NORWICH – In its final meeting of the year, the Norwich town board discussed a challenge ahead in 2009 – a potential loss in sales tax revenue.

“We are anticipating a 20 percent less revenue gain from the sales taxes in the year ahead,” said Town Supervisor David C. Law.

Law said the anticipated loss of revenue stems from the slow down in the economy combined with a decrease in sales by local car dealerships, which generate sales tax revenue for the town.

Law said there were “at least eight, large to medium sized dealerships in the town,” and that after speaking with local representatives, he believed a revenue loss was imminent.

“Not just here; I’d say across the board for New York State. I’ve spoken with local dealers and businessmen and they have relayed concerns over the auto industry and dropping sales. They tell us either that their sales are ‘definitely off’ or they’re just ‘holding their own,’” said Law.

Law said the Town of Norwich collects about $320,000 annually in sales taxes and a 20 percent drop would mean a loss of about $64,000 in the projected 2009 budget.

“The revenue of the collected tax is what helps us offset other costs to the taxpayers,” said Law, who added, “the 20 percent is a conservative estimate the town is making. It will most likely not be that low. Even if it was, the impact wouldn’t be anything we couldn’t cope with.”

Law said the town may postpone some of its summer road work if the economy takes a turn for the worse.