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Going against statewide trend, St. Lawrence County sales tax collection went up in 2014

Posted 2/3/15

CANTON -- St. Lawrence County saw a 30 percent increase in sales tax revenues, but most of the state wasn’t so lucky, according to a report from the state comptroller. The increase is due, at least …

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Going against statewide trend, St. Lawrence County sales tax collection went up in 2014

Posted

CANTON -- St. Lawrence County saw a 30 percent increase in sales tax revenues, but most of the state wasn’t so lucky, according to a report from the state comptroller.

The increase is due, at least in part, to a 1 percent hike in the county’s sales tax that was enacted in 2013. Throughout most of the state, county sales tax collections grew at a much slower rate. The county sales tax growth, excluding all cities, was 1.3 percent from 2013 to 2014 – significantly lower than the 3.8 percent growth experienced from 2012 to 2013.

The report states sales tax collections across the state in 2014 suffered the slowest annual growth since the end of the 2008-09 recession. Collections across the state grew by $439 million, or 3 percent, from 2013 to 2014. In 2013, the growth rate was 5.2 percent. New York’s 15-year annual average growth in sales taxes is 4.2 percent.

The strongest 2014 sales tax growth was in the North Country, which increased 7.7 percent. Much of this can be explained by increases in sales tax rates in three counties that took effect in late 2013, but were in place for all of 2014. Essex and Lewis counties increased their tax rates from 3.75 percent to 4 percent, while St. Lawrence County increased its rate from 3 to 4 percent.

“Municipalities across this state know all too well the volatile nature of sales tax revenue in uncertain economic times,” said Comptroller Thomas DiNapoli. “When our local governments have slower-than-expected revenue growth, the results can have a serious impact on their budgets now and in the future. As the 2015 fiscal year unfolds, I recommend local leaders continue their vigilance in monitoring their revenues and spending and be ready to tighten their belts should this slowdown continue.”

The report can be seen here http://osc.state.ny.us/localgov/pubs/research/snapshot/localsalestaxcollections0215.pdf