Weitzman on sales tax: Have we bottomed out?

Sales tax receipts down 10.1% from last year: still showing no increase in consumer spending

Nassau County Comptroller Howard Weitzman said today that County sales tax receipts have declined 10.1% from last year, which translates to $54.7 million less in County coffers. The latest sales tax distribution check, in the amount of $11.5 million is $1.5 million or 11.5% below last year’s check of $13 million.

"While some recent economic reports have been slightly optimistic,” Weitzman said, “that optimism is not yet reflected in sales tax revenue. I anticipate that we will begin to see some positive growth in the fourth quarter.”

Total cash collections since January 1, 2009 are down statewide by 10.4%. Nassau County is down 12.08%, Suffolk by 14.12% and Westchester by 12.60%.

According to the U.S. Commerce Department, U.S. consumers spent more in June than in the previous month by 0.4%, but that was due in part to higher gas prices. The Labor Department recently reported less layoffs in July, as employers cut 247,000 jobs, the fewest in a year; and the unemployment rate saw its first decline in 15 months at 9.4%.

"Many of the federal government’s actions to jump start the economy will start to be felt as consumers begin to unlock pent-up spending, but we are not seeing that in checks that we are receiving now,” Weitzman added.

The $11.5 million sales tax check included $266,793 in residential energy tax.

See chart below:

sales tax 08-12-09