Sales tax has positive effect on Winston economy

By Daniel Brunty The Winston County Journal

With all the news about the economy, it is rare to hear good news about it. Fortunately for the towns in Winston County, they have good news to report.

The Mississippi Department of Revenue recently released their Diversions to Cities from Sales Tax Collections list, in which has a three-month cycle. This report lists sales tax collected during the month of February, but the diversion is paid to the cities at a later time.

The city of Louisville collected a total of $152,540.24 in city sales tax reported for the month of April 2012. This was an increase of $7, 499.06 from the April 2011 total of $145,041.18 reported.

“1.25 centson every dollar is returned to the muncipality,” said Louisville Mayor Will Hill. “Fortunate for Louisville and Winston County we have auto dealerships, grocery stores, lodging, retail stores and many others who help bring in sales tax revenues for the city.

The total sales tax collected by the city of Louisville from July 1, 2011 until present time is $1,406,135.67. This was an increase of $90,862.13 from the $1,315,273.54 reported from the July 1, 2010 period.

The city of Noxapater also seen an increase in their sales tax collections as well, with a total of $8,537.75 reported to the city for April 2012. This was an increase of $120.19 from the April 2011 total of $8,417.56 reported.

The total sales tax collected by the city of Noxapater from July 1, 2011 until present time is $84,831.19. This was a decrease of $450.67 from the $85,281.86 reported from the July 1, 2010 period.

Since the start of the calendar year, the city of Louisville has seen their sales tax collections increase each month. The city has seen good sales tax collections for the past two years. Mayor Will Hill is pleased with this, especially since the sales taxes will help the city’s budget.

“This is all the more reason to shop at home and support local businesses,” said Hill.

Hill added that sales taxes make up about 45 percent of the city’s budget and that ad valorem property taxes make up only about 20 percent of the city’s budgeted revenues.

“Our city is dependent on sales taxes in order to continue to provide the services and environment the residents need and expect,” said Hill.