June 5, 2009                                        

Weitzman says latest sales tax check shows 10.7% decline over last year

Nassau County Comptroller Howard Weitzman said today that the County’s latest partial sales tax distribution check was $56.7 million for the time period covering part of April and May 2009, down 10.7% from last year’s check from the same time period, which translates into almost $7.8 million less in revenue in the County’s coffers. Since the start of 2009, the sales tax free fall has translated into a $36.9 million decrease, or 10.7% year to date.

“Sales tax figures right now are closely following trends from 2005,” said Weitzman. “In 2005, we had received $307.4M in sales tax revenue at this point compared to the collections to date this year of $307.8M. If trends continue to follow 2005, we will end 2009 with sales tax revenue declining $49.3M or 4.9% under 2008 sales tax receipts. This would give the County $85 million less in sales tax revenue than budgeted. While this is by no means ‘good news’, it’s better than our earlier prediction that sales tax could drop $100 million under budget.”  Sales tax accounts for approximately 40% of the County’s budget.