The good news: Sales tax collections in New York continue to soar, a sign consumers are not slowing down their spending even as storm clouds gather on the economy. 

The bad news: The boosted revenue for local governments is likely due to the ongoing inflationary prices consumers are still paying over the last several months. 

State comptroller Tom DiNapoli's office on Wednesday announced sales tax collections had increased by 16.7% in May compared to the same time a year ago. Collections reached $1.7 billion, an increase of $242 million last year. 

New York City's sales tax collections reached $720 million, a 13.3% jump, DiNapoli said, compared to May 2021. Every county in New York saw double-digit percentage point increases in sales tax collections. DiNapoli pointed to inflationary pressures, as well as gas prices having an effect. 

Yates County saw the highest increase in May at nearly 35%. 

“Sales tax collections for most local governments were quite strong in May, as consumers continued to face higher prices for goods and services in the state,” DiNapoli said. “My office is closely monitoring New York’s economy, including the impact of inflation on consumer behavior."