Sullivan County Faces Steepest Sales Tax Decline in NY for First Half of 2026

New York State Comptroller Thomas DiNapoli released the latest local sales tax collections report for the first half of 2026 last week. While New York state saw an overall increase of 6.8% in sales tax revenue, Sullivan County saw the steepest decline at 5.3% of any county in the state.

Sullivan County reported $33.58 million in sales tax collections from January to June 2026, compared to $35.37 million in collections from January to June 2025. Meanwhile, neighboring counties of Delaware, Ulster, and Orange counties all saw increases in their sales tax revenue for the first half of the year.

Sullivan County Manager Joshua Potosek pointed to a significant decline in construction and building revenue.

“Pre-pandemic and through the pandemic, we saw a real huge boom in construction. Anytime anyone’s going to a lumberyard, building a house, renovating a house, we get sales tax on all those sales… that’s somewhat declined a little bit,” said Potosek.

While the latest sales tax numbers pose challenges about the future of Sullivan County, Potosek says it’s far better than previous projections as recent summer spending boosted the county’s revenue.

“The 5.3 [percent decline] – as bad as that is – we were down 17, 16, 14 percent through May and June. We really saw a really beneficial increase in what we had collected year to year,” said Potosek.

READ: Sullivan County Sees Signs of Improvement in Sales Tax Revenue, But Budget Challenges Remain

Potosek says declining construction revenue coupled with the increasing cost of living still leaves a difficult revenue picture for the county moving forward.

“Whether it’s rent or putting gas in your car or [your] electric bill, I think people are – certainly at the middle to lower end [income] – stretched a little thin in terms of income trying to meet expenses,” said Potosek.

Sullivan County legislators approved a $305.7 million 2026 budget last December that raised property taxes by two percent and relied on ambitious revenue projections. The county also faced a $5 million sales tax shortfall last year, with construction revenue accounting for the largest sales tax dip.

Potosek anticipates he’ll propose a tentative 2027 budget to county legislators in late October. Sullivan County legislators have until December 20 to submit its budget to New York state.

Image: Close-up on a woman shopping at a convenience store and checking her receipt while exiting (Photo Credit: New York Office of State Comptroller)