Local Sales Tax Collections Decline by 10 Percent in 2020, With Major Shifts in Consumer Spending

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New York State local sales tax collections declined by 10 percent (or $1.8 billion) in 2020 compared to 2019, due to the economic impact of the COVID-19 global pandemic. New York City, which was hit earliest and hardest by the pandemic, saw its collections decline by 18.7 percent in 2020, while counties outside the City saw an average drop of only -0.9 percent. The pandemic also caused a dramatic shift in consumer spending during the spring and summer months. One change was a significant increase in online purchases. Meanwhile, the state’s recent ability to tax sales made by smaller out-of-state sellers to New York residents – referred to as “marketplace and nexus vendors” – bolstered local sales tax collections. | Regional Table [.xlsx]