Ulster County Sales Tax Revenues 2022

ULSTER COUNTY OFFICE OF THE COMPTROLLER
2022 Ulster County Sales Tax Revenues

comptroller.ulstercountyny.gov
Released April 2023
Sales Tax Revenue Growth
Sales Tax Collections totaled $165.4 million in
2022, a 7% increase in actual collections compared
to 2021.
According to a recent report by the Office of the

State Comptroller (“OSC”), local sales tax
collections statewide grew by 12.7% last year, in
large part due to New York City growth.
Sales tax growth for 2022 in New York City was

20.6%, which exceeded that of the counties and
cities throughout the rest of the State with 6.5%
average growth. This comes following a year of
lagging revenues for the City in 2021, when
counties and other local governments experienced
unprecedented growth, and Ulster County was at a
1
22% increase in year over year collections.
Budgeted Sales Tax Revenues

Ulster County sales tax revenues collected exceeded budgeted figures by $22.4 million in 2022, 16% of
the total budgeted revenue for the year. Historically, revenues collected generally exceed budgeted
revenues. In 2020, due to the pandemic, actual collections fell short of budgeted revenues by just over
$1 million, however, unprecedented collections in 2021 and 2022 produced revenues far above
expected values. Sales Tax Revenues generally represent between 31% - 44% 2 of total County
revenues and are a vital source of income used to support County operations. The 2023 Adopted
Operating budget includes anticipated sales tax revenues of $167 million, or just under 1% growth over
2022 actual collections.
Sales Tax by Industry
The NYS Department of Taxation and Finance provides sales tax revenues 3 by Industry sector for
further analysis on the changes affecting specific industries.
1
As of the date of this report, sales tax industry data was available for the first three quarters of the
2022/2023 sales tax year. Based on the information reported by OSC, automobile dealers, which are
the largest single source of sales tax revenue in Ulster County, saw a 1% decline when compared to
the prior year period. However, restaurants saw an 8% increase, and electronic shopping was up 5%
year over year. Gasoline stations, saw an 11% decline over the same period, and building materials
declined 1% as increased costs caused by supply chain issues began to settle. Traveler
accommodation saw a significant increase in revenues, 17% when compared to the prior year. This is
likely due to both an increase in the volume of Airbnb and other short-term rental providers in the
County, as well as increased collections realized through improved tax compliance. And finally, Electric
Power Generation saw the single largest increase amongst the top ten industries reporting a 33%
increase in revenues when compared to the prior year.
Sales Tax Reconciliations
The sales tax distribution process utilized by the state is heavily reliant on historical data to determine
cash payments to counties and New York City each month. As we have seen during the COVID period
the distribution process has been very volatile because the historical data model does not capture the
unique and transient variables involved during the COVID period, such as the impact of public health
lockdowns and rapid changes in consumer behavior.
During the first two years of COVID the reconciliations overestimated payments to New York City and
the quarterly reconciliations brought large inflows of sales tax redistributions to the 57 counties. Now
that New York City’s economy is approaching pre-COVID sales tax activity levels in many of its key
sectors the quarterly reconciliations are reversing. As they do, counties seeing double digit returns are
seeing adjustments that bring total growth to single digit increases, or in some counties zero growth.
Sales Tax Diversions
Beginning in 2022, Sales Tax Diversions are no longer being withheld from County sales tax revenues.
Distressed Provider Assistance
As part of the 2020-21 Enacted State Budget, OSC was required to withhold certain county and
New York City sales tax revenues from the gross amounts collected and place those funds in a
Distressed Provider Assistance Account to support financially distressed hospitals and nursing
homes throughout the State. Withholding of these revenues began in January 2021 and continued
throughout 2021 in April, July and October, with the last withholding being in January 2022. Sales
tax distributions were affected in February, May, August, November in 2021 and February in 2022.
The SFY 2022-23 Enacted Budget did not continue the Distressed Provider Assistance
program for counties outside New York City.
Aim Related Payments
The 2022-23 Enacted State Budget eliminated AIM-Related payments and the withholdings from
county sales tax collections used to fund them.
The Aid and Incentives for Municipalities (AIM) program provides state aid to all of New York’s
cities (other than New York City), towns and villages. Beginning in July 2022, all cities (other than
New York City) and 1,465 towns and villages will receive AIM payments from the State, pursuant
to Chapter 55 of the Laws of 2022. All towns and villages that previously received AIM-Related
payments will now receive AIM payments, in the same amounts, beginning in September 2022
and each September thereafter. Cities, towns and villages that previously received AIM payments
will continue to receive these payments in the same amount and month.4
[1] https://www.osc.state.ny.us/files/local-government/publications/pdf/2022-annual-sales-taxes.pdf
[2] These percentages represent sales tax revenue as a percent of the total budget for 2014 to 2023
[3] Taxable Sales and Purchases Quarterly Data beginning March 2013 https://data.ny.gov/Government-Finance/Taxable-Sales-And-Purchases-Quarterly-
Data-Beginni/ny73-2j3u/data
[4] https://www.osc.state.ny.us/local-government/data/aid-and-incentives-municipalities-aim-and-aim-related-payments
2

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ULSTER COUNTY OFFICE OF THE COMPTROLLER

2022 Ulster County Sales Tax Revenues

According to a recent report by the Office of the

Sales tax growth for 2022 in New York City was

Budgeted Sales Tax Revenues

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