DiNapoli: State sales tax collections up 14%, but inflation a concern

ALBANY — State Comptroller Thomas DiNapoli said Wednesday that sales tax collections were up 14.1% statewide in October, compared with October 2021, in what he called strong growth.

In Nassau County, sales tax was up 13.2% and in Suffolk County, 15.6% in October compared with October 2021.

The comptroller’s office said Inflation is one of the factors for the growth, but the gains also reflect consumer spending. The office had no estimate of how much inflation played in the growth.

Sales tax is a critical revenue for county and local governments and fluctuations have had direct impact on property taxes. Sales tax is also one indicator of the strength of the economy, but DiNapoli has warned local governments to be cautious in spending because of a still uncertain economic outlook.

“October’s sales tax collections saw the strongest monthly year-over-year growth since May, despite the participation of many counties in the gas tax holiday,” DiNapoli said. “However, as inflation continues to increase costs for many municipalities, it is important that local officials recognize that changing economic conditions may impede future collections.”

The gas tax holiday created by the State Legislature and Gov. Kathy Hochul in June suspended part of the state sales and fuel taxes on gasoline to save consumers about 16 cents per gallon at a time when prices were spiking. The gas tax holiday is scheduled to end Dec. 31.

In Nassau County, sales tax revenue was $120.5 million in October, up from $106.4 million in October 2021.

In Suffolk County, October’s sales revenue was $147.1 million, up from $127.2 million in October 2021.

New York City’s sales tax collections jumped by 17.3% in October, or $116 million, over October. 2021.

Statewide, sales tax revenue in October was $1.7 billion, which was a 14.1% gain from $1.5 billion in October 2021. That’s greater growth than during the latest fiscal quarter, July to September, that saw a revenue gain of 10.2%.

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.