May 5, 2009                                            

Weitzman says latest sales tax check shows 10.1% decline over last year

Nassau County Comptroller Howard Weitzman said today that the County’s latest partial sales tax distribution check was $55.8 million for the time period covering March 1 –April 22, 2009, down 10.1% from last year’s check from the same time period, which translates into almost $6.3 million less in revenue in the County’s coffers. Since the start of 2009, the sales tax free fall has translated into a $27.5 million decrease, or 10.3% year to date.

From November 2008 to May 5, 2009, sales tax has declined 8.9%, or $51.1 million, compared to the same period last year.

Suffolk County’s sales tax collections were down 10.3% for the same period; New York City was down 6.5% and Westchester’s numbers were down 9.4%.

Comptroller Weitzman recently joined a panel of economic experts at a briefing hosted by the New York State Society of Certified Public Accountants in exploring the causes of the current economic crisis, prospects for recovery, the impact of the Stimulus Plan on growth and equity markets and the economies of city and county governments.

The Comptroller spoke about how falling sales tax numbers are a direct result of consumers’ unwillingness to spend money.

"Sales tax dropped off a cliff in the last quarter last year,” he said. “It was like everyone got a Twitter: stay home; don’t buy.”      

Most of the panelist agreed that talk of a recovery is still yet premature.

"People are putting their money away and paying down debt,” Weitzman said.

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

“While some economists have optimistically told us to be on the look out for the ‘green shoots’ of a spring recovery, it looks like we are still in need of some Miracle-Gro,” Weitzman said.

See chart below