(WNY News Now) – Local sales tax collections in New York state surged by 2.3% in October, reaching $1.84 billion, marking a $41 million year-over-year increase, according to State Comptroller Thomas P. DiNapoli.
New York State saw a positive boost in local sales tax collections for October, with total collections amounting to $1.84 billion, a 2.3% increase compared to the same month last year. This growth, driven primarily by New York City, has provided a more favorable outlook after a month of stagnation in September.
State Comptroller Thomas P. DiNapoli highlighted that the increase was largely due to the performance of New York City, which experienced a 4.1% rise in collections, equating to an additional $33 million for the city. Specifically, New York City’s collections reached $842 million, significantly contributing to the statewide increase.
“October growth in statewide sales tax collections was led by New York City, buoying monthly performance after virtually flat statewide growth in September,” DiNapoli said in a statement. However, he also cautioned that the recent volatility in sales tax collections could impact local governments as they prepare their budgets for the coming year.
Outside of New York City, counties and cities across the rest of the state collectively saw a slight increase of 0.4% in collections, totaling $884 million. A majority of counties—36 out of 57—reported year-over-year increases, reflecting a steady, if modest, improvement in local tax revenues.
The data, which was released today by the state Department of Taxation and Finance, comes from the monthly cash distributions to counties and tax-imposing cities. These distributions are based on estimates of the taxes each municipality is owed, and adjustments are made quarterly to reflect the actual sales by vendors.
While the positive trend in October offers some relief, DiNapoli’s warning about volatility suggests that local governments should remain cautious as they finalize their financial plans for 2025. The next quarterly sales tax data for the months of October to December will be released in January 2025, which may offer further insight into the state’s economic recovery and trends in consumer spending.
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