Ulster County’s sales tax revenues reached an impressive $180,898,282 in 2025, surpassing the previous record of $175.3 million set in 2024. This substantial figure was detailed in a report released by Comptroller March Gallagher on February 28, 2026, indicating a robust economic performance within the county.
The sales tax revenue not only exceeded the $175 million that was budgeted for the year but also marked a 3.17% increase compared to the prior year. The sales tax rate in Ulster County stands at 8%, with half of that amount going to the county and the other half retained by the state of New York.
Consistent Growth Over the Years
According to the report, Ulster County has experienced annual increases in sales tax revenues for the past decade, with the exception of 2020, when a slight downturn of less than 1% occurred due to the Covid-19 pandemic. Notably, the county witnessed a remarkable recovery in 2021, when revenues surged by 21.65% as the economy rebounded.
The report further highlighted that the average growth rate for sales tax revenues over the last ten years has been 5.41%. In contrast, historical averages for annual sales tax growth have been closer to 3%. These figures illustrate a significant trend towards increasing consumer spending within the county.
Sales tax revenues account for 38% of the county’s legally adopted operating budget for 2026, indicating the critical role that these funds play in local governance and services.
Top Industries Driving Revenue
From March 1, 2024, to February 28, 2025, department stores emerged as the leading contributors to sales tax revenue, generating $18,845,278. They were closely followed by automobile dealers, which brought in $15,889,059, and restaurants and other eating establishments that accounted for $15,322,486. Gasoline stations also significantly contributed with $13,723,969, while traveler accommodations rounded out the top five with $9,410,076.
The report noted that the top 15 industry codes collectively represent approximately 68% of the total taxable sales in Ulster County. An increase in e-commerce has been particularly beneficial, especially following the 2018 U.S. Supreme Court decision in the case of South Dakota v. Wayfair. This ruling mandates that online sellers with gross sales exceeding $500,000 or over 100 sales transactions must collect and remit sales tax.
The report indicated that taxable sales in the electronic shopping category saw remarkable growth, with a 76% increase in the 2019-2020 fiscal year over the prior year, and a further 95% increase in 2020-2021. In the last two full sales tax years for which data is available (2022-2023 and 2023-2024), the annual growth averaged 4.5%.
Although the report could not isolate electronic sales from traditional retail, Gallagher emphasized that a substantial portion of revenue from department stores is likely derived from online sales. “Without the ability to tax online sales, local governments dependent on sales tax revenues would have seen significantly less revenue over time,” Gallagher stated.
Despite the positive outlook, Gallagher cautioned local lawmakers against becoming overly reliant on sales tax revenues, as such dependence could jeopardize the county’s fiscal stability during economic downturns. “Ulster County policymakers must be wary of relying too heavily on sales tax going forward as this revenue source is susceptible to declines during difficult economic times,” she remarked.
As Ulster County continues to navigate its financial landscape, the insights provided in Gallagher’s report will be crucial for future budgetary planning and economic strategy.
