NORWICH – A downward sales tax trend being felt across the nation has also found its way into local economy as the Town of Norwich reports a significant drop in revenue.
The Town of Norwich Board reviewed its 2009 second quarter sales tax revenue report and discovered about a 24 percent drop from a year ago.
However, in the first quarter they only suffered a slight decrease from 2008 of less than 1 percent from $99,435.16 a year ago, down to $98.753.19 in 2009.
The downward trend then returns in the 2008 fourth quarter, with $88,402.82 collected when compared with its 2007 fourth quarter counterpart of $130,768.48 – an overall reduction of around 32 percent.
Local sales tax revenues across New York State, including New York City, were down 8.9 percent, or $640 million, for the first seven months of 2009 compared with same period last year, according to an analysis released this week by State Comptroller Thomas P. DiNapoli.
“It’s not surprising that local sales tax revenues are down so significantly,” DiNapoli said. “Back-to-school shopping makes September a very important month for sales tax revenues. Local governments need to take a hard look at the September data. Just like the state, if local governments are not on track to meet their budgeted revenues for the year, they need to make adjustments in their spending now without placing a greater burden on local taxpayers.”