Written by George Maragos Thursday, 20 March 2014 10:46
Sales tax revenue is the County’s biggest source of income, accounting for over 40 percent of total annual revenues. Sales tax is also a good barometer of the County’s economic activity and economic health. Therefore, it is gratifying that the final sales tax figures for 2013 show an increase of 6.3 percent to $1.13 billion over the prior year. This was on top of another healthy increase of 4.2 percent in 2012.
These sales tax growth figures would seem to imply that Nassau County has recovered well from the recession and Superstorm Sandy, and in fact it has, with unemployment now under five percent, well below the national and state averages.
Yet, some worrisome signs appeared towards the end of 2013. The sales tax revenue during the holiday shopping season declined an astounding 12.4 percent when compared to the same period in 2012. This local tapering off at year end is especially concerning because nationwide retail sales were up 0.2 percent and the national economy grew by 2.4 percent.
The question that arose was whether our local economy was slowing more than the national average or were there other factors at play? One factor accounting for the significant drop in sales tax receipts towards year-end may have been a shift in consumer shopping habits from brick-and-mortar stores to online, which reduced the amount of sales tax revenue. The latest U.S. Census Bureau statistics project online sales to have increased 12.5 percent for 2013 through the third quarter, tripling since 2004. Another factor for the drop-off in holiday sales tax receipts may also be due in part to flat income growth for consumers; income grew only .25 percent in November and not at all in December.
At first glance, the combination of flat income growth and the shift from brick-and-mortar stores to online appeared especially troubling to Nassau County as well as other municipalities which rely heavily on sales tax revenues and local consumer spending to generate jobs. However, a recent federal court decision requiring online vendors such as Amazon to collect and submit sales tax now appears to have provided a huge boost to sales tax revenues, up about 9.7 percent in the January-February period. These were sales that were not taxed previous to 2014. This trend is now anticipated to provide higher sales tax revenues in 2014 than the two-percent growth projected in the County’s 2014 budget.
The bad news is that the accelerating shift to online sales will mean potentially lower sales going forward for brick-and-mortar stores and fewer local jobs at retail stores. Additionally, the absence of income growth will further dampen sales and jobs, not only in retail, but all the sectors of our economy. Our local economy may have to adjust to the new realities, and policymakers should continue to strive to create good-paying jobs in other sectors, especially in the growing technology, bio-sciences and health care industries.
Saturday, 27 September 2014 00:00
This year you can expect to see the Freedom Schooner Amistad, Connecticut’s flagship, tied up on the Western Waterfront Pier at the Oyster Festival on Oct. 18 and 19. The ship is a Baltimore Clipper that is 129 feet in length and weighs 96 tons. Its home port is New Haven, Conn.
The tall ship visits ports worldwide, as an ambassador for friendship. It serves as a floating classroom, icon and monument to many souls that were broken or lost as the result of the transatlantic slave trade.
The original Amistad, which means friendship in Spanish, was made famous in 1839 when 53 African captives (men, women and children) transported from Havana revolted against their captors. The captives gained control of the ship under the leadership of Sengbe Pieh, later known as Joseph Cinque, who commanded the ship’s navigator to return them to Sierra Leone. Instead, the ship headed north, landing in Long Island, and was taken into custody by the United States Navy.
Friday, 26 September 2014 00:00
Diamond Fitness held its grand opening on Saturday, Sept. 6. Members of the Historic Oyster Bay-East Norwich Chamber of Commerce came out to meet Wendy Goldstein, her staff and her re-invented gym at 138 South St.
Goldstein said she was touched by the warmth of the people who came into the gym to welcome her, even before the official opening. “People came in to say hello, saying they had heard that the gym had changed hands. It warms my heart,” she said.
Goldstein attended a chamber meeting and is now a member. Nassau County Legislator Donald McKenzie helped Goldstein cut the red ribbon as chamber members Walter Imperatore and Michele Browner cheered the opening along with staff members and friends.
Thursday, 25 September 2014 00:00
Football season is here and the Oyster Bay-Bayville Generals held their opening day games on Sept. 14. Here are the results:
5 & 6 Peanuts:
The Peanuts opened the season vs. the Seaford Broncos and came out on the losing end of a hard fought game. The Lil Generals opened the game on offense and quarterback Rodney Hill, Jr. marched the offense down the field and completed the drive with a touchdown pass to Francesco Allocca. Yes, the Peanuts have a potent air attack with Hill Jr. going two for two for 26 yards. The defense played strong with Allocca leading the team in tackles with help on the defensive line from first-year players Dean Wolfe and Anthony Pelchuck.
Thursday, 18 September 2014 00:00
Former football coach and NFL player Bill Curry recently brought a wealth of experience, knowledge and history to a wide audience of student-athletes and coaches at Hofstra University for a lesson on diversity, tolerance and respect in high school athletics.
Director of the NYS PHSAA Sportsmanship Committee and Manhasset High School Athletic Director Jim Amen Jr. established the summit and invited Curry as keynote speaker.
Amen Jr. and Section VIII Executive Director Nina Van Erk introduced Curry to a crowd representing more than 37 local high schools.