Slow sales tax revenue growth for New York counties is a credit negative for them, Moody's Investors Service said.
Excluding New York City and four counties that increased tax rates, sales tax revenues were up a median 1.7% statewide in the first half. If all the sales tax revenues outside of the Big Apple and the four counties that raised rates are pooled, sales tax revenues were down 0.04%.
By comparison the United States Bureau of Labor Statistics said the U.S. city average consumer price index was up 2.1% in June 2014 from June 2013.
Nassau County had the biggest sales tax revenue decline at an 8.3% drop compared to the first half of 2013. Spending in early 2013 surged in the county as part of the rebuilding that followed Superstorm Sally.
"The county's budget included a 2% increase in sales tax collections, but the 8.3% decline will make achieving that target difficult," said Moody's analyst Valentina Gomez and vice president Nick Samuels.
More than half of New York's counties had sales tax revenues that either went down or showed minimal growth.
New York City enjoyed a 4.8% growth in sales tax revenues in the first half of 2014. Private sector employment has grown 7.4% compared to the pre-recession peak, the analysts said. Also tourism is setting records. The 2014 visitor total of 54.3 million was up 3% from 2013 and 44% from 2003, according to New York City's marketing organization.
Rockland County had 6.4% sales tax revenue growth in the first half of this year compared to the first half of 2013.
