In the first three months of 2021, the amount received by the local government in New York through sales tax decreased by 3.9% compared to the same period last year, accounting auditor Tom Dinapoli found in a report. did.
The $ 4.3 billion raised is $ 173 million less than the January-March 2020 period, indicating that the economy remains hit by the COVID-19 pandemic.
However, despite the fact that sales tax revenues continue to decline year-on-year, as the economy resumes and the business situation is gradually improving, the consumption tax revenues of local governments do not decline more rapidly. There are signs of good news.
For local governments, sales tax is the key to offsetting the need for income elsewhere in the budget, such as property taxes. This is a barometer of the state’s economic health, as people may accept large purchases.
“The collection remains declining compared to last year, but there are signs of improvement as the state continues to recover from the economic devastation caused by the COVID-19 pandemic,” said Dinapoli. .. “The pandemic trajectory and its impact on the state’s financial recovery remain uncertain, so local authorities have been warned to closely monitor their budgets.”
The New York economy was first closed in March 2020 as the COVID-19 pandemic began to spread first. State and local governments have lost billions of dollars in tax revenue as people stay home and lose millions of jobs.
The unemployment rate in New York is still above the national average, but the unemployment rate has recovered since last year.
The 3.9% Q1 sales tax hike is far more than the plunge taken in the spring when tax revenues fell 27.1% between April and June during the first pandemic surge. It’s small.
New York sales tax revenue continues to decline
Source link New York sales tax revenue continues to decline