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.
Friday, 24 October 2014 00:00
Matt Bentz, of Forest Hills, was the winner of the Oyster Festival Raffle that took place as the event ended at 6 p.m. Sunday, Oct. 19. He had a choice between winning a 2015 Chrysler 200 three-year lease or $15,000 in cash. He chose the cash. He is the “Perfect Oyster Festival Raffle winner.”
Bentz is a computer systems administrator with Spa Creek Software, a company that writes software for other software developers, and has been to the festival numerous times over the years; in fact, next year he is hoping to sail here on his 24 ft. sailboat. He got it “reasonably” from a friend who was buying up.
Thursday, 23 October 2014 00:00
Richie Cannata may be best known for his song credits but his name will become a part of history this week. Cannata, a 28-year resident and business owner of Glen Cove, will be inducted into the Long Island Music Hall of Fame on Thursday, Oct. 23 at The Paramount in Huntington.
As a member of the Billy Joel Band, the saxophone player was propelled to fame in 1975 when he joined the band and played on songs including “New York State of Mind” and “Scenes from an Italian Restaurant.”
Thursday, 23 October 2014 09:08
The autumn varsity sports season is well on its way in Oyster Bay. Many young athletes have distinguished themselves. Several fine young athletes excelled right out of the gate and were chosen by the Oyster Bay Hight School coaches as Athletes of the Month for October 2014.
Cross Country Coach Kevin Cotter has athletes who consistently qualify for the states. Picking one to honor is a difficult task. Within this impressive group of talented athletes, one stands out: junior Alex Tosi, who recently broke the 17 minute barrier for a 5K course at Bethpage State park with a time of 16:52. This feat has not been accomplished since 2008.
Thursday, 16 October 2014 08:58
5- and 6-year-old Peanuts
The Little Generals (Peanuts) stepped out into the cold Sunday morning ready to give the home crowd a show as they battled the Bellmore Braves, and that’s just what they did as the Generals beat the Braves 14-7. The teams battled to a first half tie as the Generals’ touchdown came on a 26-yard run by Kody Gehnrich, thanks to great blocks by John (Jack) Grace and Jack Symanski.
In the second half, where the Generals are usually at their best, the defense shut out the Braves as Rodney Hill, Jr. and Brandon Babel stepped in on the defense line to create a great push to allow Francesco Allocca to make eight tackles. The offense got a big boost with Allocca being allowed to play RB after playing QB the past two games, and boy did he respond behind great lead blocking from Luca Granito. Allocca carried the ball nine times for 60 yards and a TD coming on the last play of the game.