January 20, 2009

Weitzman: ‘National economic downturn results in declining sales tax for first time since 1990’

Nassau County Comptroller Howard Weitzman said that the latest sales tax distribution check for 2008 brought the County down .64% over 2007 receipts, which means that Nassau County will be closing the 2008 books with approximate $40 million less in sales tax revenue than budgeted. 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.

The last sales tax adjustment check included the post-Thanksgiving shopping weekend, referred to as “Black Friday,” because of the usual surge in purchasing by consumers. However, this year’s “Black Friday” did not live up to its name.

 “The economic cyclone that slammed into Wall Street and Main Street, has now arrived our street,” Weitzman said.  “These latest dismal sales tax numbers were not unexpected and show that Nassau County is not exempt from the national drop in retail sales.”

The County budgeted for zero sales tax growth for 2009.

"We will start 2009 $36.3 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 $86.3 million hole in 2009’s budget.”