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Report Shows Rockland County Has Declining Sales Tax Revenue Compared To 2022; Other Mid-Hudson Counties’ Revenue Rises
A report released by State Comptroller Thomas DiNapoli showed New York State overall local sales tax collections increased 5.1 percent in November compared to the same month in 2022. Local collections totaled $1.81 billion, up $88.6 million compared to the same time last year.
The Comptroller’s Office tracks sales taxes over time and found that for November 2023, compared with November 2022:
- New York City’s collections totaled $815 million, an increase of 5.8%, or $45 million.
- County and city collections in the rest of the state totaled $887 million, an increase of 4.4%.
- Nearly all (55 out of 57) counties experienced year-over-year increases.
But comparing sales tax for the first eleven months of 2023, compared with the first eleven months of 2022, Rockland County did not fare as well. Of the seven counties in the Mid-Hudson region, Rockland was the only county that saw a decrease in sales tax collections when comparing the first eleven months of 2022 to the first eleven months of 2023.
Data for December 2023 is not yet available.
Referring to the Comptroller’s report, a spokesperson for Rockland County said, “[T]hat report is not an accurate reflection of our sales tax revenue as it does not include December, our largest month of the year for sales tax revenue.”
In December of 2022, Rockland County collected $27.1 million in sales tax, which was 9.4 percent of the year’s total collection. The County would need to collect over $32 million in sales tax in December of 2023 to match total collections from 2022.
Based on the Comptrollers report, sales tax collections were down almost 2 percent year over year. Westchester’s sales tax collections were relatively flat at a .1 percent increase. Putnam, Ulster and Sullivan counties showed robust growth.
Collections in Rockland were down $5 million dollars, year over year: Collections for 2022 were $262.4 million, compared to $257.4 million in 2023.
Sales taxes are the counties main source of revenue. The 2024 Rockland County budget anticipates collections of $285 million dollars in sales tax in 2024.
Robust collections in the past have enabled the Rockland County to eliminate the Residential Energy Sales Tax, the Motor Vehicle Registration Tax, and facilitated a temporary reduction in the county’s portion of the tax on motor fuel purchases. The County has also been considering eliminating its hotel/motel occupancy tax, according to a source close to the budgeting process.
Sales tax in Rockland County is 8.375 percent of taxable items like clothing, appliances and cars. Of that, 4 percent is the state’s share, and .375 percent goes to the MTA. The other 4 percent, collected by the county, is shared by Rockland’s towns and villages.
Sales tax allocations are made in accordance with sharing agreements between the counties and their cities, towns, and villages. Sales tax sharing agreements are required when county sales taxes are allocated on a basis other than population. All sales tax sharing agreements must also be approved by the State Comptroller.
Shortfalls in County sales tax revenue pass through to the towns as the towns share a percentage of collected revenue. Rockland County shares about 6% of collected revenues with the towns and villages.
Towns and villages depend on that revenue when preparing their fiscal year budgets. Clarkstown budgeted $5.3 million in revenue from its share of 2024 county sales tax. Ramapo budgeted $2.4 million, Orangetown $2.1 million; Stony Point $800,000; Town of Haverstraw $700,00, Village of Haverstraw $320,000.
December sales tax revenue may help close the gap a bit because of holiday shopping, but December sales tax revenue in 2022 fell 6.2% as compared to 2021, from $28.9 million in 2021 to $27.1 million in 2022.
The next quarterly (for October through December) and year-end numbers will be available later this month.
