ALBANY — Steady consumer spending and strong inflation is boosting sales tax revenue sharply so far in 2022.
The state Comptroller’s Office reported Wednesday that sales tax collections by Capital Region governments in the first four months of this year are up 14.9% compared with the same four months of 2021.
But inflation cuts both ways for local governments, state Comptroller Thomas DiNapoli said in a news release: As their revenue is increasing, so too are their expenses.
“My office is closely monitoring the impact that inflation is having on New York’s economy,” he said.
Inflation is at a 40-year high, with the consumer price index climbing approximately 7% in 2021 and continuing to rise sharply in 2022. But many people are earning higher wages, as well, and spending what they earn.
For the first four months of 2022, local governments in the Capital Region collected $304.6 million in sales tax, up from $265.2 million in the same period of 2021, $227.4 million in 2020 and $235.8 million in 2019.
Looking at April alone, Schenectady County at -12.7% was the only county in the state that saw a year-over-year revenue decrease. But it had by far the largest year-over-year increase (+130.9%) in the state in April 2021.
The 2021 spike was the result of a business losing a long-running appeal, County Manager Rory Fluman said Wednesday, and the drop in 2022 reflects the fact that it was a one-time phenomenon.
April notwithstanding, the trend is going in the right direction so far this year, Fluman said.
Schenectady County’s sales tax revenue for the first four months of 2022 far exceeded the same periods of 2020 and 2019.
Here are the sales tax collections for area municipalities for the first four months of 2022 and the percentage change from the same period of 2021:
- Albany County $108M 17.9%
- Fulton County $9M 16.3%
- Gloversville $1.5M 7.6%
- Johnstown $1.7M 25.9%
- Montgomery County $13.7M 16.7%
- Rensselaer County $37.5M 16.1%
- Saratoga County $50.6M 13.8%
- Saratoga Springs $4.4M 18.7%
- Schenectady County $40.8M 2.3%
- Schoharie County $6.6M 19.5%
Sales tax collections by all local governments in the state increased 19.7% in the first four months of 2022 over the same period in 2021, to $6.88 billion.