Sales tax revenue up for county
Officials are crediting new construction with helping Fulton County increase quarterly sales tax revenues by more than $400,000 over the same time last year – nearly a 10 percent increase.
More than $5 million was collected between July and September, a $414,622 increase over a year ago, according to the county treasurer’s office.
Blodgett said the new Walmart Supercenter that opened in Gloversville this summer likely represents some of the increase, but he noted sales tax revenue was also up in the town of Johnstown, where a Walmart store closed.
“It may be people are loosening up a bit and car-buying and additional spending in general,” he said.
A significant portion of the increased revenue was collected in Gloversville, which received $638,871 for the quarter, a $73,509 increase over the same period in 2012.
“Any of the building materials purchased for the Walmart would probably hit the third-quarter figures … the finishing touches of building materials and the sales at the store are probably a large portion of it,” Mayor Dayton King said.
The Walmart Supercenter is projected to bring the city $250,000 in sales tax revenue this year, Gloversville Finance Commissioner Bruce Van Genderen said. King and Van Genderen said they expect an additional $600,000 to $800,000 in revenue over a full fiscal year.
King said with Christmas shopping around the corner, the next quarter will see an even bigger jump for the city, putting it on target for its 2013 projections.
“I think we are on pace to hit that goal for sure,” King said.
Officials said the new developments along Route 30A will also bring a continued increase in future sales tax revenue. For instance, King said sales tax revenue from a new Burger King the city recently approved could amount to $20,000 to $25,000 per year.
Johnstown had an even larger sales tax revenue increase, from $792,528 in 2012 to $928,767 this year – a difference of $136,239.
Mayor Sarah Slingerland said the increase could be attributed to the continuing purchase of construction materials for Fage USA’s expansion and a A T.J. Maxx store under construction.
“We have a lot of growth occurring right now and certainly those materials would increase it a bit,” she said. “We also have seven or eight houses in different phases of construction, so I’m not certain which it is coming from, but I’m certainly glad it’s up.”
Every Fulton County municipality gained in sales tax revenue over the same quarter last year, including the town of Johnstown, whose $19,751 quarterly increase includes the loss of Walmart.
“I thought we would be down, but we were up almost $20,000, which is a very pleasant surprise,” town Supervisor Nancy MacVean said.
She said the construction materials for the new CVS store than opened near Route 30A may have played a factor in the increase. But she said the town is looking forward to bringing in more businesses to make up the difference in what now is lost from Walmart.
Blodgett said the third quarter typically has the biggest quarterly increase on a yearly basis, but he is expecting another 3 to 4 percent increase for the fourth quarter for both the county and various municipalities.
He said current sales tax revenue is above projections, and if the revenue remains steady, it will mean an increase of $500,000 to $700,000 across the county and municipalities.
“Everything has increased from the previous year,” Blodgett noted.
Levi Pascher can be reached at firstname.lastname@example.org.