Monthly sales tax collections in Columbus and Starkville dropped 2.4% and 4.9%, respectively, compared to the same month a year prior, while West Point’s increased 1.2%.
Columbus received $943,570 from the Mississippi Department of Revenue, down $23,892 from July 2022.
The city has received $9,462,178 so far this fiscal year, compared to $8,993,999 in July 2022, marking a 5.07% 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, July diversions generally reflect sales from May.
“People being out of town and not going out in the heat are maybe two things keeping people from shopping and things,” Columbus Mayor Keith Gaskin said. “There’s all kinds of things that could affect it, but I’m still very proud that our numbers are up as much as they have been.”
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 $206,355, compared to $204,667 in July 2022. The city has collected $1,859,248 so far this fiscal year, compared to $1,633,992 by the same point in 2022.
The 2% hotel/motel tax, which funds Trotter Convention Center, brought in $40,945 this month compared to $43,285 in July 2022. Fiscal year to date, the tax has brought in $303,924 compared to $275,763 this time last year.
Starkville
Starkville received $745,267 this month, compared to $783,435 in July 2022, a 4.9% drop.
So far this fiscal year, the city collections of $7,414,643 are slightly up over last year’s $7,319,826.
Mayor Lynn Spruill said she attributes some of the lack of sales to a slowed spending rate of customers following a year of heightened consumerism in the area caused by the COVID-19 Pandemic.
“I would say that the post pandemic spending spree of 2022 was more of an anomaly and that the sales are starting to settle back down to a more normal growth pattern,” Spruill said. “That means the overall growth is continuing but the impact on a monthly basis is more driven by the local activities or lack thereof.”
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 received $378,343 in July restaurant tax collections — which assist in funding for economic development and tourism as well as sports facilities — a 3.7% dip from July 2022. Fiscal year to date collections of $3,352,786 are up 7.8% over last year’s $3,098,293.
The city’s 1% hotel tax, which funds sports facilities, brought in $21,097, compared to $18,528 in July 2022, marking a 12.9% increase. So far this fiscal year, the city has collected $177,483 marking a 14.57% improvement from this time last year ($153,370).
West Point
West Point has started its 2023-2024 fiscal year with a 1.2% improvement, bringing in $243,602 in July, compared to $240,602 at the same time last year.
West Point’s fiscal year runs July 1 through June 30.
Mayor Rod Bobo did not respond to calls or messages made by The Dispatch by press time.
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