Tuesday, September 12, 2017

Springfield sales tax revenue down

(From the City of Springfield)

The City of Springfield’s September sales tax check from the Missouri Department of Revenue is down 7%, or $319,017, compared to the amount budgeted. The sales tax check was $4,153,204 compared to the budgeted amount of $4,472,221.

The check reflects sales processed by the state in August from transactions made primarily in July. On a year to date basis, with September being the third month in the 2017-2018 fiscal year, revenues are up 1% compared to budget.

Compared to last September, monthly revenues are down 14%, or about $665,000.

“While sales tax collections are down for the month, it appears over a third of our largest vendors did not get processed for the current period,” said Finance Director David Holtmann.

The September check is the first below-budget check the City has processed since June, after the City started the new fiscal year off with a rebound. August’s check was up 5% compared to the budgeted amount.

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.

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.

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