New York's Nassau County saw an $8.1 million increase in sales tax revenue for the first half of the year and is on pace to exceed budget projections, according to Comptroller George Maragos.
The county's sales tax receipts jumped 1.7% compared to the first six months of 2015 and are projected to be $4.7 million more than revenue budgeted for, according to a report released Tuesday by Maragos. The large Long Island municipality projected a 1.26% growth in sales tax collections, but Maragos emphasized that the first year-to-date performance is still below historic averages.
"Although we are pleased with the modest 1.7% increase in sales tax revenues for the first six months of 2016, we are not seeing the historic average growth rate of 3%," said Maragos in a statement. "Consumers' accelerating shift to online shopping has dampened the historically robust growth in sales tax revenues."
Nassau ended the 2015 fiscal year with a $28 million surplus on a Generally Accepted Accounting Principles (GAAP) basis that was achieved primarily through $141.3 million in borrowing, according to a comprehensive financial report released by Maragos Wednesday. He emphasized however that when removing financing sources excluded by the Nassau Interim Finance Authority, the county ended with a negative $125.3 million deficit. When factoring in Nassau's non-GAAP surplus of $57.1 million, the county's fund balance rose by $42.1 million to $163.1 million, Maragos said.
"The County's 2015 financial results are mixed," said Maragos. "Although the financial results demonstrate a significant surplus, it was achieved primarily through borrowing."
Nassau County had a population of around 1.3 million in the 2010 Census and is rated A2 by Moody's Investors Service.
