WPCNR Quill & Eyeshade. By John F. Bailey. November 3, 2005: WPCNR has learned through New York State Legislature sources, that White Plains collected $10,367,333 in sales tax receipts in the first quarter of the 2005-2006 fiscal year, July through September. This figure is up from the $10,117,695 White Plains collected from July through September of 2004. The increase year-to-year is a 2.5% increase.

The critical October, November, December period in which White Plains collected $10,760,486 in sales tax last year is now just about in the middle. At this time, should White Plains continue at the 2.5% growth rate, White Plains would collect $1,023,244 additional sales tax over 2005-06 for a grand total of $41,953,025 in 2005-06.

This figure could be augmented by the planned opening of Wal-Mart in January, provided Wal-Mart does not cannibalize the other department stores in town: Sears, Macy’s, and Target, splitting the shopping clientele.

Pace of Growth.

Last year, with City Center fully occupied, White Plains enjoyed a 15.6% lift in sales tax in the first quarter, $10,117,695 in 2004-2005, compared to sales tax receipts of $8,752,484 in 2003-2004.

In the second quarter of 2004-05, the critical “holiday season,” White Plains collected $10,760,486,  a $746,812, 7.5%  increase over 2003-2004, when City Center was not fully occupied with Target the only store operating.

In the last two quarters of 2004-05, White Plains generated $10,419,390 in the January, February, March quarter, and in the final quarter, April-May-June the city received $9,240,939. In the first half of the 04-05 year, White Plains received $20,878181 in sales tax. White Plains is averaging $10.3 Million in sales tax per quarter.

Gasoline Sales Tax Impact?

Another factor that had to have contributed to the first quarter sales increase is the state and local gasoline sales tax which is collected at the rate of 7.8% on the retail price per gallon according to White Plains Sunoco (The Official Service Station of The CitizeNetReporter).

Retail gasoline prices soared to $3.50 per gallon in White Plains in September, about 27 cents a gallon of which was state and local sales tax, the first week in September and prices have now descended to the $2.70 per gallon level, which works out to 21 cents a gallon tax, of which White Plains gets a piece.

On the Westchestergov.com website, www.westchestergov.com/consumer/BREAKD1.gif, the tax portion of a gallon of gas priced at $1.99 works out this way:

Crude Oil Production Costs, 72 cents,

Bulk Terminal Costs, 34 cents

Station Owner Markup Costs, 20 cents,

New York State Petroleum Business Tax, 14.6 cents

Federal Tax, 13.2 cents

Transportation Costs, 12.7 cents

Refinery Costs, 10 cents

New York State Excise Tax, 8 cents

New York State Sales Tax, 7.5 cents

Average Local Sales Tax, 7.5 cents

The price per gallon soared up to $3.50 a gallon in September a 75% increase over the 1.99 price, meaning roughly that the New York State and local sales tax collections per gallon shot up to about 11.25  cents a gallon, from 15 cents a gallon to 26.5 cents, of which locally 13.2 cents was collected by the County and city.

Sales Tax increase follows curve of inflation rate.

The increase in sales taxes is actually slightly ahead of the inflation rate which averaged 1.74% a month from July 1 through September in the first quarter, according to InflationData.com. Nationally the Inflation Rate ranged from 3.17% in the month July to 4.69% through September 30. Below is the monthly rate of inflation for the year to date, computed by inflationdata.com, based on the Bureau of Labor Statistics information.

On the local level, the Westchester Business Journal, writing in May of 2005, predicted Westchester County inflation to be 2.7% in 2005.

Looking back on the White Plains Sales Tax Results at the end of the latest fiscal year, 2004-2005, based on the city’s own released financial figures,  the sales tax gains of 04-05 outpaced the inflation rates of 2003-2004 each quarter, up 15.5% in the first quarter (July, August, September of 04-05); up 7.5% in the second quarter (Holiday Season, October, November, December); Up  7.5% in the third quarter (January-February-March) of 2004-05, and 12% in the final quarter (April-May-June) of 2004-2005.

The average rate of inflation from July 2004 to June 2005 was 2.69%, according to inflationdata.com. The average rate of inflation from July 2003 to June 2004 was 3.15%, calculated by inflationdata.com.

A table of inflation rates may be located at www.inflationdata.com.