WPCNR QUILL & EYESHADE. By John F. Bailey. January 12, 2010: White Plains retail suffered its worse December in sales since 1998, according to December sales tax receipts released to WPCNR by the New York State Department of Taxation and Finance. County figures showed a 3% year-to-year decline, but overall the county ran a $63 Million deficit in fiscal 2009 just ended.

The December White Plains figure was $3,024,008.63, $1,263,425.91 below the $4.3 Million collected in December 2008 – a 30% decline. Halfway through fiscal year 2009-10, White Plains has collected $21.6 Million in sales taxes when it budgeted for $47.3 Million.

If the present 11.2% decline in sales tax receipts continues, the city faces a 15%  tax increase just to make up for the projected $5 Million loss in sales tax receipts.

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If the city matches 2009 figures for January through June 2010 ($21,947,876) White Plains will generate a sales tax of  $43,563,454, the lowest total since 2006-2007. This would leave the city with a $4 Million deficit in sales tax equivalent to about 12% tax increase to stay even. The city would be forced by law to budget about $44 Million in sales tax as a result in preparing the 2010-11 budget.

The city is continuing to run a deficit in sales tax collection of 11.3% the first six months of the fiscal year July-December 09  ($21.6 Million the last six months compared to $24,362,919 July 08 to December 08).  If this 11.3% downward trend continues, White Plains deficit in sales tax projects to $5.2 Million – about a 15% tax increase just to keep the city tax revenue where it is.

County Runs $63 Million Deficit

Westchester County sales tax ended the year $2 Million off  ($39,605,568.99) in its December sales tax handle, only 3% off last year’s December figure of $41 Million in sales – while White Plains was down 30% in December.

Westchester County ended its sales tax collections year $47,785,645 behind  its 2008 collections, a 10.3% drop.October, November and December cut the deficit the sales tax had been running from 13% to 10.3%. The county had budgeted $478 Million in sales tax receipts for the year,and made up the $63 Million shortfall(as projected by WPCNR six months ago).

Budget cuts and additional  Federal Medicaid Appropriations money filled the $63 Million budget hole, according to the Westchester County Department of Communications.