WEST POINT — A handful of retail developments in the Clay County seat during the past fiscal year drove a five-digit growth in the city”s sales tax revenue.
Between the 2007-2008 fiscal year and the 2008-2009 fiscal year, which ended July 1, West Point officials saw a nearly $30,000 increase in the city”s sales tax revenue, according to reports from the Mississippi Tax Commission.
“The biggest contributors to the increase were the super Wal-Mart and the CVS Pharmacy,” Klutts said. “And we have a Hampton Inn hopefully opening up here soon, so we are hoping to see that upward trend continue into this fiscal year.”
The addition of retail giants like the Wal-Mart Supercenter on Highway 45 Alternate south of downtown West Point “greatly impacts” the city”s economy by drawing in shoppers throughout the county who may otherwise have spent their money elsewhere, Klutts said.
However, between January and June 2009, West Point, like many other cities across the country, has seen a steady decline in its sales tax revenue from nearly every category of retailer.
According to tax commission documents, West Point in June saw its sales tax revenue decline nearly $124,000 compared to the city”s January 2009 collections.
The decline came in the face of a more than $1.5 million decline in total sales throughout the city between January and June.
Of the categories tracked by the state Tax Commission, West Point saw its largest sales tax decreases in the six-month period in general merchandise and miscellaneous retail, which saw a combined drop of $126,489; and in food-related collections, which saw a decrease of about $26,332.
Between January and June, West Point lost five machinery and equipment sales companies, four food-related businesses, three contracting businesses and 13 general merchandise and miscellaneous retail establishments, according to the report.
However, the city during the same period also saw a nearly $11,000 increase in revenue collected from automobile sales and a nearly $200 increase in collections from machinery and equipment sales.
“Any changes like that will have an impact on your city,” Klutts said. “It”s hard to say what will happen going into this new fiscal year because the economy has been so unpredictable.
“If the tax collections were to decline sharply, the city may have to consider making budget amendments halfway through the year,” Klutts added.
Because sales tax revenue makes up a large percentage of the city”s budget, a sharp decline in collections could lead to fewer projects completed by city departments. However, the city currently is financially sound, Klutts said.
“Right now, we are fine,” Klutts said. “We are optimistic for this fiscal year.
“With the Hampton Inn opening up soon, we are hoping that will lead to other businesses and restaurants opening up around it,” Klutts added. “Any time new businesses open up in the city, it really helps us out.”
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