Long Island sales tax revenue rises, but less than the statewide average

ALBANY – Local sales tax revenue, a key indicator of economic health, increased in Nassau and Suffolk counties in July compared with the same month in 2020, but at a lesser rate than the state average, according to a report released Thursday by state Comptroller Thomas DiNapoli.

Nassau’s sales tax revenue increased 1.7% in July compared with July 2022, while Suffolk’s revenue grew by 1.8%. Statewide, local sales tax revenue increased 3% during the period.

Both counties had more robust increases in sales tax in June compared with June 2022: Nassau’s increased 3.1% over that period while Suffolk’s increased 5.5%, according to DiNapoli’s report.

“Local sales tax growth in July continued at a moderate pace, similar to growth rates from before the pandemic,” DiNapoli said. “This may be slower than some local officials anticipated after two years of more robust growth, making careful cash flow monitoring especially important.”

Counties are increasingly reliant on sales tax revenue as local officials minimized tax increases, according to the New York State Association of Counties.

“Sales tax cash payments to counties and New York City through July show continued COVID recovery for New York City, but it also highlights a slowing of growth for the 57 counties as we move further into the year,” said a NYSAC’s report released this week that tracked sales tax revenue.

“The economy is stronger than expected leading to concerns of more inflation above the 2% target,” said Stephen Acquario, executive director of NYSAC. “Current trends now indicate a leveling to pre-COVID levels of between 3% and 4%, perhaps resetting to that new norm.”

The local share of the sales in Nassau and Suffolk counties is 4.25% of most purchases in stores and online. Only three of the state’s 62 counties and New York City have higher local sales taxes. The state’s additional share of sales tax is 4%.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.