Local government sales tax collections dropped sharply by 31.8% in June compared to the same month in 2021, according to an analysis recently released by State Comptroller Thomas P. DiNapoli. Overall, collections totaled $2.132 billion, up $130 million from June of last year.

Sales tax collection in New York state totaled more than $5.5 billion in the second quarter of 2022 (April-June), an increase of 12.2% or nearly $604 million compared to the same quarter last year, according to the new report.

April and May collections grew by 15.7% and 16.7%, respectively, while June increased 6.5%, marking the first time since March 2021 that the overall monthly year-over-year growth dipped below double-digits.

In St. Lawrence County, sales tax revenue has dropped significantly, down $2.8 million compared to last June. Total tax revenue collected was $6 million, down from $8.8 million in June 2021. While that figure remains higher than previous years during the COVID pandemic, DiNapoli warned local governments that the trend bears watching.

“Local sales tax collections continue to show positive results, but the lower growth in June bears watching,” DiNapoli said. “The slowdown reflects, in part, the temporary reduction in local sales taxes on gasoline in 24 counties, along with a possible return to more typical growth rates after the dips and rebounds caused by the COVID pandemic.”

New York City’s collections totaled $959.4 million, an increase of 51.5% – or nearly $326 million – when compared to June of 2021. Nearly every county also experienced significant sales tax revenue declines in June due to recent high inflation. Broome County saw the largest decrease at 43.4%. Every county listed except for Albany and Schenectady Counties saw a decrease in sales tax when comparing June 2021 and June 2022. Among cities that impose their own general sales tax, the City of Oneida was the only to see positive growth, up 4.1% from June 2021.

Monthly sales tax distributions are based on estimates by the Department of Taxation and Finance. The distributions in the third month of each quarter are adjusted upward or downward to reflect actual vendor results for the quarter as a whole. The next quarterly numbers (for April-June) will be reported in July.