New Yorkers Spending: Sales Tax Collections Increase

Higher sales taxes this year are not deterring shoppers in New York City. State comptroller Tom DiNapoli says sales tax collections increased 20.6 percent in the first nine months of the year compared to the same time a year ago. During the first nine months of 2009, sales tax collections fell 11.4 percent.

“An increase in sales tax collections is a good sign for the economy,” DiNapoli said in a press release annoucing the figures collected by his office. “New Yorkers are getting out and spending money."

Almost half of the increase came from an increase in the sales tax rate and the repeal of exemptions on clothing and footwear priced over $110.

Statewide, sales tax collections increased 10.5 percent in the first three quarters of this year. That statewide figure was helped, in large part, by the surge in tax collections in New York City.

While every region of the state took in more sales taxes, the amounts varied. For example, western New York had a 0.7 percent increase.