by Michael Wooten
Dec 7, 2011
BUFFALO, N.Y. — Erie and Niagara County governments are getting a much-needed financial boost thanks to stronger-than-expected sales tax revenue, in part due to Canadian shoppers.
Erie County Executive-Elect Mark Poloncarz, a Democrat, said sales tax revenue is about 4.25 percent higher than last year, and more than the 3% that was budgeted. Do the math, and it means the county will get about $15 million more than anticipated.
“Every percentage increase that we see in sales tax is a significant bonus for the community,” Poloncarz said.
While its unknown exactly how much of that increase is attributed to Canadian shoppers, there’s plenty of anecdotal evidence that more and more people are crossing the border and spending lots of cash at WNY retailers.
“Last year wasn’t a bad season for the malls in Western New York,” Poloncarz said. “But you can see the difference between this year and last year. You don’t even have to go and spend a penny. You just need to drive by them and you’ll see you can’t find a parking spot anymore, and the vast majority of the plates for the cars are Ontario plates.”
Niagara County is also benefiting, thanks to the Fashion Outlets and the nearby shopping plazas. The county treasurer said Niagara County sales tax revenue is up about 8 percent over last year, and that will mean about $3.5 million more for the county.
“That’s a phenomenal jump for our county,” Treasurer Kyle Andrews said.
With strong Black Friday sales and a busy holiday shopping season shaping up, it’s possible sales tax revenues could increase even more as we wrap up 2011.
Leaders in both counties said it’s nice to have the extra sales tax revenue to fill other gaps and budgetary shortfalls. In the past, that revenue has helped pay for higher-than-expected gas prices, for instance.
“You still want to budget conservatively,” Poloncarz said. “But every extra penny you can get in sales tax is gonna help pay for these other programs that the public wants.”
http://www.wgrz.com/news/article/145221/37/Big-Sales-Tax-Revenue-Thanks-to-Canadian-Shoppers