MT. VERNON — City sales tax receipts are down, with city leaders attributing the problem to the construction on Interstates 57/64.
"The 1 percent Sales Tax is down, but we haven't gotten July yet," said City Finance Director Merle Hollmann. "The last month we have received for the 1 percent Sales Tax and the 1 percent Home Rule Tax is March for the fiscal year that ended in April."
The 1 percent Sales Tax came in at a total of $5,487,322 for fiscal year 2012, which ended on April 30, 2013. The city budgeted a 3 percent increase over the previous fiscal year, at $5,631,000 — a decrease of $292,316.
In the 1 percent Home Rule Tax, a total of $3,818,070 was received for the fiscal year, with 3,894,000 budgeted — a deficit of $169,599.58.
"The good news is we are up on the State Income Tax receipts," Hollmann said. "In that tax, there was an 11.7 percent increase over the previous year, and an 18 percent increase over what was budgeted. ... That helped offset the losses by $220,000."
The Income Tax is a per capita tax — meaning it is collected throughout the state then disbursed to municipalities based on population. Receipts of the income tax were at $1,294,359.
Hollmann said he does not expect the downturn in sales tax receipts to continue after the Interstate construction is completed this fiscal year.
"We've had several really good years with the sales tax receipts," Hollmann said. "That has also helped our position during this downturn."
One percent Sales Tax receipts have been on the increase in previous years, with 6.9 percent in fiscal year 2011-12; and a 3.7 percent increase in 2010-11. The Home Rule Sales Tax receipts have also seen increases in previous years, with a 5.5 percent increase in 2011-12, a 3.4 percent increase in 2010-11; and a 5.7 percent increase in 2009-10.