Sales tax collection took a dip in 2012, but rebounded by the middle of the fiscal year, city officials said.
According to a sales tax collection figures prepared by Finance Officer Heather Keith tax collection is slightly down this fiscal year compared to the 2011-12 year.
Tax collection was down from September through November 2012 compared to the previous year. However, in December 2012 there was a 19 percent increase over the taxes collected in 2011.
The fiscal year runs from July 1 through June 30. The city receives a monthly check from the state for sales taxes collected two months prior to when the check is distributed.
For example, the December check was given to the city in February.
According to Keith, the city collected at total $3,322,758 in taxes in the 2011-12 fiscal year. In the previous year, there was a total of $3,202,756 collected.
The tax figures were presented to Mayor Mike Livengood and aldermen Monday night.
First Half Figures
The city collects a half-cent transportation tax for street construction and maintenance; two quarter-cent sales taxes for water and sewer operations and maintenance; and a 1-cent tax for general revenue.
Through the first half of 2012-13 fiscal year, the city has collected $1,656,924 in total sales taxes. That is a decrease of $2,235 over the first half of the 2011-12 fiscal year.
There was $828,463 collected for the general revenue fund, which is an decrease of $1,058 over the same time frame of the previous fiscal year.
Sales tax collected for the transportation tax was down $528 from the first six months of this fiscal year compared to 2011-12. The total collected in 2011-12 was $830,684.11.
The first quarter-cent sales taxes for water and sewer operations and maintenance put into effect in 1995 decreased by $264 from last year during the same time frame. In 2011-12, the tax collection totaled $415,341; while the quarter-cent sales taxes for water and sewer operations and maintenance that began to be collected in 2005, decreased by $385 compared to the first half of 2011-12. That year there was a total of $415,364 in sales tax collected.
Livengood said officials would like to see a 6 percent annual increase in sales taxes collected, but over the past three years there has been a 3 percent increase each year.
He added that many area residents have been struggling, so any increase is positive
“With the way the economy is, we are very happy,” Livengood said. “We were really concerned, because it had gone down quite a bit, but it’s jumped back up.”
Within the city limits there is now a total of 8.475 cents per $1 general sales tax collected, including 4.442 cents collected by the state and 1.75 cents collected by Franklin County. The Union Fire Protection District collects a half-cent tax.
Additionally there are two community development districts (CID) in Union where an additional 1-cent sales tax is collected.
A CID is a separate political subdivision under Missouri law governed by a board of directors. The purpose of the district is to generate tax revenue for infrastructure improvements.
The first CID in Union was established to fund infrastructure work at the Walgreens store.
The district is located at East Main and Highway 47 and includes McDonald’s restaurant, Phillips 66 gas station, Super 8 Motel, Movie Gallery and Walgreens.
The second CID was established in 2007 where QuikTrip and the Jack in the Box restaurant are located.