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Slow Fade: WP Sales Tax Revenues Decline in 6 of Last 8 Months, Down 2.7%, $1 Million
County Sales Tax Dollars Up in 6 of last Months. Up 4.5% 1st Two Months of 2019.
WPCNR QUILL & EYESHADE. From the New York State Department of Taxation & Finance with analysis by John F. Bailey. March 26, 2019:
White Plains is in a slumping economy.
Perhaps March with its inclement weather and March Madness will turn things around.
It has to, because after 8 months of the city fiscal year, the city has earned $33,038,728, $929,896 behind the 2017-18 pace, a 2.7% decline. White Plains sales taxable activity has declined almost 5% below the inflation rate which is about 2%.
Meanwhile, Westchester County is 4.5% ahead the first two months of its new fiscal year, the county economy has grown for the 7th straight month and maintained its average of approximately 5% growth each month. That is more than double the inflation rate.
White Plains, as it plans its 2019-20 Budget, should be concerned.
If White Plains pulls in last year numbers the next 4 months it will receive $49.147 Million in sales taxes.
If the 3% declining rate is continued over the next 4 months, the revenue will erode to $48.664 Million in sales tax receipts.
With labor negotiations in mind, where a 3% increase is expected to be lobbied for by all unions, in line with the precedent the county set in its negotiations, a 3% decline in sales tax revenues (that fund White Plains year to year raises in the payrolls)—
This six month slow fade is worrisome.