JOHNSTOWN — December sales tax receipts the city of Johnstown totaled $542,383, amounting to an overall spike in 2022 of 12.8%.
It was slightly lower than the city’s 11-month rate increase of 13.6%, according to the state Office of the Comptroller.
“I think a lot of business and industry is driving that sales tax up and I don’t know if you see it, but doesn’t it feel like a lot more people are out and about since COVID and restaurants are busier and stores are busier?” said Johnstown Mayor Amy Praught. “That means they’re traveling more so they’re using more gas, so I believe that’s the driver in our economy locally.”
“We hope the trend continues,” she added.
The mayor also inferred that the rising cost of goods and services probably factors into revenue gains.
On the other end, the city government — unable to bond for more than a year per a past administration auditing controversy — has dipped into general and COVID-19 federal relief funds in order to keep afloat price-inflated projects. This revenue helps, Praught maintained.
“Obviously the revenue from sales tax also helps you with the price increases that you’re experiencing because sales tax is part of what we generate to keep our city running,” the mayor said.
Some $4.5 million from the 8% tax was expected during the 2022 cycle. March was the highest gain, $562,955, a 40.8% increase.
Only in June did the locality slip, bringing in $495,915, $50,000 less than 2021. Cities and counties across the Mohawk Valley faced a collective 26.1% annual decrease that month.
“I mean, I can’t really give you an exact reason why residents haven’t spent that much,” city Treasurer Thomas Herr said.
Here are Johnstown’s overall gains throughout year, excluding months mentioned above:
- January: 17.9%
- February: 24.1%
- April: 16%
- May: 14.3%
- July: 3.3%
- August: 2.9%
- September: 24.2%
- October: 10.8%
- November: 10.1%
Across the state, receipts were up 13.7% between January and November. Fourth quarter data hasn’t yet been released by OSC.
Johnstown is one of only 18 cities outside of New York City to boast a municipal sales tax stream. In November, neighboring Gloversville experienced an 11-month 0.8% increase, Glens Falls 12.5%, and Saratoga Springs 16.3%.
Fulton County sales tax revenue is up 7.5% from 2021 as of November, and is expected to increase some $2 million this year. The county kept its 4% gas levies despite calls across the region to shave off four to eight cents at the pump.
Fearing revenue losses, the Warren County Board of Supervisors rejected a proposed cap and Montgomery County discussed the idea, but it never materialized. Meanwhile, Saratoga and Schenectady counties, which both enacted the measure, ended up receiving respective 11-month sales tax revenue gains of 14.6% and 4%.
For the Saratoga County Chamber of Commerce, sales tax receipts and revenue per available room (RevPAR) at hotels across the jurisdiction measure economic growth. Between January and June of last year, RevPAR was $4.97 above 2019 numbers.
“I do think the sales tax numbers and the historic rise in that in Saratoga County within the last two years is — sure, it’s partially inflation, but it’s more so that visitors, local businesses and local residents have been willing and capable of spending more,” said chamber president Todd Shimkus.
Tyler A. McNeil can be reached at 518-527-7659 or [email protected] Follow him on Twitter @TylerAMcNeil.
