Sullivan County ended 2025 with the steepest drop in local sales tax revenue of any county in New York, according to a report released this week by State Comptroller Thomas P. DiNapoli.

Local government sales tax collections statewide totaled $24.4 billion in 2025, an increase of 4.5 percent over the previous year. While most counties saw growth, Sullivan County’s collections fell 5.2 percent year over year, making it one of five counties statewide to record a decline in sales tax revenue.

In a statement accompanying the report, DiNapoli urged local governments to budget carefully amid economic uncertainty and potential policy changes that could affect future revenues. 

Marc Baez, president and CEO of the Sullivan County Partnership for Economic Development, said he was not discouraged by the report and emphasized the importance of maintaining consistent, long-term investment in projects rather than reacting to short-term fluctuations. He said many economic development efforts take time to show measurable returns and should be evaluated over longer cycles.

Baez also cautioned against comparing Sullivan County directly to other counties, noting that differences in infrastructure, development patterns, and  economic structure make one-to-one comparisons misleading.

“We’re not Orange County. We’re not Ulster County,” Baez said. “We’re different. We have a different structure, different infrastructure, and different economic drivers.”

Baez said part of the decline reflects the limits of relying heavily on construction-related activity to drive sales tax revenue. “You can’t run a construction-driven sales tax model forever,” he said. “At some point, it’s going to dip a little bit.”

He described the decline as part of a natural market cycle rather than a sign of broader economic trouble. “This is just the market,” Baez said, adding that periods of growth and slowdown are expected over time.

Baez pointed to recent retail development in the Town of Thompson, including the opening of a new Starbucks and additional retail options near the mall area, as examples of how consumer spending patterns could gradually shift. He said such businesses can act as anchors that encourage travelers and residents to stop and spend locally.

Looking ahead, Baez said several construction and development projects are currently in the pipeline and expected to move forward in the coming years. He said activity tied to those projects could support future economic activity, while emphasizing that year-to-year sales tax changes should be viewed in context.