Feb. sales tax totals experience holiday hangover
Published 6:00 pm Wednesday, March 23, 2011
Brookhaven and area residents may have had too merry of aChristmas as shoppers cut more than weight after the holidayseason.
February’s sales tax numbers, which reflect purchases made inJanuary, rang in at $357,550.55. The 2011 total is $32,504.37behind the amount hauled in for February’s sales tax numbers of2010.
“The first month of the year people are always sitting on theirpocketbooks and avoiding any major expenses,” saidBrookhaven-Lincoln County Chamber of Commerce Executive VicePresident Cliff Brumfield.
While Brookhaven saw consumers flock to store shelves inpreparation for Christmas, shoppers kept their wallets closedduring January. Brumfield said in December people are buying giftsand finishing their year-end expenses such as outstanding bills andproperty taxes, causing budgets to tighten in the month tofollow.
He mentioned the cold weather experienced in January also impactedthe city’s diversions from sales tax collections because residentswere forced to use more energy to keep warm, resulting in higherutility bills.
“All those factors combined kept people at home and out of ourstores,” said Brumfield.
For February, Brookhaven placed 24th among the state’s top salestax collectors.
Mayor Les Bumgarner said the city budgets with the expectation ofbringing in an average of $400,000 a month from sales tax. Whilethe month’s numbers fell a little short of the mark, December’ssales came in just shy of a half million – providing some wiggleroom.
“We’re kind of at that number now, but we have eight more months togo,” said Bumgarner. “I would have liked to have a little morecushion going into those eight months.”
Brookhaven was not the only city in the area to get caught with aholiday hangover.
McComb’s February diversions came in at $360,059.21, which is$15,483.86 below what they took in this time last year. Natchezhauled in $363,789.95, which is $23,226.12 below what they broughtin the previous year.
“I think a lot of people tend to overspend during Christmas andthey cut back in January,” said Bumgarner.
For a down month, businesses kept in pace with the surroundingneighbors. Brookhaven’s sales fell about $2,500 short of McComb’ssales and roughly $6,000 shy of Natchez’s sales.
“We didn’t beat them, but we are right there with them,” saidBumgarner. “Any time we beat McComb or Natchez or are close tothem, we feel pretty good about that.”
From July 1 to date, Brookhaven still boasts a higher sales taxtotal from this time last year.
Currently, the city has brought in $3,289,469.63. The diversionsfrom July 1 to date are $74,575.38 more than the previousyear.
Brumfield thinks as the temperature rises, so will the sales forBrookhaven’s business community. Bumgarner also thinks sales willheat up during the summer months, but there are going to be somedry spells.
“I think April and May (will be) pretty good and we have back toschool (sales) in September and August,” said Bumgarner. “Out ofthose four we hope to have two real good months. That’s our bestopportunity.”
With about 65 percent of the general fund coming from sales, thereare plenty of reasons to shop at home.
“We’d like everybody to buy locally if at all possible,” saidBumgarner. “At least give our local people a shot, a chance.”