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Tax receipts still on the rise for city of Brookhaven

The city of Brookhaven is seeing another increase in receipts from tax diversions.

For June, the most recent month figures were available, receipts came to $513,091.31, nearly $20,000 more than the previous month. The number also represents an increase over June last year by just under $25,000.

The 2017 trend of rising receipts has continued, though last year’s receipts dropped from May to June by almost $25,000.

Overall receipts from the beginning of the state’s fiscal year on July 1, 2016, until the end of June 2017 have reached $5,819.254.88. Totals for 2016 were $5,699,248.66.

When people spend more locally, more tax is collected and more monies are diverted to the city. City Clerk Samantha Melancon has an idea of the source of the recent rise.

“I think the increase comes mainly from new car sales for graduation gifts or going back school car purchases,” said Melancon. “And I think some of it, too, is downtown — it’s booming.”

Sales tax has a three-month cycle. In month one, tax is collected by the retailer, then paid to the Mississippi Department of Revenue in the second month. In the third month, the diversion is paid by MDOR to the cities. Reports are based on the month the tax is collected — month two.