Local Government Snapshot

N E W YO R K S TAT E O F F I C E O F T H E S TAT E CO M P T R O L L E R
Thomas P. DiNapoli • State Comptroller February 2010

Change in County Sales Tax Collections 1992 to 2009

County Sales Tax:
2009 Collections and
15%

Moving Average, Year-Over-Year

Percentage Change in 12-Month
Implications for 2010
10%

5%

◙ County sales tax collections (not including 0%

New York City) declined by 5.9 percent in 2009
compared to 2008. Fifty-three of 57 counties -5%

had sales tax declines. Most of the growth -10%

seen in Seneca, Schuyler and Chautauqua

19 2
93

19 4
19 5
19 6
19 7
19 8
20 9
20 0
20 1
02

20 3
04

20 5
20 6
07

20 8
09
9

9
9
9
9
9
9
0
0

0
0

0
counties was due to late payments and other
19

19

20

20

20
technical adjustments. Source: Department of Taxation and Finance, Office of Tax Policy Analysis, Sales Tax Cash Distribution Database;
Additional calculations by Office of the State Comptroller. Numbers not adjusted for tax rate or tax law changes.

◙ 45 of 57 counties distributed a portion of their Sales Tax Collections by Region (County and NYC) Change 2008 to 2009
sales tax to local jurisdictions within their
borders in 2009. Additionally, 19 cities pre-empt

Mid-Hudson
Long Island

Western NY
Central NY

Southern

York City
a portion of the sales tax. Therefore most local

Mohawk
Country
Hudson
District
Capital

Finger

Lower

Valley

Valley
Lakes

North
governments, not just counties, were affected

New
Tier
by the decline in collections. 0%
-1%
◙ New York City’s sales tax collections also -2%
-3%
declined by 5.9 percent from 2008 to 2009. -2.5% -2.6%
-4%
-5% -4.6%
◙ Unlike other recent downturns, 2009 was the -6%
-5.0% -5.0%
-5.7%
first time in recent history that there was actually -7% -6.4%
-5.9%

a decline in county sales tax collections – a -8% -7.2%

-7.1%

sign of the severity of the recent recession. The -9% -8.4%

sales tax decline in 2009 was one of the worst

on record. Quarterly Year-Over-Year Decline 2008 to 2009

◙ Every region of the State experienced a decline First Second Third Fourth
Quarter Quarter Quarter Quarter
in sales tax collections in 2009 as compared 0%
to 2008. The largest decline was in the Lower -1%
Decline Year-Over-Year

Hudson Valley (8.4 percent). -2% -1.8%

-3%
◙ While the rate of decline slowed in the last -4%
quarter of 2009, this was a comparison against -5%
a very weak 2008 period. The decline between -6%
the fourth quarter of 2007 and the fourth quarter -7% -6.3%

of 2009 reflected a cash decline of 8.5 percent. -8% -7.4%

-7.9%

Division of Local Government and School Accountability

 Local Government Snapshot
County Sales Tax Collections 1990-2009
◙ Setting aside changes in any one county’s
sales tax rate or tax base, tax collections are $7.0
$6.5
largely a function of sales activity driven by
$6.0
economic factors such as personal income
$5.5
and employment. Both of these factors are

Billions
$5.0
expected to remain weak in 2010.
$4.5
$4.0
◙ According to the Division of the Budget, the
$3.5
decline in the New York’s sales tax base (i.e.
$3.0
the value of all goods and services subject to
$2.5
the sales tax) was much more severe than in
previous recessions. In 2009-10, the sales 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20
tax base actually shrank by 7.1 percent. Retail
trade and services account for roughly 65 Sales Tax Collections by County, 2008 vs. 2009
percent of the sales tax base.
Westchester*
Putnam
◙ Gross county sales tax collections were $6.2 Washington*
Delaware
billion in 2009, a decline of $400 million from Montgomery*
Greene
the $6.6 billion collected in 2008. In order to Suffolk*
Saratoga*
regain this level, sales tax revenues would Warren*
Sullivan
have to grow by 6.3 percent in 2010. Albany*
Franklin
Schoharie*
Ulster*
◙ The New York State Executive Budget Dutchess*
St.Lawrence*
forecasts 3.7 percent growth in State sales tax Essex
Schenectady
collections for State fiscal year 2010-11. Livingston*
Genesee*
Otsego*
Steuben*
Monroe*
◙ According to preliminary information provided Chenango*
Chemung*
by the New York State Association of Counties, Lewis
Clinton*
most counties prudently budgeted little or no Nassau*
Fulton*
growth in their sales tax revenues for 2010. Onondaga*
Tompkins*
Wyoming
Columbia*
◙ All local governments – including cities, towns Orange*
Orleans*
and villages who receive sales tax distributions Broome*
Madison*
from their counties - need to review their 2010 Rensselaer*
Cortland*
Jefferson*
sales tax projections based upon the weak Herkimer*
Rockland*
results from 2009 and adjust their budgets Erie*
Wayne*
accordingly. Ontario*
Hamilton
Allegany
Cayuga*
Yates
Niagara*
Cattaraugus*
Oswego*
Tioga*
Oneida*
Chautauqua*
Schuyler*
Seneca

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0%

* Counties that share sales tax revenues with local governments.
Source: Department of Taxation and Finance, Office of Tax Policy Analysis, Sales Tax Cash Distribution
Database; Additional calculations by Office of the State Comptroller. Numbers not adjusted for tax rate
or tax law changes.

N e w Yo r k S t a t e O f f i c e o f t h e S t a t e C o m p t r o l l e r