New York State Comptroller, Thomas DiNapoli, has reported that local sales tax collections across the state rose by 14.1% in February 2023 compared to the previous year. While local collections also increased, they rose at a slower rate. Overall, local collections totaled $1.64 billion for the month, up $203 million compared to the same time last year. Allegany County reported $2.17 million in sales tax collections in February 2023, up 9.2% from February 2022. Cattaraugus County reported $3.68 million in receipts, up 9.6% from the previous year. The city of Olean, however, saw a decrease in receipts, with only $347,048 in February 2023, down 3% from February 2022. The city of White Plains also saw a 0.6% decrease from the previous year.
Salamanca (Cattaraugus) sales taxes totaled $64,909 in February 2023, up 14.1% from February 2022. Despite being the lowest collection in the state, this is a significant increase for Salamanca. The city operates on a fiscal year beginning April 1. Across Western New York, the seven taxing bodies reported $103.46 million in receipts in February 2023, up 18.9% from February 2022. Erie County had the largest percentage increase, with a 20.7% jump from February 2022.
How Sale Taxes Affect Your Household Economy and Budget
Sales taxes in the United States can have a significant impact on household economies. As tax rates increase, consumers may feel the weight of the increase in their wallets. In some cases, households may be forced to cut back on essential purchases, such as groceries or clothing, in order to afford the higher prices. Additionally, the burden of sales taxes falls disproportionately on low-income households, who may already be struggling to make ends meet.
This can further exacerbate income inequality and perpetuate cycles of poverty. Despite efforts to provide exemptions or credits for certain items or income levels, sales taxes continue to be a regressive and burdensome aspect of the U.S. tax system, particularly for those who are already struggling to get by.As sales tax collections continue to experience significant growth in 2023, DiNapoli cautions that future collections may not grow at such a fast pace. The nation and state are facing significant economic challenges, and local governments should exercise caution and use responsible budgeting practices.
Sale Taxes Are Important for the Cities and Towns
So far in 2023, receipts in the region total $219.93 million, up 15.3% from January and February 2022. Statewide, receipts totaled $1.64 billion in February 2023, up 14.1% from February 2022. So far this year, receipts total $3.53 billion, up 11.4% from the opening of 2022. New York City’s collections totaled $718 million, an increase of 11.6%, or $74.5 million, over February 2022.
Monthly sales tax collections are from cash distributions made to counties and tax-imposing cities by the state Department of Taxation and Finance, and the amounts are based on estimates of what each municipality is due. In the third month of each calendar year quarter, these distributions are adjusted upward or downward, so that the quarter as a whole reflects reported sales by vendors. The first quarterly numbers for the year will be available in April.