Brookhaven’s sales tax diversion for July was $479,178, an increase of 2.86 percent from $465,833 a year ago, according to data recently released by the Mississippi Department of Revenue.

Total gross sales in July were $87 million for Brookhaven, down 6.13 percent from $92.3 million in July 2015. The county also saw a loss in gross sales since last year. In July, there were $105.6 in gross sales in Lincoln County, down 4.63 percent from the $110.5 in gross sales in 2015.

Sales tax has a three-month cycle. Month one is when the tax is collected by the retailer. Month two is when the tax is reported/paid to the DOR by the retailer, and month three is when the sales tax diversion is paid by the DOR to cities. This means the number labeled July reflects the sales tax collected in June of that year, which the city actually receives a check for in August.

City clerk Mike Jinks said the increase in the sales tax could have come from an increase in car sales.

“You’ve got graduations occurring toward the end of May,” Jinks said. “Car sales typically increase with people buying cars for graduation.”

Jinks said the city is budgeted at about $475,000 each month, and excess funds are saved to handle the months that fall below that number.

“We know during some months we won’t get 475 (thousand), but there are months we get over 500 (thousand),” he said.

Jinks said their revenue from sales tax diversions is within approximately $5,000 of projected revenues so far this year.