The New York State Association of Counties announced that, this week, counties received their first installment of sales tax directly related to the first month where the statewide lock down on economic activity was in effect. In aggregate, the county sales tax collections compared to the same period last year were down about 26%. This ranges from about 16% to nearly 37% by county (not including tax rate changes).
The new sales tax data bolster the estimates made under the “severe recession” scenario outlined in NYSAC’s recently updated Coronavirus Economic Impact on Counties report, which projected decreases of 22% over the next year.
NYSAC noted this is a rapidly developing economic situation and revenue conditions could change in either direction quickly.
“These new numbers lend extra weight to what we were already predicting, that the bottom has fallen out from under local governments just as they’re beginning to gain ground against the coronavirus and making plans for reopening,” said NYSAC President John F. Marren. “Counties will continue to work with our state and federal partners to secure the funding necessary to maintain essential services and build the foundation for a resilient recovery.”
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May 09, 2020