County Sales Tax Revenues Rise | Greene County
CATSKILL – Residents of Greene County appear to be spending in their communities once again, with sales tax collection in the county increasing nearly 28% in the first five months of 2021 compared to the same time of year last.
Greene County sales tax collection – which comes from sales of goods and services – from January to May 2021 topped $ 15 million – an increase of over $ 3 million in the first five months of 2020, according to a report by the State Comptroller’s Office. Greene County’s sales tax rate is 8%, half of which goes to the state and the other half to the county.
Statewide, local collections rose nearly 58% in May alone, the largest month-over-month increase in recent history, state comptroller Thomas DiNapoli said in a statement. .
âFor the second month in a row, local sales tax collections have grown tremendously. Strong collections in May show the economy continues to improve as spending rebounds from the effects of the COVID-19 pandemic and the shutdown it created in New York State in March 2020 ” , said DiNapoli. âCombined with direct federal aid and restored state aid, the sales tax clawback will help New York City’s local governments recover from the effects of last year’s revenue deficits. “
New York City’s May collections totaled $ 636 million, an increase of 51.4%, or $ 216 million. All counties outside of New York City also saw year-over-year collections for May increase in double digits, ranging from 17.6% in Franklin County to 88.2% in Allegany County.
Columbia County’s collection increased by more than 74% in May, while that of Greene County increased by more than 50%.
Greene County Legislature Speaker Patrick Linger, R-New Baltimore, said many factors are contributing to the increase, including people staying in their second homes in the county longer and spending more, federal stimulus plans; and county economic development team efforts working with local businesses.
Sales tax is the county’s main source of revenue, Linger said, but he remains “cautiously optimistic” about the increase as sales tax collection can be difficult to predict.
âWe will continue to budget as we normally do. We will work with our companies as we always do. We’ve done a lot of economic development here to increase that sales tax number, âLinger said. âI would like to say that this is all down to our hard work, but there are a lot of factors. “
Jeff Friedman, president and executive director of the Greene County Chamber of Commerce, said the data is a good indicator of retail sales in the region.
âWe’re pretty excited that our economy appears to have weathered the pandemic fairly well. And we’re going back to even higher activity levels than two years ago, because those sales tax numbers are even better than they were two years ago before the pandemic, so it’s a big leap, âFriedman said. noted.
Friedman said that barring an economic shock, he expects sales tax collection to continue to rise – perhaps not at such a large rate – as Greene County’s collection has increased each year. year since the Great Recession.
Part of the increase could also be attributed to the county that collects sales tax on online purchases, which was not the case two years ago, Friedman said.
âIt’s not all of the increase, but it’s part of the increase, which is also always nice, and an indicator that community members are spending their money on retail items,â Friedman said.