Sales tax collections up in August, use tax down

While sales tax collections were up 4.7 percent in
August, for the fiscal year it has averaged 8.6 percent growth over the same
period last year. Use tax collections, taxes paid on goods purchased outside the
state but used in the city, totaled $3.18 million in August.

The August sales tax collections check included
monies collected for the second half of June and the first half of July. The
allocation of sales tax to the general fund for the month was $17,409,143. Sales
tax is the largest single source of revenue for the city. Much of the recent
increase is attributed to retail sales.

In his
report, City Manager Jim Couch wrote most segments of retail have been
performing well and consumers and businesses continue to exhibit confidence in
the local economy. Wholesale collections did see a decline, but it is
attributed to large growth last year over this year.

Couch
reported use tax was down due to large payments seen last year due to a mining company
making large remittances. He said those large payments last year made this year’s
numbers look worse than they actually were.

The
city’s sales tax rate is 8.375 percent. For every dollar in taxable sales, the
city receives 3.875 cents. Of that, two cents is allocated to the city’s
general fund, one cent goes to MAPS 3, three-fourths cent is dedicated to
police and fire, and one-eighth of a penny goes to the zoo. The remaining four
and a half cents belongs to the state.

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