State Comptroller Tom DiNapoli reported last week that local sales tax collections in 2014 suffered the slowest annual growth since the end of the 2008-09 recession. Throughout the state, collections grew by 3% ($439 million), from 2013 to 2014, after increasing by 5.2% the previous year.
Comptroller DiNapoli said:
“Municipalities across this state know all too well the volatile nature of sales tax revenue in uncertain economic times. When our local governments have slower-than-expected revenue growth, the results can have a serious impact on their budgets now and in the future. As the 2015 fiscal year unfolds, I recommend local leaders continue their vigilance in monitoring their revenues and spending and be ready to tighten their belts should this slowdown continue.”
This is obviously something that we keep an eye on. Sales tax revenues are not only important for local governments to pay for important services, but they are something of a proxy for the health or a region’s economy.