COUNTY SALES DOWN 10% IN JAN. FEB. CARRYOVER DEFICIT REACHES $38 MILLION

Hits: 67

WHITE PLAINS SALES DOLLARS EVEN WITH LAST YEAR: RECORD $56 MILLION IN SALES TAX REVENUE POSSIBLE.

WPCNR QUILL & EYESHADE. Statistics from New York State Department of Taxation and Finance. Observation & Analysis by John F. Bailey. April 3, 2024:

Westchester County sales tax receipts continued soft  on revenue of  $132,039,180 the first two months of 2024, down  10% $14,649,682 from the first 2 months of 2023, when the county received $146.7 million.

The trend added to the Westchester County sales tax decline (it ended 2023 with), at a $23.7 million shortfall in projected sales tax receipts. The continued decline unless spending increases robustly raises the  sales tax gap growing monthly to $38 Million.

If this trend continues, the county deficit they ended 2023 with — $23.7 Million dollars below projected sales tax revenue in 2023, could significantly increase.

The county collected $70,697,235 in January 2024 according the New York State Department of Taxation & Finance. In January a year ago, the County collected $79,248,711 (when inflation was running 8 to 9%).

The 2024  February number is $67,440,451 compared to January 2024 handle of $70.697,235. That’s still down 4.6% in a month.

If Westchester sales do not increase sharply the next 10 months it will be hard to make up $38 Million in 10 months. The county needs to increase sales revenues $10 million a month to get back to even in the current sales tax.

The current softness, running about $70 Million monthly if revenues do not increase  will end up at $840 MILLION, around $100 million short.

The county to ask for a sales tax increase from the state of 15% and use fund balance for the rest, leaving the county in fiscal balance in 2025. This is the lowest start to the fiscal year I have seen since I have been following the sales tax barometer.

Can the county use their fund balance to make up deficit?  Can more Governor Hochul help bail out the county? Can the county place a 35% surcharge beginning next month to cover the ballooning deficit. Can spending be slashed 35%.

Right now $840 million is the projected sales tax revenues if sales taxes continue flat and the carry over deficit has to be met. Or perhaps a budgeting finesse can balance the budget. Or we can cross our fingers and hope Westchester residents open their wallets.

Meanwhile on the other side of town

White Plains sales tax revenues have caught up and are on the way to a $56.7 Million sales tax revenue bonanza– all time high.

After 8 months of the White Plains 2023-24 fiscal year, White Plains is at $38,051,172 in sales tax revenues, virtually even with the first 8 months of the previous year, 2022-23 when the city collected $38,185,211…only 1/3 of a percent lower.

If White Plains continues to hit the numbers from last spring in March April, May and June, the city will receive $18,572,365 in tax receipts which will top previous highs in sales tax revenues bringing in $56.7 million

Comments are closed.