Springfield sales tax revenue up

(From the City of Springfield)

The City of Springfield’s August sales tax check from the Missouri Department of Revenue is up 5%, or $135,691, compared to the amount budgeted. The sales tax check was $2,721,522, compared to the budgeted amount of $2,585,831.

The check reflects sales processed by the state in July from transactions made primarily in June. On a year to date basis, with August being the second month in the 2017-2018 fiscal year, revenues are up 6%.

Compared to the same month last year, monthly revenues are up 10%, or about $240,000.

The July check – the first of the 2017-2018 fiscal year – began a rebound after five months of below-budget sales tax checks. Sales tax revenues were down 10% in June, 4% in May, 5% in April, 8% in March and 4% in February. The City finished the 2016-2017 fiscal year with sales tax revenues down 4% compared to budget.

“It appears much of the backlog of unprocessed vendor remittances noted with the June distribution were processed with the July distribution to the City,” said Finance Director David Holtmann.

The City heavily relies on sales tax revenues as its main source of revenue to fund vital services, such as police and fire operations. In Springfield, approximately 56% of revenue in the General Fund comes from sales tax and use tax.