Comptroller: NYC High Sales Tax Receipts Helps Entire State
Fueled by a post-pandemic bump in leisure and hospitality sector spending, sales tax receipts in New York City grew by over 18% during the latest tracking, helping lead to more revenue not only for the city but statewide coffers as well.
According to a new report from Comptroller Thomas DiNapoli, the increased sales tax receipts from the city are on track to exceed pre-pandemic levels.
“The decline in visitors and commuters at the onset of the COVID-19 pandemic resulted in a drop in sales tax collections two years in a row for the city,” DiNapoli said via a press release.
“The return of travelers and office workers helped drive New York City’s rebound in collections last year, and tourism-related sectors such as leisure and hospitality continue to recover from their pandemic lows," added DiNapoli.
The state-mandated shutdowns at the onset of the pandemic led to a huge decline in taxable sales, going from $180 billion to $142 billion, a 23% drop, the report states. The drastic decline in New York City was far and above the rest of New York State, which remained "stable."
The New York City leisure and hospitality industries were the most impacted by the pandemic suffering a 66% drop in receipts during the two years of sanctions.