Long Island Quarterly Sales Tax Revenues Show Small Increase

By Hank Russell

A recent report from New York State Comptroller Tom DiNapoli’s office showed that Long Island’s sales tax revenues rose by only 0.1% in the second quarter of 2024 over the same quarter last year. From April to June of this year, revenues were at $881.4 million, whereas, during Q3 2023, the amount was $880.5 million.

Long Island was tied the Mid-Hudson region as having the smallest revenue increase. North Country had the largest increase with 6.6%. The only good news for Long Island was that it was an improvement over the previous quarter, when revenues were down 1.7%. The first-quarter figure of $823.6 million was 7% lower than it was this quarter.

Statewide, sales tax collections were up 2.2%. 

When examining the numbers on a month-to-month basis, both Suffolk and Nassau saw a yearly decline of 2.9% in April before their figures improved in May and June. However, that was the norm, said Nassau County Comptroller Elaine Phillips. “There were very few areas [in the state] that saw increases [in April].”

 Suffolk County Comptroller John Kennedy said consumers’ trepidations attributed to the decline in revenue. “As to what was a sudden downturn [in April], I offer to you that it’s just an indication of the impact of inflation,” he said. “People are worried about the state of the economy. They have to make the shift in spending.”

However, in Suffolk, revenues were up 0.8% in May and, In June, it was up 1%. Kennedy attributed that to “the tourism economy,” when more tax revenues are collected through visitors when they stay at local hotels, shop and eat at restaurants within the county. “Tourists are the best source of revenue,” he said.

During the month of May, Nassau’s revenues were up 0.7%; in June, Nassau saw a 3.0% increase.

According to Phillips, 44% of the revenue that comes into the county is sales tax revenue. She also said that she assures local businesses that the county government supports them. “We make sure [the businesses] have what they need to stay in business. … We tell them, ‘If you do well, then the Nassau taxpayers will do well.’ It means [Nassau government] is less likely to raise taxes.”

Speaking on the results of the report, DiNapoli stated, “Growth in local sales tax collections has moderated, as both personal consumption and inflation cooled through the second quarter. New York City was again the largest single contributor to local sales tax growth, and its moderate increase in collections reflects in part a tourism industry that continues to improve.”