December 31, 2008

Weitzman: ‘Sales tax may decline for first time since 1990’

Nassau County Comptroller Howard Weitzman said based on the latest sales tax distribution check for 2008, he projects the County is on track to receive $24.2 million less in sales tax than the amount in the County’s 2008 budget.

"“Nassau County is not exempt from the national drop in retail sales,” Weitzman said. “Since reports of the holiday sales have been uniformly weak, it is possible we could end 2008 with lower sales tax receipts than 2007.”

"As for 2009, since that budget assumed zero growth but was based on a higher 2008 projection, we will start the year at least $20 million under budget,” Weitzman added. “Making matters worse, noted economists predict retail sales may decline up to 5%, which would result in sales tax receipts falling further.”

"It is now possible that for the first time since 1990 we will receive less sales tax in 2008 and 2009 than in the previous year,” Weitzman added.