February 5, 2009                                              

Weitzman says latest sales tax receipts continue to plummet in Nassau County

Latest 2008 sales tax check from State down .8%; 2009 collections down 3.3%

Nassau County Comptroller Howard Weitzman said today that with the latest sales tax distribution check, 2008 is down .8% from 2007 receipts, which means that Nassau County will be closing the 2008 books with approximate $40.6 million less in sales tax revenue than budgeted. Latest sales tax collections for 2009 were down 3.3% from last year’s, a number which translates into $1.2 million.

 “Nassau County sales tax continues to free fall,” said Weitzman. “From November 2008 to February 6, 2009 sales tax has declined 7.8% compared to the same period last year. If this trend continues, sales tax alone will put a $120 million hole in the County’s 2009 budget. With the projected 1% decline for 2008, 2009 will be the first time ever that sales tax declines two calendar years in a row. This reinforces the need to move aggressively on the revenue and cost reduction goals presented by the County Executive.”

Sales tax accounts for about 40% of the County’s budget. Weitzman added that it is the first time since 1990 that the County has received less sales tax than in the previous year.

"This latest sales tax receipt was not really a surprise, but nonetheless, it sets the stage for a devastating start to 2009,” he said.  “Nassau County is not exempt from the national drop in retail sales, the loss of jobs, the reduction of bonuses on Wall Street and other factors that stimulate Nassau’s economy.”

The County budgeted for one half of one percent sales tax growth for 2009. The final 2008 sales tax collections check is due on February 12.

"We will start 2009 $31.2 million under budget,” Weitzman added. “Local economists predict sales declines of up to 5% which would result in sales tax receipts falling further, leaving an $82.6 million hole in 2009’s budget.”