New York State is facing extraordinary challenges as a result of the coronavirus pandemic. Its punishing impacts include shutting down much of the economy, throwing millions of Americans out of work, and devastating State finances.
New York State imposes a "general sales tax" at a single rate on most goods and some services. Counties and cities can impose their own local sales tax in addition to the State rate. This report is an update to the Office of the State Comptroller’s March 2015 publication on local government sales taxes in New York State.
New York’s Alexander Hamilton played a central role among our nation’s Founders, as the Broadway musical bearing his name reminds us. One of the questions Hamilton analyzed as he sought to build support for a stronger central government was the potential for “inequality among the States” in paying federal taxes. Well over two centuries later, that issue remains a national concern.
The report summarizes most recently completed data (fiscal year ending 2018) found in these annual reports. In addition to reviewing IDA data, the Office of the State Comptroller (OSC) provides training to IDA officials on various topics, including recent legislative reforms and how to improve their compliance with reporting requirements.
Sales tax revenue for local governments in the second quarter of 2020 totaled $3.3 billion, a decline of $1.2 billion compared to the same period last year.
Sales tax collections for local governments in July totaled $1.3 billion, or $116 million less than in July 2019.
Local government sales tax revenue declined by 7.8 percent, or $111 million, in August compared to the same month last year.
The Metropolitan Transportation Authority (MTA) is facing the greatest challenge in its history.
The COVID-19 pandemic has significantly impacted the securities industry in New York City, affecting both operations and profitability.
Statewide local sales tax collections in the third quarter of 2020 declined by 9.5 percent, or $452 million, over the same quarter in 2019. This decrease, while alarming in a typical year, was still a marked improvement from the 27.1 percent drop in the second quarter, which reflected the peak of the economic impact to date from the COVID-19 pandemic.
