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Controller reports mixed revenue picture; cannabis receipts flagged and capital spending remains high
Summary
The county controller reported year‑to‑date sales tax receipts improved in March but remain down 3.9% year‑to‑date. Cannabis tax receipt allocations appear underpaid, occupancy tax accounting will require a reversing entry, interest earnings are tracking above budget, and capital spending hit record levels in 2024 with continued activity in 2025.
Ulster County’s controller briefed the Ways and Means Committee on May 15 with a report showing mixed near‑term revenue signals and active capital projects.
On sales tax, the county received March payments that were up 12.6% from the same month the prior year, but year‑to‑date sales tax receipts remained down about 3.9% versus the previous year. The controller said March’s stronger payment improved the year‑to‑date position after earlier months were weaker.
Cannabis tax receipts were highlighted as a “huge red flag.” For the first quarter of 2025 (Dec. 1–Feb. 29), the county received $96,760 from the state comptroller for adult‑use cannabis taxes. The controller said county staff reviewed Office of Cannabis Management (OCM) sales figures that showed $5,733,000 in total sales in the county for that quarter; the county expected to receive 4% of taxable sales but observed a 1.7% allocation in the disbursement and believes it may have been underpaid by approximately $133,000. County finance said they are working with the state Department of Taxation and Finance and OCM to resolve the discrepancy.
Occupancy (hotel‑motel) tax receipts were reported at about $1,000,007; the controller said the figure is slightly overstated by roughly $338,000 and that a reversing entry will be needed. Net of the reversal, occupancy tax revenue is trending at roughly $1.4 million recognized to date (about 23% of the budgeted annual total); the county recorded $8.3 million in occupancy taxes in 2024 (about 31% of that year’s budgeted total).
Interest earnings through April 2025 were reported at about $2.7 million (35.2% of the budgeted amount); the controller noted the county earned $9.6 million in interest in 2024. Bank reconciliations were current through March 2025 and finance staff now have online access to county accounts.
On audits and programs, the controller noted the audit work on Community Action (nonprofit) is complete and a report will be released soon; the occupancy tax audit is winding down and has already returned at least $195,000 in additional tax revenues to the county through corrected taxability determinations. The controller also reported the county’s capital spending reached $41 million in 2024 (the highest the county has recorded) and that capital expenditures in the first four months of 2025 totaled about $12 million with large projects continuing (including the GOC construction project and an upcoming pool renovation design contract).
Committee members asked for a breakdown of the March sales‑tax numbers and whether cannabis tax proceeds from new retail operators (such as Woodstock) had been reported; the controller said no cannabis sales were reported for Woodstock in the first quarter. Finance staff said they will continue to pursue the cannabis tax discrepancy with state partners.
