#NY sales tax revenue down 7.8 percent due to COVID-19

ALBANY — Sales tax revenue in New York’s cities and towns plunged by an average of 7.8 percent last month compared to figures from August 2019, according to a new report.

New York City’s sales tax revenue declined by 7.1 percent, or $43.9 million, which was slightly below July’s 7.3 percent recorded losses, or $44.6 million.

Overall, August’s sales tax collections were $111 million below intake compared to Aug. 2019 — at a combined $1.3 billion for counties and cities.

The monthly data released by state Comptroller Tom DiNapoli’s office depicts the continued hit that the COVID-19 crisis has taken on the state economy, but is also an improvement from the April to June quarter — when sales tax was down statewide by 27.1 percent.

“Since the pandemic hit, local governments have seen a massive drop in sales tax collections. This is hurting their bottom lines and many have few options to plug the hole,” said DiNapoli in a statement Thursday.

“Washington needs to stop playing political games and provide financial help to local governments to weather this storm.”

Gov. Andrew Cuomo, Mayor Bill de Blasio as well as a chorus of state and local government officials have been lobbying Washington for months seeking an increase in coronavirus relief aid.

The Empire State’s top budget officials have estimated New York will need $30 billion over the next two years to fill the gap deepened by the pandemic, in addition to billions sought by the MTA and Port Authority.

New York City’s own $9 billion hole has prompted de Blasio to seek a long term, billion-dollar loan from Albany and has repeatedly threatened potential layoffs of city employees.

On Wednesday, the mayor announced he along with nearly 500 other employees will participate in a week-long furlough estimated to save just under $1 million.