Sales tax revenue for the most recent collection was up just 0.6 percent compared to the same period last year, but it was still the largest December collection on record, Chief Financial Officer/City Clerk Jason Muninger said this week.
“We’re comparing back to some pretty big numbers over the past couple of years so we’re showing a pretty modest increase in revenue, but this is actually our largest collection in December,” Muninger said.
December receipts totaled approximately $1.59 million in 2020, $1.81 million in 2021, $1.94 million in 2022 and $1.95 million this year.
“It was up 13.6 percent two years ago and grew 7 percent last year, so matching those numbers is a good place to be,” Muninger said.
Muninger said collections are up 1.7 percent for the year, and 3.8 percent over budget expectations.
“We are up 1.7 percent year to date over last year’s collection,” he said. “And we are currently 3.8 percent over what we budgeted for, so we’re about $429,000 over the anticipated budget.”
Muninger said year-to-date sales tax collections are $11,735,715, compared to $11,537,445 for the same period last year.
Use tax revenue for the period was $519,000 compared to $388,745 collected the month prior. The use tax was implemented in January of this year, so there are no comparisons to prior years available. The City budgeted a conservative $2.5 million (or $208,333 per month) in use tax revenue for the year.
“Of course we’re comparing back to zeros right now, but this is the largest use tax collection we’ve had since the tax was implemented in January. Prior to this month, collections have ranged between $340,000 and $400,000,” Muninger said.
Muninger said the most recent collection represents online sales made primarily in October, which “is considered the beginning of the holiday shopping season.”
“Because this is a new tax, it is difficult to project anticipated revenue, but I would say the January and February collections, which will be based on sales made in November and December, will be even higher,” Muninger said.
Sales and use tax revenue is used to fund most general operations of the City, including police, fire, codes enforcement, engineering, parks, building inspections and permits, and street maintenance.