City sees increase in sales tax revenue
According to the Mississippi Department of Revenue, Brookhaven’s sales tax diversion for January was $528,929.12 and for February was $406,784.15. The number for January is up 2.79 percent from $514,551.97 in January 2015 and the number for February is up 0.1 percent from $406,379.11 in February 2015.
The total sales tax received since July 1 has increased from last year as well. The DOR sales tax year starts on July 1. From July 1 to February, the city received $3,730,041.65, which is a 2.04 percent increase from February 2015’s total of $3,655,322.08.
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 January reflects the sales tax collected in December of that year, which the city actually receives a check for in February. The number labeled February reflects the sales tax collected in January, and the city will receive a check in March.