Sales tax collections worst in recent history Advertisement By Tyler Briggs The Evening Tribune Sun Feb 28, 2010, 11:30 AM EST
As if there wasn’t enough proof of an aching economy, the Office of the State Comptroller recently issued a report on the sales tax collection for all counties in New York state in 2009, providing even more evidence that the economy is struggling.
The report released by State Comptroller Thomas P. DiNapoli compares 2009 to 2008 collections, and found a 5.9 decrease in collections statewide.
The news was even worse for Steuben County. According to the report, Steuben generated $39,081,268 in sales tax revenue. This represents about a 6.2 percent decrease from the previous year, when the county generated $41,665,821. It also means sales tax revenue decreased slightly more than the statewide average, ranking 36th among the 57 counties in the report.
This decrease is a year removed from news of a significant increase in the county. In 2008 Steuben County experienced a 5.1 percent increase from 2007 in sales tax revenue.
While the decrease wasn’t as significant, the news wasn’t much better for Allegany County. Allegany County ranked 11th of the 57 counties in the report, experiencing a 2.2 percent decrease and generating $17,212,098 in 2009, the report found.
Sales tax-declines were experienced by 53 of the 57 counties in the report. Only four — Chatauqua, Oneida, Schuyler, and Seneca — counties experienced a growth in sales tax revenue, but the report attributes it to other factors other than economic growth, like late payments and other technical adjustments.
“Unlike other recent downturns, 2009 was the first time in recent history that there was actually a decline in county sales tax revenue — a sign of the severity of the recent recession,” the report reads. “The sales tax decline in 2009 was one of the worst on record.”
“This is yet another sign that the Great Recession is having a continuing impact on our communities across New York,” DiNapoli said in a release. “These numbers are sobering. Fortunately, many local governments have taken sometimes painful budgetary steps to stave off disaster. It’s a struggle, but all levels of government have to make every taxpayer dime count.”
The report didn’t offer much room for optimism, stating that tax collections are largely driven by two factors — personal income and employment. “Both of these factors are expected to remain weak in 2010,” the report reads.
