New York City’s sales tax revenue is anticipated to fall by around $111 million annually due to the growing number of remote workers.
The findings from the City Comptroller Scott Stringer may seem staggering at first glance, but Stringer says that this will be offset by the $7 billion in sales tax revenue the city is expecting next year.
However, small businesses are still expected to be impacted by slower sales as more people spend time at home and reduce the amount they are spending in businesses surrounding their office.
“While there may be some spending changes from taxable categories such as lunch at restaurants to tax-exempt purchases such as groceries, at the same time spending shifts could also occur from tax-exempt purchases, such as bus and subway rides, to purchases of taxable items such as home office goods,” the report said.
