Local sales tax collections lagging

Some areas of Missouri have good news to report, but others such as Richmond do not.
The Missouri Office of Administration released March revenue numbers last week that show an overall decline of 0.6 percent from $5.43 billion to $5.4 billion for the fiscal year compared to the year before. However, State Budget Director Linda Luebbering said last week that general revenue collections are up 6.3 percent for the month of March compared to March of 2008.
The uptick has not translated locally however. City Collector Marilyn O’Dell said yesterday that March sales tax collections were down $9,000 compared to March 2008, or about 10 percent. She said overall tax collections for the fiscal year are down as well. However, sales tax collections are up more than $19,000 from the month of February. Ray County Collector JoAnn Burnine said county sales tax collections are also down year to date by more than $18,000.
The state is also reporting that income tax collections are up 2.2 percent from last year, however there is reason to be concerned on the business development front.
Corporate income and corporate franchise tax collections are down 9.9 percent for the year and 23.6 percent for the month of March.
In a statement released last week, Luebbering said net gross collections decreased by 4.3 percent in the last quarter.
“While this growth rate is among the lowest of the last 15 years, it was not unexpected, and was in line with the current revenue forecast,” she said.
Luebbering said her office will continue to monitor the situation to ensure expenditures do not exceed revenues.

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