Area sales tax collections continued to rise marginally in April, with West Point taking the lead with more than 4% growth compared to the same month last year, while Starkville and Columbus rose between 2% and 3%, respectively.
Columbus received $854,849 from The Mississippi Department of Revenue in April, up $31,155 from April 2022.
The city has collected $6,568,605 so far this fiscal year, compared to $6,073,502 by this time last year, marking a 7.8% increase.
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 dispersed to cities and counties the third. Therefore, April diversions generally reflect sales from February.
Chief Financial Officer James Brigham said the city is on its way to making more than $11 million for its current fiscal year. He credits that success to retail growth in Columbus and expects the trend to continue as more people spend money from their annual tax returns.
“It must be just certain times of the year when people shop,” Brigham said. “Shopping will go up probably because of tax returns, some people get refunds, and they go out and spend it. So that’ll affect sales coming up. I think just more retailers opening up means more retailing (shopping) in the area.”
The city’s 2% tourism tax, which helps to fund the Columbus-Lowndes Convention and Visitors Bureau, recreation for the county and city and economic development purposes for the Golden Triangle Development LINK, also showed growth this month, bringing in $185,442, compared to $153,105 in April 2022. The city has collected $1,328,104 so far this fiscal year, compared to $1,190,437 in 2022.
The 2% hotel/motel tax, which funds Trotter Convention Center, brought in $29,078, compared to $25,296 in April 2022. Fiscal year to date, the tax has brought in $210,696, compared to $196,493 this time last year.
Starkville
Starkville received $702,032 in sales tax in April, compared to $685,174 in April 2022.
The city’s fiscal YTD collections sit at $5,126,760, a 3.11% increase over last year.
Mayor Lynn Spruill told The Dispatch she credits the continued growth of the city’s sales tax revenue to more retail development in town such as the Triangle Crossing Center on Highway 12 and other retail shopping in Starkville.
“We continue to be a place where people want to come, participate and eat and drink and hang out,” Spruill said. “I’m delighted with all of that. We work our darndest to make sure that there are more things to do and more opportunities for people to stay in town. Triangle Crossing is the biggest, most recent development. And I feel sure that the impact of that continues to grow and be felt.”
The city has dedicated 60% of sales tax generated at Triangle Crossing to repay a 15-year tax-increment financing bond for the development. That kicks in after the development, which opened in fall 2022, has operated for a year.
According to figures released with its sales tax numbers, the city has continued to see growth in its 3% restaurant sales tax diversions but has fallen in its 1% hotel tax as compared to last year.
The city received $372,486 in restaurant tax collections, which assist in funding for economic development and tourism as well as sports facilities, an 8.6% improvement from April 2022 ($341,844). The city has received $2,573,144 this fiscal year, compared to $2,340,248 by this time last year.
The city’s 1% hotel tax, which funds sports facilities, brought in $19,350 this month, compared to $13,747 in April 2022. So far this fiscal year, the tax has brought in $135,391, compared to $114,359 in 2022.
West Point
West Point received $216,574 in sales tax diversions from MDOR this month, compared to $207,842 in April 2022.
The city has collected $2,331,600 so far this fiscal year, which began in July, compared to $2,183,125 by April last year, marking a 6.6% increase.
It also marks the sixth straight month the city has exceeded its 2021-22 fiscal year collections, following a slow start to the fiscal year.
Mayor Rod Bobo did not respond to calls and messages made by The Dispatch by press time.
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