percent

Dated Sep. 18, 2020

SUMMARY BY TAX ANALYSTS

The New York state comptroller has reported that local sales tax collections for August decreased 7.8 percent from August 2019 to $1.3 billion, and noted that while the drop is nearly identical to July's, which was less severe than any other month since March — when sales tax revenues were first affected by COVID-19 — financial assistance from the federal government is still needed for those localities most affected by the pandemic in order for them to avoid steep budget cuts to critical services.

DiNapoli: Local Sales Tax Collections Down 7.8 Percent in August

September 17, 2020

Local government sales tax revenue declined by 7.8 percent in August compared to the same period last year, according to State Comptroller Thomas P. DiNapoli. August's sales tax collections totaled $1.3 billion for counties and cities, or $111 million less than in August 2019.

This drop in revenue is similar to the decline in July of 8.2 percent, though much less extreme than the early months of the pandemic when sales tax collections plummeted by double digits.

"Since the pandemic hit, local governments have seen a massive drop in sales tax collections. This is hurting their bottom lines and many have few options to plug the hole," DiNapoli said. "Washington needs to stop playing political games and provide financial help to local governments to weather this storm."

Almost every county in the state saw drops in overall collections for August, ranging from 1.3 percent in Tioga to 35.5 percent in Delaware. New York City had a 7.1 percent decline, a $43.9 million reduction in revenues, which was comparable to the 7.3 percent ($44.6 million) decrease seen in July.

The two counties with collection increases were Hamilton (1.1 percent) and Westchester (18.6 percent). Westchester's tax rate increase in 2019 may account for some of its year-over-year growth in August.

Year-Over-Year Change in Local Sales Tax CollectionsDiNapoli reported last month that local sales tax collections dropped 8.2 percent in July (or $116 million), and 27.1 percent in the April-June quarter, down $1.2 billion from collections in the same quarter of 2019. Over the six-month period of the pandemic's effects (starting in March, when only New York City was showing losses, and continuing through August), local governments have received $1.5 billion (16.9 percent) less than they did during that same period in 2019.

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