KINGSTON – Ulster County’s sales tax revenue in 2025 came in at $180.9 million, $5.9 million more than projected.
During last year, the top industry sector with taxable sales was department stores with $471 million, followed by auto dealers at $397 million, restaurants at $383 million, and gas stations at $343 million.
And Gallagher noted the continued increase in online sales, driving up additional sales tax income.
“We lost Sears, we lost Bloomingdale’s, I’m talking about the Hudson Valley Mall here (in the Town of Ulster). We have seen other small stores pop up like Dollar General, but I do think we have seen a tremendous shift to online shopping sand that’s what really occurred over the last 10 years,” she said. “This capture of sales tax on electronic sales began in 2019 and we’ve really seen that revenue source really plateau over the last few years.”
Gallagher said in 2025, online sales generated $10 million in tax revenue.
She noted sales tax remains the largest revenue source for county finances, “but it is volatile and susceptible to a downturn in the economy.” She said, “policymakers must be cautious in their sales tax revenue assumptions moving forward.”
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