Sales tax up $105KPublished 2:46pm Friday, January 11, 2013
Picture $1,858,000 – that was the sales tax revenue for the first fiscal quarter in Alexander City, up 6.03 percent for the period compared to last year.races
“This is probably the most it has increased in the first quarter … I went back to 2008 and I couldn’t find one higher,” said Finance Director Steve Hays.
Hays said although it’s still too soon to consider the increase part of an upward trend, the numbers are encouraging.
“Next month it could go down significantly … but we’re still going to have a healthy gain,” Hays said.
Hays said the bulk of the increase came from the December collection period, which is based on November’s figures.
Ward Sellers, city license inspector, said he hopes that means people were shopping at home and said that new businesses in the area may have been a contributing factor.
“I suspect that Tractor Supply being here might have helped it some,” Sellers said. “They do a fair amount of business, and they weren’t here last year.”
For the first quarter for 2011, Hays said the city accrued $1,753,000, which makes this year’s figure a $105,000 increase.
“We’ve never been this high out of the gate, since I’ve been here,” Hays said. “Six percent is not a lot at the beginning of the year, but 6 percent at the end of the year (would be) very significant.”
Hays said if percentage increase remains constant, it would mean an extra $400,000 for the city at the end of the year, which, although not significant considering the high cost of projects sales tax goes toward, “would be a healthy increase in sales tax.”
“It’s certainly above and beyond what we expect so far, Hays said. “(The year) 2012 broke a trend of a decrease in sales tax for five years. Two years of having back-to-back increases would be a definite sign.”