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Kingston is seeing a positive shift in its sales tax revenues, according to City Comptroller John Tuey. As of Thursday (June 12), the city's sales tax revenues have improved to within 2.26% of last year's figures, marking a rebound from the 4% decline reported in May. This improvement offers a glimmer of hope for the city's financial outlook.
Earlier this year, Kingston faced a challenging start, with sales tax revenues experiencing significant fluctuations. In May, the city was about 4% behind the previous year's figures, raising concerns about potential tax increases to fill the budget gap. The city had planned for a $180,000 increase in sales tax revenue for the current year's budget.
Despite the recent improvement, there is still concern that if the revenues do not continue to rise, taxes may need to be increased next year. According to the Daily Freeman, the city is closely monitoring the situation to determine future financial strategies.
The rise in sales tax revenues can be attributed to various factors, including increased economic activity and inflation. However, as noted by Ulster County Comptroller March Gallagher, while higher sales tax revenues can indicate economic growth, they may also reflect inflationary pressures rather than increased economic activity.