Archive for Saturday, May 31, 2008

County, city show sales tax surplus

May 31, 2008

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By the numbers

City of Craig 2008 sales tax revenue

• Budgeted: $4.8 million

• Currently 8 percent over budget through March

• $88,061 additional revenue

Moffat County 2008 sales tax revenue

• Budgeted: $2.6 million

• currently 5 percent over budget through March

• $26,814 additional revenue

— If sales tax numbers are a trustworthy economic indicator, then Moffat County and the city of Craig are doing better than expected, despite the nation’s reported downturns.

Sales taxes reflect consumer spending, which is growing in the city and county.

The city collects its own sales tax — 2.25 percent of money spent — as well as a little more than a third of sales taxes collected by the county, an additional 2 percent on sales costs.

Both revenue streams are bringing in more money than budgeted, city Finance Director Bruce Nelson said. Taken together through March, the revenue puts the city about 8 percent over budget, equaling about $88,000 more for the general fund next year.

Nelson attributed the continuing growth to high-dollar energy industry developments bringing workers to the area and expanding the tax base.

“If we keep seeing people come here,” he said, “we might expect (revenue) to keep going up.”

The county is in similar shape.

County Budget Analyst Tin­neal Gerber said county figures show sales tax revenue about 5 percent more than budgeted through March. That nets roughly an extra $27,000 split between the Moffat County Public Safety Center and the county’s general fund.

Actual sales tax dollars come in about two months after a consumer spends the money, Nelson and Gerber said, which is why their numbers show revenue through March.

Neither could say whether revenue increases would continue.

Although sales tax figures are up compared to last year, Gerber said, gains from year-to-year are slowing.

Percentage growth compared to last year “is actually probably a little down for the county compared to previous years,” she said.

Sales tax revenue shot upward in 2006 and 2007, Nelson said, probably because of new larger retail stores coming to the area.

“If people can find what they’re looking for in town,” he said, “they won’t go looking for it out of town.”

But, sales taxes fluctuate all the time because of a variety of factors, and they are hard to predict, Nelson said.

“It’s kind of like the stock market,” he said. “One day it’s up, and one day it’s down.”

There are some factors working against consumer spending in the future, Nelson added.

“The economy is getting tighter. And with the price of gas going up, people have less money to spend on other things,” he said. “Right now, we’re within budget with the services we’re providing, and we have a little extra.

“But that’s right now.”

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