New York State’s local sales tax collections increased by 1.6% in 2024, totaling $23.4 billion, according to the annual report from the New York State Comptroller’s Office. This growth, amounting to an additional $376 million in revenue compared to the prior year, marked the slowest increase since the pandemic-induced decline in 2020. Local governments are now facing regional disparities in sales tax performance, including in the Finger Lakes area.
Sales tax collections in the Finger Lakes region experienced slight fluctuations, with some counties registering modest gains while others saw declines. Wayne County reported a 1.5% increase in collections, while Yates County experienced a 3.0% decline. Ontario County recorded a marginal 0.5% rise, and Seneca County’s collections decreased by 0.6%. Despite these mixed results, several counties benefited from specific factors such as economic recovery and targeted technical adjustments.
Statewide, the economic landscape played a key role in shaping sales tax performance. Inflation eased to 2.9% in 2024, down from 4.1% the previous year and significantly below the 8% seen in 2022. However, inflation and changes in personal consumption patterns continued to influence spending on taxable goods and services. The state’s job market also saw improvement, with employment levels growing by 1.5%.
Regional differences were stark. New York City’s sales tax collections grew by 2.8%, far outpacing the 0.6% growth in counties across the rest of the state. The city’s recovery was bolstered by a rebound in tourism, including robust Broadway attendance. By contrast, counties in rural and suburban areas, including parts of the Finger Lakes, faced more uneven growth rates.
Sales tax collections are critical for funding local government services. However, the report noted that technical adjustments—such as correcting for late filings or prior distribution errors—continue to affect year-over-year growth comparisons for many municipalities. In some smaller counties, even a few large sales transactions can skew annual figures.
Local officials are encouraged to prioritize long-term financial planning by focusing on recent growth trends rather than the volatility seen during the pandemic. For the Finger Lakes region, sustained investment in local economic development and strategic adjustments in tax administration may help stabilize future collections.
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