Sales tax revenue once again surged last month across New York, with local governments reporting a combined 15.7% increase over the same time period last year, according to Comptroller Tom DiNapoli's office. 

But the increase in revenue, reaching $1.7 billion in April and a $232 million increase, has coincided with sharply rising inflation in nearly every sector of the economy. 

That makes the added revenue little solace for many local governments, which are also contending with the higher costs of goods. 

“While local sales tax collections in April were strong throughout most of the state, the continued rise in the price of goods and services has increased the cost of doing business for many local governments,” DiNapoli said. “My office is closely monitoring the impact that inflation is having on New York’s economy.”

Sales tax revenue has been strong over the last year as demand has increased following the easing of pandemic-related restrictions, New Yorkers spending stimulus funds and pent-up demand has been unleashed. 

But the demand has added a lot of heat to the economy, leading to an increase in the cost of goods. Prices for food and gas, which is usually not considered in most inflation indexes, have also risen sharply. 

Overall, the price increases are likely fueling the rise in sales tax revenue over the last year. Nearly every county in New York saw year-over-year growth in their tax collections, which DiNapoli's office attributed in part to inflation. 

In New York City, sales tax collections reached $726 million, an increase of 10.% last month. Oswego County's sales tax revenue increased by 113%. Schenectady was the only county to see a decline in revenue, 12.6%.