Mineola, NY-Nassau County Comptroller George Maragos reported the first quarter sales tax revenue declined 14.8% or $35.3 million in 2014 compared to the same period in 2013. This sharp decline continues the weakness in economic activity observed in the previous quarter ending December 31, 2013.
“The significant decline may be attributed to the bad weather during the fourth quarter of last year and first quarter of this year but may also be attributable to longer term trends that are beginning to surface; the nearly flat income growth and the accelerating shift to internet retailing,” Comptroller Maragos said. “In order for the County to meet its 2014 budgeted revenue projections, the sales tax revenues for the remainder of the year must average 6.5% higher compared to the previous year. It is unlikely that this will occur. The County would be well advised to lower its projected 2% budgeted sales tax revenue growth to a decline of 4% for a net decline of 6% in revenues of approximately $70 million.”
Discounting the prior year positive effects from increased spending from Superstorm Sandy recovery, the County would still be down approximately 3.6% year over year and down 5.3% from the level in 2012.
In order to end in balance at year end 2014 immediate steps to reduce planned expenditures or new revenues are necessary.
Connect with Nassau County Comptroller Maragos Online:
http://www.nassaucountyny.gov/1590/County-Comptrollers-Office