ALBANY, N.Y. (AP) - New York State Comptroller Thomas DiNapoli says sales tax collections in the state dropped by 10% in 2020 compared to 2019.
That’s more than in the 2009 recession, when collections dropped 6%. Sales tax revenue dropped most sharply in the second quarter as Gov. Andrew Cuomo closed non-essential businesses statewide during the coronavirus pandemic.
“Local governments depend heavily on sales taxes as a major source of revenue, but as New Yorkers stayed home and bought less in their communities during the pandemic it created significant shortfalls. New York’s localities need federal aid to help get through this crisis," said New York Comptroller Thomas DiNapoli.
Collections plummeted 27.1% from April to June compared to the previous year.
Drops in sales tax collection in New York City fueled much of the state’s losses. The city saw a 35% drop from April to June, then a roughly 20% dip for the rest of the year.