Sales tax collections are not feeling the bite of coronavirus as the fiscal year draws to a close.
While there were fears collections would take a big hit during the pandemic, the opposite proved to be true. After a modest slump for a couple of months at the beginning of the pandemic, collections surged with three record-setting months to close fiscal 2019-2020. Throughout the year, eight months set new high marks for the city’s monthly sales tax diversion.
The fiscal year closes with a cumulative total of $6.582 million, rising 4.5 percent, or about $285,000, from the prior year.
The final diversion of the fiscal year, returned to the city about a week ago, was $558,994.31, rising 8.9 percent, or about $45,900, from a year earlier. Over the previous five years, the month’s total averaged about $516,400.
The diversion received in September reflects sales that occurred in local businesses in July. It was a rosy month across the region and the state, as well, with 11 other Northeast Mississippi municipalities posting gains, and collections statewide rising 9 percent.
The 2 percent tourism tax on restaurants and hotels, which has taken a hit during the pandemic, is beginning to stabilize.
For the latest month, also reflecting July sales, the tax generated $117,031.89, down by 4.4 percent, or about $5,500, from a year ago. Across the state, all special taxes collectively were down by 2.7 percent from a year ago.
Other sales tax results from the region:
n Booneville – $190,679.18 (+19 percent)
n Burnsville – $15,149.39 (+16 percent)
n Farmington – $5,760.04 (+13 percent)
n Glen – $4,662.28 (+18 percent)
n Iuka – $86,072.07 (+18 percent)
n Kossuth – $3,845.08 (+14 percent)
n Rienzi – $3,606.76 (+7 percent)
n Ripley – $142,310.49 (+18 percent)
n Tishomingo – $16,639.40 (+33 percent)
n Tupelo – $1,867,233.11 (+6 percent)
n Walnut – $28,158.92 (+34 percent)