City awaits annexation impact on sales tax

Published 5:00 am Wednesday, August 1, 2007

Brookhaven wrapped up the state’s fiscal year a little off itsmonthly and annual sales tax collection pace, but city officialsremained optimistic about June’s total and the months ahead whenthe effects of annexation will be seen.

According to the Mississippi Tax Commission, Brookhaven’s shareof June sales tax collections was $402,130.14. The total, whichrepresents sales made in May, was down about $11,000 from June2006’s $413,156.83.

“We were pleased with the $402,000,” said City Clerk Mike Jinks.”It was more than our budgeted amount.”

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The city budgeted to collect $380,000 during its fiscal year.While the state’s fiscal year ended June 30, the city’s fiscal yearruns from Oct. 1 through Sept. 30.

“We hope the monthly collections for our fiscal year stay in the$400,000 range,” Jinks said.

For June, Brookhaven’s total placed it 25th among the state’stop sales tax collectors.

For the state’s 2007 fiscal year, Brookhaven was down almost$200,000 from 2006’s pace. The city had $4,697,401.23 in 2007compared to $4,882,053.24 for 2006.

Jinks was not concerned about the drop in collections. He citedadditional revenue that was generated in 2006 as a result ofincreased spending following Hurricane Katrina.

“The 2005-06 year was influenced a good bit by Katrina,” Jinkssaid.

According to tax commission totals, Brookhaven’s fiscal year2006 total was up almost $800,000 from the fiscal year 2005 totalof $4,097,815.31.

Jinks also mentioned the upcoming impact of annexation onBrookhaven’s sales tax collections. Given the schedule for sales,collections and disbursements back to cities, Jinks said it wouldbe September before the city expansion gains would be seen.

“That’s when we’ll be able to see what the effects of the newarea will be,” Jinks said.