Local sales tax receipts across the state have taken a sharp fall during the first seven months of 2009, including in Saratoga County, where county sales tax revenue was down 10.1 percent or more than $5.6 million when compared to the same time period last year, state Comptroller Thomas DiNapoli said Monday, Aug. 31.
Saratoga is one of six counties that experienced a double-digit decline, according to the report that examined records from the state Department of Taxation and Finance. Collectively, county sales tax receipts were down 7.6 percent, or $291 million, in New York’s 57 counties. Just four counties posted a gain in collections.
Saratoga County Administrator David Wickerham questioned the accuracy of the data used in the report.
`We know that sales tax is off, but for us to be off more than the surrounding counties doesn’t make much sense,` he said.
He estimated that a drop in the price of gasoline year-to-year, consumer spending cutbacks on big-ticket items and, of course, a more cautious consumer attitude in general are contributing to a slide in sales tax revenues, but noted that those problems are not unique to Saratoga.
`All those things don’t just affect us, they affect our neighbors and affect every county in the state,` said Wickerham.
The traditional best months for tax receipts are yet to come, as well. September and December are typically the biggest retail months, as consumers flock to stores for back-to-school and holiday shopping. In Saratoga, in particular, August is a boon for the economy as thousands visit the track and nearby establishments.
`We haven’t gotten the sales tax figures in for the summer season,` said Saratoga County Chamber of Commerce President Joseph Dalton, who also questioned the accuracy of the figures. He said that going into 2009, county officials expected business to be off anywhere from 5 to 15 percent, but from his position he hasn’t seen the downturn.
`Most of the people we’ve been talking to, the figures look about the same as last year,` said Dalton.
In a statement, DiNapoli acknowledged that back-to-school spending could make a significant impact on revenue figures, but advised that now is the time to act on the available data.
`Just like the state, if local governments are not on track to meet their budgeted revenues for the year, they need to make adjustments in their spending now without placing a greater burden on local taxpayers,` he said.
As he often has during the ongoing economic downturn, Dalton said that Saratoga County remains a good location to weather out the storm with relatively healthy and diversified business and industry.
`When you look at the economy in Saratoga County, you have a lot of legs to it,` said Dalton.
As in many areas in New York, Saratoga County distributes its sales tax revenues to municipalities. Of the 7 percent sales tax rate in Saratoga, 4 percent is retained by the state.
Saratoga Springs is the only municipality to not receive county sales tax, having opted out of the equation in 2001.
The county planned to use $3 million from its general fund to balance this year’s budget, and if revenues are off, it’s likely the roughly $25 million contingency will be raided further. County officials have also been aggressively seeking to cut costs all year.
`It’s a little early to make that determination,` said Wickerham when asked about meeting tax projections. `Certainly the trends are not in a good direction.`
In 2008, county sales tax revenues fell $1.7 million short of projections.
Statewide, just four out of New York’s 57 counties experienced positive growth in sales tax receipts when compared to the same time period last year, according to the report. The declines translate into $291 million in lost county sales tax and $640 million in lost local sales tax collections (New York City included).
DiNapoli’s report also noted that sales tax collection represents a significant part of county revenues ` 27 percent in 2007 versus 21 percent in 1997.“
