Archive for Tuesday, August 3, 2010

City of Tonganoxie’s sales tax collection rebounds after bad winter

August 3, 2010

Tonganoxie’s sales tax collections thawed with the weather this spring, apparently bottoming out of a recessionary slide.

According to the Kansas Department of Transportation’s Web site, the city’s 2010 sales tax distribution was down 20.4 percent from the first quarter of 2009. The tax’s performance rebounded in April when the city’s sale tax distribution was 9.3 percent more than the same month in 2009. The sales tax distribution in May of $74,801 was not only the best since the start of the recession in November 2008 but the highest since the 3/4-cent tax for the pool was added in 2008.

In June, the $54,630 distributed to the city was 1.1 percent less than the $55,215 distribution of June 2009, but bounced back with a 10 percent increase in July with $59,211.

Despite the spring rebound, city sales tax revenue in the first seven months of 2010 was $389,891, or 3 percent less than the $401,987 distributed in that period in 2009.

Tonganoxie City Administrator Mike Yanez said the numbers provided evidence that while the recession may have found its bottom, things were still tough.

“I think we are just holding our own — stable and counting our blessings it’s at that level,” he said.

Of the 1.75 cents the city taxes on a dollar of sales, 1 cent provides revenue for the city’s general fund and the remaining is dedicated to paying for the new city pool. Yanez said the city budgeted $400,000 for sales tax revenue for the general fund in 2010 and again for 2011. The debt obligation for the swimming pool this year is $331,213.

Month by month sales tax distributions vary widely, with one late reporting retailer capable of throwing off figures. But fall months have typically been some of the city’s strongest sale tax performers.

The city also gets a share of the revenue from Leavenworth County’s 1 cent sales tax. In the first seven months of the year, the city received $128,000 from the tax.

Leavenworth County has collected $3.14 million thus far in 2010, down 2.6 percent from what it collected d

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