Revenue from Schoharie County’s sales tax is inching up to previous levels.
But increasing sales tax revenue, which comes from customers buying local goods, doesn’t mean the county is experiencing an economic boom, according to county Treasurer Bill Cherry.
Sales tax receipts for the first half of 2017 are about $300,000 more, or two percent higher, than the same period last year, Mr. Cherry said Monday.
Schoharie County’s 2017 budget pegged sales tax revenue for the year at $14.2 million, which is an educated estimate.
“I think it’s likely, by the end of the year, to be about $15 million,” Mr. Cherry said.
That’s good news for taxpayers. Combined, sales tax and property taxes comprise the largest share of county revenue in the budget. Theoretically, more sales tax revenue keeps property taxes from rising sharply.
Rising sales tax revenue sometimes indicates an improving economy because residents are able to spend more.
Mr. Cherry doesn’t believe this is the case. There are no new jobs to prompt the economy; on the other hand, the county isn’t losing jobs, either, he said.
“I think the increase just shows the rate of inflation,” Mr. Cherry said. “As prices rise a little, revenue from sales tax does, too.”
If sales tax revenue reaches $15 million this year, the total still doesn’t reach the $15.2 collected in 2011, the year of Irene and Lee.
The revenue in 2012 dipped to $14 million as the county recovered from the storms.
“I’m not jumping for joy [about the 2017 numbers],” Mr. Cherry said. “This is just bringing us back to where we were.”
The county shares five percent of sales tax revenue with towns and villages. The revenue is divided quarterly based on the assessed value in towns and villages.
Earlier this month, the Board of Supervisors approved sharing $193,727 among the 16 towns and six villages. The total reflects five percent of the sales tax revenue collected in the second quarter of 2017.