February 12, 2009    

Weitzman says 2008 ends with a whimper as year end sales tax receipts show 1% decline

Last 2008 sales tax check from State down 5.8% from last year’s collections

Nassau County Comptroller Howard Weitzman said today that the County received its final sales tax distribution check for 2008 and the closing numbers were down 0.9% from 2007 receipts, which means that Nassau County will be closing the 2008 books with approximate $37.5 million less in sales tax revenue than budgeted. Latest sales tax collections for 2009 remain down 3.3% from last year’s, a number which translates into $1.2 million.

 “This just confirms our projections,” said Weitzman. “The County will end 2008 with a real 1% decline in sales tax, the first such decline since 1990.”

From November 2008 to February 12, 2009 sales tax has declined 7.7% 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.

"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.