SULLIVAN COunty  — Sullivan County’s local sales tax collections fell 2.9% in the first half of 2025, bucking a statewide trend of growth, according to a July 30 report from New York State Comptroller Thomas P. DiNapoli. While overall collections across New York increased 3.7%—totaling $11.9 billion from January through June—Sullivan was one of only eight counties to see a year-over-year decline.

The Comptroller’s report attributed the statewide gains to factors like New York City’s continued economic recovery, strong regional growth in places like the Southern Tier, and a rebound in in-person consumer activity. But the reasons for Sullivan’s dip are more localized, Treasurer Nancy Buck told the Sullivan County Democrat.

Buck said the county’s pandemic-era gains from online shopping have receded as residents return to brick-and-mortar stores—often outside county lines. “When people were shopping online during COVID, the point-of-delivery meant that tax revenue stayed here,” she explained. “Now they’re going to Middletown or other areas with more retail, and those sales tax dollars go to those counties.”

According to Buck, Sullivan collected $39 million in local sales tax through the first half of this year, down from $41 million in the same period of 2024—a difference of $2.4 million. While some sectors saw modest growth, others posted notable declines.

A county sales report comparing the 12 months ending February 28, 2025, to the previous year shows the largest drop came from gas stations, down 9% ($13.5 million). Building material and supplies dealers—the county’s single largest sales tax category—also fell 3.3% ($11.6 million). Hardware wholesalers, clothing retailers, and wired telecommunications also posted significant declines.

Still, some sectors grew. Electric power generation and distribution rose 18.6% ($7.7 million), while traveler accommodations and grocery sales were up 4.8% and 2.5%, respectively.

Buck said that despite the recent drop, building materials remain a major driver of county revenue, boosted by both local construction and higher national prices. “We’ve got lots of construction happening here, and the cost of materials has skyrocketed,” she said.

Looking ahead, Buck urged caution. The county budgeted $80 million in sales tax revenue for 2025, the same target as last year, and she does not expect to exceed it. “We have to be careful during budget season,” she said. “I’ve been telling legislators for two years that I thought we’d see a slowdown, and we’re there now. I hope we hit our target, but there will be no overage.”