Sales tax numbers edge up
Saturday, December 18, 2010
Is there such a thing as a “positive negative”?
Based on the first sales tax figures of the new fiscal year for Jefferson City, Finance Director Steve Schlueter said he thinks he has found one.
During the city’s regularly scheduled finance committee meeting, Schlueter presented the December sales tax figures. While the $880,000 the city took in during November did not meet the budgeted total of more than $1.08 million, it was still $80,000 more than the city took in this time last year, he said.
Schlueter said he sees that as a sign of improvement for the local economy, which he thinks will be helped by a few national signs.
“In light, I think, of the fact that the Congress passed the income tax rates where they are for all Americans, plus having reduced the Social Security tax by a full 2 percent, it will generate money in each working person’s check,” Schlueter said. “That will be used to go toward additional purchasing power.
“I don’t know that most middle Americans are going to be saving that much of that 2 percent, but they are going to be spending it on things that they have been putting off purchasing in the past,” he said.
While $80,000 will not solve all of the financial burdens the city is facing, Schlueter said, these early indications also mean the sale tax revenues from the holiday season, which will be available in January and February, could potentially be higher.