April 9, 2009                                                  

Weitzman ‘Consumers saving, not spending.’

Nassau’s latest sales tax check 25.9% lower than last year’s, down 10.4% year to date

Nassau County Comptroller Howard Weitzman said today that the County’s latest sales tax check for 2009 in the amount of $21.6 million was 25.9% below last year’s check of $29.1 million, $7.5 million less than last year’s check and a $21.2 million decrease, or 10.4% year to date decline, the largest in the history of the County. Nassau County is one of the most sales-tax dependent counties in the nation, relying on sales tax for approximately 40% of the budget.

“Fear of the economy has turned consumers from spenders to savers in recent months,” said Weitzman. “The national savings rate has increased from 0% to 5%, and outstanding credit card debt is going down. While in the long run, this is a very positive development for our country, the transition is very painful for retailers and governments.

"The County must persist as soon as possible with its budget adjustments and prepare for a difficult 2009 and 2010. We remain hopeful that the recession will end towards the end of 2009 and consumers will regain their confidence.”

The $21.6 million check covered the period February 1, 2009 –February 28, 2009 and includes all New York State quarterly adjustments for the period December 1, 2008 to February 28, 2009 (The state’s quarter covers December, January and February). From November 2008 to April 10, 2009, sales tax has declined 8.8%, or $44.8 million, compared to the same period last year.

See chart below

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