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ALBANY — Sales tax collections in Schenectady County soared 24.1% in Schenectady County in January over the same period last year, with $11 million collected last month as opposed to $8.8 million last January.
Sales tax collections grew 9.2% statewide in January compared to January 2022, according to a new report from State Comptroller Thomas DiNapoli.
Sales tax collections in municipalities statewide totaled $1.89 billion in January, up $159 million compared to the same time last year.
Sales tax collections totaled $3.4 million in Montgomery County in January, up 6.7% from the $3.1 million collected in January 2022.
“An increase in sales tax is always encouraging news,” Robert Purtell, chairman of the Montgomery County Legislature, said on Monday.
In Fulton County, sales tax collections grew 9.8% in January, with the county amassing $2.3 million last month, up from the $2.1 million the county collected in the same timeframe last year.
Purtell noted that increased sales tax revenue should result in tax benefits for residents over the long term.
“As long as new expenditures don’t go higher than the increase in sales tax, then it should go to our bottom line of fund balance, which should eventually go back to the taxpayers,” he said.
Purtell attributed the increased sales tax revenue to several types of consumer spending categories, with inflation boosting the cost of goods.
“Fuel expenses have remained pretty flat over the past couple of months, but you have increases in food cost, lumber costs and vehicle costs,” he said. “That all adds to increased sales tax.”
In Saratoga County, sales tax collections rose 9.1% in January, with the county collecting $13.7 million last month, up from $12.6 million in January 2021.
DiNapoli cautioned that sales tax revenue growth could flatten as the year progresses.
“As we head into a new year, local sales tax growth remains quite strong,” he noted in a statement. “Consumer spending and a strong labor market have buoyed sales tax growth even as prices remain elevated. Local governments should budget cautiously as this growth may level off sooner than they expect.”
Schenectady County finished second in statewide growth in January, trailing only the 26% increase in Delaware County.
Onondaga County had the lowest growth at 0.6% in January over the same timeframe last year.
Statewide sales tax collections increased 12.7% in 2022 over 2021 year-over-year, with sales tax collections in the state totaling $22.1 billion in 2022, up $2.5 billion over the state’s 2021 total.
