New York City and other local governments in the state saw sales-tax collections surge for a second straight year as inflation pushed prices higher and consumers continued spending while the pandemic receded.
(Bloomberg) — New York City and other local governments in the state saw sales-tax collections surge for a second straight year as inflation pushed prices higher and consumers continued spending while the pandemic receded.
State Comptroller Thomas DiNapoli said Monday that statewide the collections rose $2.5 billion, or 12.7%, to $22.1 billion in 2022. That followed a 19.1% jump in 2021.
The increase was particularly large in New York City, which saw a 20.6% gain as commuters returned to work and tourism rebounded.
The sales-tax surge has contributed to the strong financial footing of local governments, which also gained from a flood of pandemic-era aid from Washington and the solid pace of the broader US economy.
“Sales tax growth has remained strong for a sustained stretch as consumers resumed spending relatively quickly after pandemic shutdowns ended,” said DiNapoli, who also credited the state’s moves to bolster collections from online sales.
The pace of growth has been slowing, however, as revenues rise from a more normal base after dropping steeply during 2020. The local sales-tax collections were up 8.8% in the three months ended in December from a year earlier, down slightly from the rate in the previous two quarters.
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