Sales Tax Receipts Down by Millions

Another month—another dramatic sales tax decline in Putnam County.

Members of the Putnam Legislature’s Audit Committee heard from Commissioner of Finance William Carlin Tuesday evening and the news was all bad.

For the sixth consecutive month, county coffers have taken a hit in sales tax receipts.

For the period ending August 31, $3,574,768 was collected in sales tax, a $433,201 decline from the same period in 2008.

The decline comes in the wake of a $500,000 hit in July, a $917,000 decline in June, a $609,000 reduction in May, a $258,000 shortage in April, and a whopping $1.7 million decrease in March— which marked the first time in more than two decades that Putnam has experienced six consecutive monthly declines in sales tax revenue from the prior year. For the first eight months of 2009, the county is down by $4.5 million in sales tax receipts over the same period in 2008.

Commissioner Carlin attributed the decrease to the economy. “Sales tax revenues are down across the state, with 50 of the 57 counties reporting a dramatic decline from the previous year,” he reported.

Legislator Tony Hay of Southeast, a member of the Audit Committee who also chairs the full legislature, called the numbers “alarming. This is worse than I ever anticipated. We held our own last year but so far in 2009, the bottom has fallen out and who knows if we have hit rock bottom.”

Legislator Mary Conklin of Patterson, chairwoman of the Audit Committee, urged residents to “shop Putnam whenever you can. The situation is universal. The economy has taken a hit and people are saving their money and are only purchasing items that are absolutely needed.”

Legislator Richard Othmer of Kent, the third member of the Audit Committee, issued a plea to every Planning Board, Zoning Board, Architectural Review Board and Building Inspector found within the county: “Stop being hostile towards developers. Members of the various agencies must work together to encourage applicants to move projects along and not be obstructionists. Developers own property and they have the right to build on their land. Until local town boards give developers a fair shake, Putnam will continue to stagnate. Stamping ‘No’ on an application without mediation and compromise is doing this county much harm. It has to stop!”

The one Democrat on the Legislature, Sam Oliverio of Putnam Valley, reacted to the grim news by telling the Courier: “This is reflective of the American economy. We are really in terrible economic straits. People are frightened. They are not spending money and are holding onto the income they have for fear of losing a job. You can’t blame them.”

Last year, Putnam collected $51 million in sales tax receipts, a dramatic $5.1 million increase from 2007.

The county has projected to collect $51.6 million in sales tax receipts by the end of 2009, but to date is nearly $22.5 million short.