County Auditor-Treasurer Braidy Powers has received the first figures from the Department of Revenue for collection of the 1% local option sales tax. Those figures don’t tell him too much yet. He explained why to commissioners at Tuesday’s County Board meeting.
The state transferred $33,794.79 to the county this month based on collections made in April. The odd figure results because April collections included remaining taxes collected from the previous hospital sales tax, plus the new tax minus a start-up fee levied by the revenue department. In the future Powers said the state will send the county a fixed figure estimate per month.
He said the Department of Revenue will deposit $35,000 each month as an estimate of collected tax. Then they will adjust that amount with whatever tax was collected over and above the estimate. Adding the two figures together Powers said will give him an accurate accounting for the month. In the past the 1% sales tax generated an average of $1 million per year, but monthly totals can vary radically depending upon the season.
Powers said there will be a great deal of interest in sales tax collection figures because it is probably the best indicator of how the local economy is rebounding.