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Ulster County controller reports steady early sales-tax receipts, flags accounting close-out work and short-term rental data limits
Summary
Controller Gallagher told the Ways and Means Committee early 2026 sales-tax receipts are up modestly, interest earnings and occupancy-tax receipts were summarized, and staff warned accounting reconciliation and unrecorded transactions leave the year-end position still being finalized.
Controller Gallagher briefed the Ulster County Ways and Means Committee on county revenues, audits and accounting status at the Feb. 12 meeting.
Gallagher said the adopted 2026 budget assumes $182.5 million in sales-tax revenue; the county received three January payments totaling $18,362,248, a 1.99% increase over the prior year and representing about 10.06% of the budgeted sales-tax target. He noted cautionary factors, including higher oil prices and international instability, that could cool the economy and affect receipts later in the year: "Early returns... look good, but I do think that you should be aware that... we could definitely see downturns in sales tax," Gallagher said.
On interest earnings, Gallagher said the 2026 budget anticipated about $6.5 million and the county had earned roughly $974,000 so far. He reported that some continuing costs previously funded with ARPA (including legal services, eviction-prevention services and food-security work) were approved to become ongoing county expenses.
Gallagher discussed occupancy taxes and short-term rental receipts, saying analysis suggests platforms such as Airbnb accounted for roughly $3.5 million (about 40% of 2025 occupancy revenues), in part because of a voluntary collection agreement with Airbnb and the new state law. He cautioned that the finance office currently cannot reliably split platform-driven receipts by municipality and that a rental registry (as it comes online) may improve transparency.
On accounting and audits, Gallagher said payroll journal entries are recorded and bank reconciliations are complete through November 2025; material unrecorded transactions remain (including certain DSS and federal/state aid revenues), and staff expect a final year-end position in the coming weeks. He estimated the county will close 2025 with a budgeted draw from fund balance in the range discussed in the adopted amended budget.
Gallagher said the finance office would provide legislators with additional analyses requested, including a focused review of any proposed occupancy-tax increase and its projected revenue effect.
The committee followed with questions about sales-tax downside risk, short-term-rental data, and the scope of future analysis; Gallagher said he would provide additional detail to sponsors and clerks.
