Sales tax totals reflect slower summer spending

Published 6:00 pm Friday, September 30, 2011

Downward looking numbers markedBrookhaven’s latest sales tax report, continuing a trend that beganthe previous month.

    The city’s August 2011 sales tax report indicated $401,267.83 inrevenue last month, a small decrease from the $411,896.37 collectedin the same period last year.

Subscribe to our free email newsletter

Get the latest news sent to your inbox

    The latest numbers are a drop from the approximately $426,000reported in July. July’s report was itself an approximately $10,000drop from the prior report.

    Cliff Brumfield, Brookhaven-Lincoln County Chamber of Commerceexecutive vice president, described the drops as seasonallyrelated.

    “We’re looking at the tail end of summer. Folks are gearing back upfor school,” Brumfield said. “That did create school-specific needsbut does keep people from spending in different areas.”

    Brumfield said that a further seasonal drag on local sales taxrevenue is that much summer spending occurs outside the area.

    “A lot of families spent their extra budget allowance for traveland summer activities,” Brumfield said.

    Brumfield remains optimistic.

    “We do expect the trend to reverse itself,” he said.

    The numbers did not surprise Brumfield. He said shopping patternsand feedback from local businesses usually provide a good forecastof sales tax numbers.

    Brookhaven’s August numbers came in below regional cities ofcomparable size. McComb pulled in $412,376.94 while Natchez saw$421,846.96 in revenue.

    Brookhaven, McComb and Natchez all saw a decrease in their Augustreport compared to August of 2010.

    Comparably sized cities elsewhere in the state also outperformedBrookhaven in retail activity. Madison saw $420,799.74 in revenueand Oxford $495,199.35.

    The reported revenue of approximately $401,000 sits right at whatthe city expected to receive monthly in the 2010-11 fiscalyear.

    The city’s budget for that fiscal year projected $4.8 million insales tax revenue, an average of $400,000 a month.

    City Clerk Mike Jinks said there were several months below the$400,000 number, but several above so everything averages out.

    City leaders felt comfortable increasing projected sales taxrevenue for the 2011-12 fiscal year to $410,000 a month. Jinksexplained the first budget sheet prepared for budget work sessioncontained the projection of $400,000 monthly, but later sheetsincreased that number.

    “Based on the way the last few checks were coming in we felt wecould safely say $410,000,” Jinks said. “We won’t get $410,000every month but it will average out.”