Inter-County Commerce Fuels Growth in New York
- Sales Tax News
- Dec 30, 2011 | Susan McLain
The Buffalo News reports that “Sales tax revenue has bounced back” with a 3.9 percent increase this year. Erie County hails this as “…a return to pre-recession sales tax growth,” while Niagara County saw an increase of “…7.6 percent, compared with the same period last year.”
Economist Gary D. Keith, M&T Bank, says there’s one thing fueling the growth, “There’s a one-word answer I can give you right now: Canadians. They have been helping our retail sector significantly throughout 2011.” However, Lawrence Southwick, Jr., associate professor emeritus at the University at Buffalo School of Management feels, “A part of it is prices increasing, and part of it is that we may be moving toward a more robust economy, although I’m skeptical there. We’re going to have to wait and see.”
The increases have also been attributed to the increase in gasoline prices, higher prices for other goods and a pent-up demand for vehicles. Not everyone is skeptical, though. Michael J. Poczkalski, owner of Room, a furniture store on Hertel Avenue, says “I think consumer confidence is stronger than people portray it to be. It was a very, very good year for us.”
Regardless of what’s ahead, this year has enabled Eric County to gain a “…higher-than-expected sales tax revenue [that] has helped put the county on track to end the year with a budget surplus.”
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