Sales tax collections at the local government level in New York increased by more than 21% in early 2022, reaching $901 million more than compared to the first quarter of last year, a report released Friday by Comptroller Tom DiNapoli found.
Collections from the tax overall totaled nearly $5.2 billion. Some of the growth is attributed in part to spiking inflation, which had hit a 40-year high in March.
“Local sales tax collections continue to come in strong. While local governments are collecting more, they are also dealing with some of the same increased costs that consumers and private businesses are,” DiNapoli said. “With prices rising, we’re watching closely to see what impact the rate of inflation and economic volatility is having on New York’s economic recovery.”
New York City saw a steep jump in its tax collections compared to the first quarter of 2021, increasing by 28.5%, the report found. Outside of the city, Broome County saw the highest growth at 24.4%.
The revenue picture may change as state taxes on gasoline of 16 cents per gallon will be suspended starting June 1 and running through the end of December. Multiple county governments have followed suit in recent weeks.