City sales tax revenue increases: 2015 June numbers higher than 2014
Published 10:13 am Wednesday, July 22, 2015
According to the Mississippi Department of Revenue, June’s sales tax diversion to the city of Brookhaven was $504,866.05 — $8,631 more than this time last year.
This is an increase of 1.7 percent. The state of Mississippi (all city sales tax diversions for June 2015) saw a 0.64 percent decrease from the state’s total in June 2014.
A slight majority of cities and towns in Mississippi show numbers that are decreasing or staying the same. There are some areas, like Brookhaven, that have seen increases from this time last year.
Brookhaven seems to hang steady around the state averages whether they increase or decrease, usually boasting slightly better numbers. For instance, statewide numbers for the month of June 2014 were up by 7.1 percent from June 2013. Brookhaven saw an 8 percent increase from June 2013 to 2014.
Regionally, Brookhaven is seeing increases while others decline. In June, Brookhaven’s sales tax revenue was 7.5 percent higher than McComb’s. In June 2015 McComb received $469,448, down 2.45 percent from June 2014.
Brookhaven Mayor Joe Cox said the city is situated within a regional trade area that draws people to spend money here. He also said this month’s revenues are on track for what the city budgeted them to be.
The sales tax revenue does not include the 2 percent lodging tax, which the city receives around the same time each month from the state as well. June’s lodging tax revenues were $10,705, up 61.7 percent ($4,085) from last month.
Sales tax has a three-month cycle. Month one — tax is collected by the retailer, month two — tax is reported/paid to the Department of Revenue by the retailer, month three — sales tax diversion is paid by the Department of Revenue to the cities. These reports are based on the month the tax is collected at the Department of Revenue (month two).
For example, the sales tax revenues reflecting the month of May are labeled June, for when the tax is reported to DOR, which the city receives in July.