Yates, Schuyler see sales tax revenues up

YATES, SCHUYLER COUNTIES--Despite state trends indicating a decrease in sales tax revenues for most counties, both Yates and Schuyler Counties had small increases in 2015. According to the New York State Association of Counties (NYSAC), for all of 2015 compared to 2014, 30 counties experienced negative growth in sales tax receipts, with the average change per county down 0.3 percent. However, Yates County saw a 0.1 percent growth during this time, while Schuyler County saw a 1.5 percent increase.
"We are fortunate to have a healthy improving economy in Yates County," Yates County Chairman Tim Dennis said. "We have estimated that the reduction in the price of motor fuels and the corresponding decrease in sales tax revenue had an impact of over $300,000. In light of that we still had a very modest increase."
Dennis added the county has budgeted for a modest increase for fiscal year 2016. He said the increase in hotel and motel rooms with the corresponding increase in ancillary services has contributed to the increase. Dennis anticipates the opening of the Keuka lakefront hotel will contribute more overnight stays and a corresponding increase in sales tax.
"If it weren't for lower fuel costs, Schuyler's increase would have been much greater," Schuyler County Administrator Tim O'Hearn said. "Schuyler's increase was predominantly due to the Phish concert held at Watkins Glen International (WGI). My estimate is that that event alone generated almost $700,000 in sales tax revenue."
O'Hearn added this increase was offset by lower fuel prices and WGI being closed for repaving after the August race, lowering the county's net proceeds. Fortunately, O'Hearn noted their tourism economy remains strong, and with WGI reopening in April with a newly resurfaced track, he estimates this will draw additional activity. He said the county is hopeful another music event will be held at WGI this year.
"While it's great to have cheap gas prices, motor fuels account for 12 to 14 percent of our overall sales tax collections," O'Hearn said. "Gas prices are projected to drop further this year, which will hopefully generate more travel and tourism dollars, but current prices reflect a drop of $600,000 in revenue compared with 2014."
Statewide in 2015, 12 counties collected less in sales tax revenue than they did in 2013. For 11 other counties, while not negative, they averaged less than 1 percent growth per year in sales tax receipts between 2013 and 2015.
Recently, the New York State Tax Department released fourth quarter 2015 sales tax data showing continued retail stagnation in most counties across the state. In the fourth quarter of 2015, 31 counties experienced negative growth in sales tax receipts when compared to the same time period in 2014. New York State also saw their share of sales tax receipts decline by 2.3 percent in the fourth quarter of 2015 compared to 2014.
"This is most troubling because the fourth quarter includes holiday sales, which traditionally boost sales tax revenues across the board," said NYSAC President William Cherry.
According to NYSAC's analysis, it is not clear whether these lower receipts are related to a lackluster economic growth, lower motor fuel and energy prices, minimal wage growth, household deleveraging (debt reduction versus spending) or some combination of factors.