Sales tax revenues up in the county

Sales tax revenues up in the county

Holiday 2015 shows strong returns

news@theeveningtimes.com

The retail economy in the county continues to grow, in some spots more than others. While County Treasurer Charles Suiter reported double digit increases in January sales tax receipts, West Memphis businesses generated but a fraction of a percent’s performance on the county one percent sales tax.

Suiter told the Quorum Court Tuesday that sales tax from Christmas shopping had arrived, showing a net 27-percent increase.

Meanwhile, according to the City of West Memphis, sales tax reports showed a year to date 2.73 percent decline on the county one percent.

However the news was not all bad in the Wonder City.

In mixed results city sales tax showed a holiday increase. With January and February revenue banked, the city enjoyed a 9.6 percent increase. Officials attributed the bump to Christmas sales. But, Budget Committee Chairman Tracy Catt identified a trend.

“If you look at the numbers over the last few, years you’ll see a very strong trend,” said Catt. “If you’ll look at back-to-school and holiday sales tax numbers, you’ll see those months always increase.”

The city receives its sales tax money a couple of months after it is collected by the state, so the Christmas retail season beginning in November actually shows up December, January and February. August back-to-school, most notably marked with a school supply sales-tax-free Satur- day each year, actually produces a month long shopping spree in the city. As a result, over the last few years September and October sales tax revenues have been stronger each go round.

The year-by-year holiday sales tax numbers show an upward trend for years 2012 through 2015. The steady climb for January started at $641,260 in 2012 to $757,000 in this year.

February has been on a steady incline over the same period at $905,100 this year with an increase every year over the five year span amounting to an increase of $161,000.

Catt said the back to school shopping numbers have produced the same strong trend for the last four years. September and October are each up three times out of the last four years. The tax report providing monthly recaps reflected May and April also up three of the last four years while the remaining months were up and down.

By John Rech