"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Wednesday, October 29, 2008

Counties Cashing In On Gasoline

Sales tax collections for the majority of counties across the state were up considerably in the 3rd quarter due to the increase in the price of gasoline. Jefferson County's sales tax for the same period was flat as they do not collect sales tax on gasoline priced above $2.00 a gallon.

Here are some highlights from Press Connects
"Despite the economic downturn, counties in New York averaged a 3.5 percent increase in sales tax revenue for the third quarter of the year, fueled in part by higher gas prices last summer."
"The amount counties collect in sales tax revenue is vital for them to pay for services and programs. Since 1999, taxes collected on sales of goods and services have surpassed the property tax as the largest revenue source for counties."
"State Comptroller Thomas DiNapoli earlier this year warned counties that a downturn in sales-tax revenue is likely, and counties said they are preparing their budgets now with lower sales-tax growth projections."
This is not the only source of revenue that is jeopardized by the current economic conditions. state and federal revenues are going to take a hit, not only in 2009, but likely through 2012. Local governments, such as the County and Towns, who are preparing their budgets, would be wise to plan now for what the future might hold for them. 


Anonymous said...

I think Jefferson County's sales tax revenue being flat had less to do with not charging sales tax over $2.00 a gallon than it did people buying less gas when it was $4.00 a gallon!

Making the cost of gas less onerous by not charging that taz allows folks to buy more, IMO.

Anonymous said...

Cheers to Jefferson County!

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