News Flash Home
The original item was published from 2/13/2015 12:41:00 PM to 2/13/2015 12:42:43 PM.

News Flash

County Comptroller News Releases

Posted on: February 13, 2015

[ARCHIVED] Maragos: Final 2014 Sales Tax Receipts $70.7M Lower Than Budget

Nassau County Comptroller George Maragos reported that the County’s 2014 sales tax receipts ended at $70.7 million or 6.1% under the adopted 2014 budget. Strong national retail sales in the fourth quarter helped prevent a worse outcome than feared at mid-year. But still there was zero growth in local sales tax. This is the first year since 2009 that year over year sales tax revenues have actually declined, and the first time during national and regional economic expansion.
“We seem to be witnessing a paradigm shift in our local economy being reflected in the sales tax revenues,” said Comptroller George Maragos. “The County economy appears to be growing slower than the regional and national economies, people have yet to see wage growth and the shift to online purchases is having an accelerating negative impact on local business.”Assuming these slower economic growth trends continue, then the County 2015 budget will likely be negatively affected by about $30 million in lower sales tax revenues than budgeted. The Administration, the Legislature and NIFA are strongly urged at this early stage of the year to take steps to find other revenue sources or reduce expenses to fill the $70 million gap created from $30 million lower projected sales tax revenues, $30.7 million in lost revenues from the repeal of speed cameras and $9 million in unrealized Off Track Betting (OTB).
For the County to achieve its 2015 budgeted sales tax revenues, an increase of 4.8% increase would be necessary. A more reasonable expectation would be a 2% growth as shown in the table below resulting in approximately $30 million in lower sales tax revenues than budgeted. Sales tax is the County’s largest source of revenue, accounting for approximately 40% of budgeted revenues.

Sales Tax Revenues

Year                    Total Revenues                  % Growth

                                                                        Rom Prior Year

2010                            $0.992                              6.7%          

2011                            $1.028                              3.6%                      

2012                            $1.070                              4.2%                      

2013                            $1.138                              6.3%

2014                            $1.091                             -4.2%

2015 (projected)        $1.113                                2.0%

Connect with NC Comptroller Maragos Online
Facebook Twitter Email