What Happened? Sales Tax Receipts Take a Dive

Last week, following three consecutive months of positive sales tax reports, Putnam lawmakers heard some discouraging news from Commissioner of Finance William Carlin concerning monthly sales tax.

Revenue declined in June by nearly $275,000 from the same period in 2009, marking the first time since March that county sales tax dollars failed to best the previous year.

Except for last December, when county sales tax rose by $40,000 from the previous year, sales tax dollars continued a downward spiral, declining steadily for 12 straight months by failing to match the previous year.

Legislature Chairman Vincent Tamagna said while “consumer confidence is returning, people are still feeling the pain. A little spending here and there is good. It indicates that the economy is coming around the bend. We are still not fully recovered from the economic downturn.”

Putnam’s total sales tax revenues for 2009 totaled $45,902,000—down from the $51,677,872 collected in 2008. The 2009 amount collected was even lower than the $45,988,000 garnered in 2007 by local businesses. This year the county has projected collecting $41.3 million in sales tax receipts.

While sales tax receipts are flat, Putnam Off-Track Betting (OTB) revenues continue to take a nosedive. The county’s OTB account is down by more than $50,500 for the year as a result of slow business at Putnam’s two Off Track Betting parlors in Mahopac and Southeast. Legislator Tony Hay summed it up best: “The ponies are running alright, but barely!”