While sales tax revenues can be an indicator of increased economic activity, during this high inflationary period, sales tax revenue numbers grow but may not indicate more economic activity.
“Policy makers should be aware of how inflation impacts sales tax revenues and remain vigilant in tracking the economy for a potential downturn that could impact this vital revenue source,” said Ulster County Comptroller March Gallagher. “If sales tax revenues decline, Ulster County will have to plug that gap with fund balance, real property tax increases, or cuts. The Comptroller’s Office provides this reporting to assist policy makers, business leaders and the public in understanding the financial position of Ulster County and potential changes that could impact the County in the future.”
