March 5, 2009                                              

Weitzman says sales tax continues free fall

Latest 09 check shows 8.9% decline

Nassau County Comptroller Howard Weitzman said today that the County’s latest sales tax distribution check for the time period covering January 1 – February 22, 2009 was down 8.9% from last year’s check from the same time period, which translates into almost $5.3 million less in revenue in the County’s coffers. Since the start of 2009, the sales tax free fall has translated into a $6.5 million decrease, or 6.7% year to date.

If sales tax receipts continue at this rate, the Comptroller’s office projects that the county will receive approximately $936 million in sales tax revenue for 2009, which is approximately $100 million less than the amount the County budgeted for.

 “This just highlights the need for the County to act quickly and decisively to close the 2009 budget gap,” said Weitzman, which is projected to be as high as $150 million.

From November 2008 to March 5, 2009, sales tax has declined 7.5%, or $30.2 million, compared to the same period last year.

"Relief from the federal economic stimulus package and the much-discussed deficit-closing measures of the administration can’t come fast enough,” Weitzman added.

Sales tax accounts for approximately 40% of the County’s budget.

See chart below