Monthly sales tax collections in Columbus and West Point saw more than 1% jumps in June, compared to the same month a year prior, while Starkville’s decreased by 2.3%.
Columbus received $956,119 from the Mississippi Department of Revenue, up $12,019 from June 2022.
The city has received $8,518,608 so far this fiscal year, compared to $8,026,127 by this time last year, marking a 6% improvement.
Sales tax diversions run on a three-month window, in which they are collected by retailers one month, sent to MDOR the next and then disbursed to cities and counties the third. Therefore, June diversions generally reflect sales from April.
Chief Financial Officer James Brigham told The Dispatch the city is now expected to exceed the $11 million it budgeted for by Sept. 30 and credits the success to more retail shopping in town.
“There’s just more places opening up, which creates more sales tax,” Brigham said.
The city’s 2% restaurant tax, which helps to fund the Columbus-Lowndes Convention and Visitors Bureau, recreation for the county and city and industrial development initiatives led by the Golden Triangle Development LINK, showed growth this month, bringing in $210,434, compared to $192,013 in June 2022. The city has collected $1,652,893 so far this fiscal year, compared to $1,429,325 by the same point in 2022.
The 2% hotel/motel tax, which funds Trotter Convention Center, brought in $35,862 this month compared to $31,751 in June 2022. Fiscal year to date, the tax has brought in $262,979 compared to $232,478 this time last year.
Starkville
Starkville received $762,961 this month, compared to $780,955 in June 2022, marking a 2.3% drop.
So far this fiscal year, the city has collected $6,668,376, compared to $6,536,391 by this time last year, a 2% improvement.
Mayor Lynn Spruill said the fall from June 2022 was the result of a lackluster Mississippi State University baseball season and lower than normal attendance, but that the city still expects to meet its $8.6 million budget.
According to figures released with its sales tax numbers, the city saw a slight dip in its 3% restaurant sales tax diversions and a jump in its 1% hotel tax as compared to last year.
The city has received $386,377 in restaurant tax collections — which assist in funding for economic development and tourism as well as sports facilities — a 0.9% dip from June 2022. The city collected $2,974,443 so far this fiscal year, compared to $2,748,254 in FY 2022, marking 7.9% overall improvement.
The city’s 1% hotel tax, which funds sports facilities, brought in $17,123, compared to $16,734 in June 2022, marking a 2% increase. So far this fiscal year, the city has collected $156,386, marking a 14.8% improvement from this time last year (134,842).
West Point
West Point received $230,666 in sales tax diversions from MDR this month, compared to $227,014 in June 2022.
That capped $2,581,985 in collections this fiscal year, which ends June 30, compared to $2,409,552 in FY 2022, a 6.9% improvement.
It also marks the eighth straight month the city has exceeded its 2022 fiscal year collections, following a slow start.
Mayor Rod Bobo said he credits the success of the tax to more businesses opening throughout West Point and more sports-related activities drawing out-of-towners to spend money there.
“We’ve been extremely blessed and fortunate,” Bobo said. “We have had more small business and retail infiltrating the downtown area. We’ve been hosting more tournaments at our park and rec facilities, which is bringing people to West Point that normally wouldn’t be here.”
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