Nassau County Comptroller George Maragos reported that the County’s 2014 sales tax receipts declined by 5.8% year-to-date or $47.5 million compared to the same period in 2013. At this rate, the projected annual sales tax revenues will be approximately $90 million less or 5.8% lower than the County’s 2014 adopted budget of $1,166 million.
“Although the Administration has made attempts to modify the budget due to this sales tax decline, the sluggish economy has been a major hindrence,” Comptroller Maragos said. “Flat consumer income growth and shifts to online purchasing continue to look like the new norm. The Administration and the Legislature need to reduce the current projection for sales tax growth in the 2015 proposed budget.”
Sales tax is the County’s largest source of revenue, accounting for approximately 40% of budgeted revenues.