The Tax Watch blog last week took a look at a joint report from National Association of Counties, National League of Cities and the United States Conference of Mayors that showed cities and counties across the country are losing millions of dollars in sales tax revenues as more consumers take advantage of tax-free online shopping.
The report (read it here) estimated that Westchester, Putnam and Rockland lost an estimated $124 million in sales tax revenue in 2011, 2012 and2013 ($91.4 in Westchester, $25 million in Rockland, $8 million in Putnam). A story on Tax Watch today discusses the issue with officials in the counties, whom say the lost revenue has led to cuts in services and puts local businesses at a disadvantage.
“That couple of bucks you’re saving from online shopping adds up to putting us in a very tough economic situation,” Putnam County Executive MaryEllen Odell told Tax Watch. “To be able to stop that Internet sales tax from leaving this county is very important for us so we can manage our unfunded mandates that are crushing us and to continue to provide the quality-of-life services.”
Read the full story here.