Sales tax revenues continue to climb: City sees 5.5% increase over last year
Published 10:33 am Tuesday, August 18, 2015
The city of Brookhaven continues to generate higher sales tax revenues compared to last year, and in some cases rivals revenue numbers of larger cities.
According to the Mississippi Department of Revenue, Brookhaven’s sales tax diversion for July was $465,883.75.
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, which the city actually receives a check for in August.
The sales tax diversion for July is up 5.5 percent from last year, with July’s diversion in 2014 being $441,585.09.
Brookhaven Mayor Joe Cox said these numbers are right on track with what the city has expected.
“We’re right on track,” Cox said. “We’re pleased with that, very pleased with that [number].”
Each month, Brookhaven gets close to topping the sales tax collections of much larger cities. For the month of July when Brookhaven’s revenues were approximately $466,000, Pascagoula collected approximately $467,000 — despite Pascagoula’s population being approximately 22,240 with Brookhaven’s at 12,515, according to 2013 census data. Regionally, Natchez collected approximately $443,000 for July and McComb collected $478,000.
Sales tax revenues are totaled starting in July each year. For 2014, the July 1 to present statewide revenue total was $34,211,998.
Brookhaven has enjoyed revenue diversions that increase more than state averages, while a large portion of other cities are collecting the same or less as last year.