Archive for Tuesday, January 17, 2012

Sales tax numbers up from 2010

January 17, 2012

Sales tax figures from 2011 indicate the recession may be loosening its grip on the local economy.

Kansas Department of Revenue figures show the $667,000 the city collected in the last calendar year was 1 percent more than that distributed to the city in 2010. That made it the first year the city has collected more revenue than the previous year from its 1.75-cent sales tax since the recession started in late 2008.

Still, the depth of the economic downturn can be gauged by comparing 2011’s collection with that of 2008, the only full year the city’s sale tax rate included the added 0.75 cents to pay off the swimming pool. That year, the city earned $745,000.

Cities and counties collect sales taxes from retail outlets within their jurisdictions but also big-ticket items such as home appliances and vehicles bought elsewhere. The city’s downturn in sales tax revenue thus reflects consumer caution and the collapse of new home construction, which boosted sales taxes as those new homes were furnished.

Leavenworth County, too, saw an increase in revenue from its 1 percent sales tax in 2011. The county collected $3.7 million from the tax, or 4.3 percent more than in 2010. That compared to the $5.5 million it collected in 2008.

Kansas Department of Revenue figures show the $667,000 the city collected in the last calendar year was 1 percent more than that distributed to the city in 2010. That made it the first year the city has collected more revenue than the previous year from its 1.75-cent sales tax since the recession started in late 2008.

Still, the depth of the economic downturn can be gauged by comparing 2011’s collection with that of 2008, the only full year the city’s sale tax rate included the added 0.75 cents to pay off the swimming pool. That year, the city earned $745,000.

Cities and counties collect sales taxes from retail outlets within their jurisdictions but also big-ticket items such as home appliances and vehicles bought elsewhere. The city’s downturn in sales tax revenue thus reflects consumer caution and the collapse of new home construction, which boosted sales taxes as those new homes were furnished.

Leavenworth County, too, saw an increase in revenue from its 1 percent sales tax in 2011. The county collected $3.7 million from the tax, or 4.3 percent more than in 2010. That compared to the $5.5 million it collected in 2008.

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