WPCNR CITY HALL CIRCUIT. By John F. Bailey. March 3, 2009: The city is on target to make its sales tax despite a soft holiday season, Commissioner of Finance Gina Cuneo-Harwood told WPCNR Monday. According to January sales tax receipts, with 7 months gone in the fiscal year, the city is sitting on $28.8 Million Sales Tax collected and needs about $16.6 Million the next four months to meet their sales tax target of $45.4 Million.
If retail sales remain the same as 2007 the next five months as they did last year the city will make it easily, generating $15.8 Million in sales through May, when the budget has to be approved and stands, even with a decline of 12% in June sales, will still generate $21 Million in sales coming in at $49 Million in sales tax for the year
However if the 12% decline in sales that appeared in the holiday quarter prevails the city will generate only $620 Million in retail sales that will produce only $14 Million in sales tax giving the city only $43 Million by the end of May. You could say that the strong June of last year even if it declined 12% due to the economy would still give the city $4.5 Million to close the year so the city looks good for abou $47.5 Million sales tax even if sales continue to be off 10 to 12 % the next four months.
This January, the sales tax is 2-1/4 %. It appears that retail sales for January are flat – even though the city still generated the same $200,000,000 in spending they saw last January. The net sales tax is slightly ahead of what 2-1/4% should bring in, which is good news.
Commissioner of Finance, Gina Cuneo-Harwood said, though, that last quarter was up in the first month (October, 08), so she is not as confident that the city will make its projection, since Fortunoff and
To date the city has collected $28 Million. However to do that the city needs to bring in $16.1 Million, (without Fortunoff and
How does it look? From February through April last year taxing at 2%, the city generated $10.4 Million in Sales Tax. In May and June the city collected 8.2 Million.
Retail sales in February of last year were an estimated $180,000,000; in March, $180,000,000; April, $175,000,000; May, $170,000,000; and in June, the city did $220 Million in retail sales to generate an all-time record sales tax for a month of $4,794,423. However, with inflation basically at zero now, and major price-cutting in effect, those levels may be off from 2007 levels.
Should the city generate the $950 Million retail sales from February through June it generated in 2007 (before the current recession), it will earn $21 Million in sales tax easily making its sales tax target, even surpassing it, hitting $49 Million even in a down economy.
With the additional ¼%, and if retail sales do not slump off last year’s levels, the city may make their $45 Million. February and March will say a lot.
If the city continues its 12% decline in retail sales it experienced in the last quarter, that does not necessarily jeopardize this year’s sales tax target, but bodes ill for next year’s budget. It raises the question of whether the city should budget for more sales tax than the $45.4 Million expected this fiscal year.



