Archive for Thursday, October 21, 2010

City’s sales tax bounces back

October 21, 2010

Although it has yet to match last year’s performance because of a dismal first three months, Tonganoxie’s sales tax collection continued its positive trend in the year’s third quarter.

Figures from the Kansas Department of Revenue show the city received $173,000 in revenue from the local 1.75 percent sales tax in July, August and September. That was about $12,100 more than the city received for the same period in 2009. The strong quarter has helped to nearly erase a large disparity from 2009 that developed in the year’s first three months when distributions totaling $141,216 fell more than $36,000 short of that distributed in the same months of 2009.

Through the year’s first nine months, the city has received $504,084 from its sales tax, or 1.2 percent less than from the same period in 2009.

Tonganoxie City Administrator Mike Yanez said the continued rebound was encouraging.

“Maybe we’ve bottomed out,” he said. “All indications are we are stable. Maybe we’re treading water, waiting for an upward swing.

“I’m also encouraged we’ve done 11 building permits for new homes and we only did nine last year for the whole year.”

The September distribution, which was for sales taxes collected in the city in August and during the Leavenworth County Fair, totaled $64,000. That was a 6.9 percent increase from a year earlier. It was the city’s second-best distribution of the year behind the $74,800 it received in May.

With the exception of the city of Leavenworth, declining sales tax revenue is the norm in the county. Leavenworth County’s sales tax revenue is steady, and the $4.12 million it received is a 0.3 percent dip from the $4.13 million it earned in the first three quarters of 2009.

Tonganoxie’s slight dip in revenue looks good compared to Basehor’s double-digit decline. According to the state’s figures, the $156,000 that city’s 1-cent sales tax generated for the city through September was 10.4 percent less than the $174,126 distributed for the same nine months in 2009. Lansing ($406,057 or -3.7 percent) and Linwood ($15,216 or -8.8 percent) also had larger percentage drops than Tonganoxie.

In addition to distribution from its sales tax, the city also receives a share of revenue collected from the county’s 1-cent sales tax. Through the first nine months of the year, the city received $195,000 from that source.

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