Local sales tax collections across New York grew by $650 million, or 5 percent, in 2011, a slower rate than the previous year, according to a report released today by State Comptroller Thomas P. DiNapoli. Sales taxes are an important source of revenue for New York State’s local governments, helping them cope with the rising cost of providing services and mitigating property tax increases.
“The positive growth last year in sales tax collections are a good sign for the economy, but continued caution is warranted,” DiNapoli said. “New York’s economy has improved over the past two years, but growth has been sluggish and unevenly distributed throughout the state. The degree to which local governments depend on sales taxes varies, but it is an important source of revenue for many. As localities adjust to the property tax cap, more may turn to sales tax revenues to fill in budget gaps.”