Dollar ScoreCard: White Plains Snaps 4 Year Sales Tax $$ Decline. Sales Tax Receipts Behind Inflation. Perhaps a decline in Downtown Patronage of 10%

 

WPCNR QUILL & EYESHADE News & Comment  by John F. Bailey, June 26,2018.

It will not be official until July 19.

The City of White Plains , the New York Mets of the sales tax league in New York State may snap its 4-year sales tax revenues decline (since 2012-13)

But unless White Plains sets an all time sales tax receipts record in June, the city is going to be in severe revenue trouble,  preparing the 2019-2020 budget, but should make $414,000 more in sales taxes revenues for the fiscal year ending June 30 (2017-18).

The May 2018 sales tax figures revenue for the city of White Plains is in from the New York State and it is flat with last May’s figure, so if it remains flat in June and earns the $4.3 Million the city got last June, it will cash $49,724,199 in sales tax revenues up POINT ZERO EIGHT percent (1%) from last year’s $49,310,342.

This is a $2,131,988 decline in sales taxes since 2013-14 when the city received its all time high in sales tax dollars, $51,856,187.

Of course, I am rooting for the city to smash that $4.3 Million figure of last June with a lovely $6 Million sales tax handle in June which would finally get us back to the 2013-14 economy.

Like the Mets, the city has snapped its 4 year sales tax losing streak, and without benefit of adding a sales tax increase (an additional hitter).

In April 2018 we were up 6.7% to $3,756,339, the biggest increase in 4 years. In May we were even. This means that the 6% shortfall projected by us at the end of April, stands to be made up with a good June of $4.3 million, surpassing 2016-17 fiscal year sales tax of $49.3 Million, by 1%.

However,  the City of White Plains is overlooking a factor that shows consumers are not patronizing restaurants, malls, and retail the way they used to.

In fact, the people coming to White Plains to shop may have declined significantly up to 10%

If the city had gained 2% in sales tax receipts each year (the rate of yearly inflation since 2013-14), we would have a sales tax handle this year of  $56,130,802, assuming a 2% inflation rate.

If we hit the $49.7 Million mark with a $4.3 Million June sales tax figure, then for the fiscal year, this means White Plains due to lack of economic activity producing sales taxes, or whatever reason, it is not where it should be in sales tax receipts.

Take your pick: parking enforcement keeping persons away, retail vacancies, internet sales loss, take your pick of what might be causing this.

$4,274,615 BEHIND INFLATION

If activity had stayed the same  in the White Plains downtown the last 4 fiscal years,  with the same amount of people exercising purchasing power in the city, by inflation alone, the city should be  $4,274,615  ahead of the $49.7 Million projected for this year.

Take a look:

WHITE PLAINS SALES TAX GROWTH ASSUMING 2%  INFLATION

 COMPOUNDED FOR 4 YEARS THROUGH 2017-2018.

2013-14    $51, 856,187

2014-15: $52,893,310 (includes $1,037,123 inflation)

2015-16: $53,951,176 (includes $1,057,866 inflation)

2016-17: $55,030,199 (Includes $1,079,023  inflation)

2017-18: $56,130,802 (includes $$1,100,603 inflation)

You might assume that White Plains sales tax receipts fueled by  persons spending in the down has suffered from decline in White Plains consumers upwards of 10%.  If I were the city I would pay attention to this obvious discrepancy.

 

Comments are closed.