OSC Releases First-Quarter Sales Tax Report

Yesterday, the Office of the State Comptroller released its report on sales tax revenue for localities for the first quarter of 2026. On its face, the numbers look promising! 

"Local Sales Tax Collections Totaled $6.1 Billion in the First Quarter of 2026, Up 5.1 Percent Over Prior Year"

We wanted to share our perspective: 

Sales tax is often cited as a financial boon for local governments, but the reality is more nuanced.

Towns only receive sales tax revenue if their county elects to share it. And even when that sharing occurs, sales tax accounts for just 8 percent of town revenues on average. The overwhelming majority of town budgets are funded by real property taxes.

This matters enormously in conversations around Tier 6 pension reform and the capacity of local governments to absorb increased costs. Before assuming municipalities have the fiscal flexibility to shoulder new financial obligations, we must understand how local government revenues are actually structured.

The wealth is not spread equally, and sound policy decisions require we acknowledge that fact. 

Here, find some research on revenue trends and statistics in New York State.

Local Government Revenue Article | Revenue: City, Village, Town 2013 - 2023 Appendix

To view the NYS Comptroller’s report in its entirety: https://www.osc.ny.gov/files/local-government/publications/pdf/2026-sales-tax-first-quarter.pdf