City sales tax revenue up $98K for 2013Published 10:00am Saturday, May 11, 2013
Sales tax revenue in the city is still heading in the right direction, according to city finance director Steve Hays.
“We are up 2.32 percent, year to date,” Hays said. “That is $98,000 more than last year at the same time.”
Hays said the growth isn’t too significant, but that it is better than the alternative.
“We had sales tax revenue drop for several years consecutively,” Hays said. “2012 marked the first year there was any kind of increase at all.”
For 2012, $4,345,000 in tax revenue has been collected.
Hays said the city dipped to its lowest point from 2008-2011.
It is too early to tell, Hays said, whether the increase is a sign of a larger positive upswing for tax revenue, but the news is encouraging.
One bad month could offset all gains made, Hays added.
“The month-to-month changes can be pretty dramatic,” Hays said. “But over the course of the year we have had more positive months than negatives. Hopefully we aren’t continuing the downward slide.”
Hays said that the city doesn’t separate sales tax into categories so he couldn’t say which commodities accounted for the increase in sales tax.
Sales tax has been on an upward swing most of 2012.
As previously reported in The Outlook, the first quarter saw a 6.03 percent increase – which translates to $105,000 more in sales tax revenue.
“This is probably the most it has increased in the first quarter … I went back to 2008 and I couldn’t find one higher,” Hays said in a January interview.
“We’ve never been this high out of the gate, since I’ve been here. 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.”