Tuesday, June 30, 2020

Shutdowns Cripple Sales Tax Revenues

Most cities in the Jackson metro area lost substantial amounts of sales tax revenue An April when Mississippi was under a strict shut-down order.  Flowood, Jackson, and Ridgeland were the loss leaders as they are the home to most of the malls and shopping centers.

Flowood: -$285,672
Jackson: -$221,524
Ridgeland: -$128,656
Pearl: -$82,471
Madison: -$42,781
Richland:  -$16,571
Brandon: -$1,775
State Line: $1,456
Canton: $30,041
Clinton: $51,427

Coupled with online shopping, the bad news spilled over into the YTD sales tax revenue for most cities.  Madison and Pearl show nice gains but the other cities went into the proverbial sales tax tank.


Jackson: -$1,086,722
Flowood:  -$443,121  
Richland:  -$198,186
Brandon: -$67,330
Clinton: -$36,687
Canton: -$18,397
State Line: -$5,802
Madison:  $168,966
Pearl: $589,759



Posted below is the raw data.  Although the report says May, the information is what was reported to DOR for April.


Brandon
April 2020: $487,037
April 2019: $488,812
Difference: -$1,775

YTD 2020: $5,393,872
YTD 2019: $5,461,202
Difference: -$67,330

Canton
April 2020: $276,910
April 2019: $246,869
Difference: $30,041

YTD 2020: $2,707,908
YTD 2019: $2,726,305
Difference: -$18,397

Clinton
April 2020: $453,822
April 2019: $402,392
Difference: $51,427

YTD 2020: $4,443,832
YTD 2019: $4,480,519
Difference: -$36,687

Flowood
April 2020: $735,317
April 2019: $1,020,989
Difference: -$285,672

YTD 2020: $10,787,667
YTD 2019: $11,230,788
Difference: -$443,121

Jackson
April 2020: $2,011,435
April 2019: $2,232,959
Difference: -$221,524

YTD 2020: $24,644,738
YTD 2019: $25,731,460
Difference: -$1,086,722

Madison
April 2020: $680,788
April 2019: $723,569
Difference: -$42,781

YTD 2020: $8,298,364
YTD 2019: $8,129,398
Difference: $168,966

Pearl
April 2020: $836,654
April 2019: $919,125
Difference: -$82,471

YTD 2020: $9,887,162
YTD 2019: $9,297,403
Difference: $589,759

Ridgeland
April 2020: $927,140
April 2019: $1,055,796
Difference: -$128,656

YTD 2020: $12,014,077
YTD 2019: $12,212,263
Difference: -$198,186

Richland
April 2020: $506,593
April 2019: $523,164
Difference:   -$16,571

YTD 2020: $5,818,223
YTD 2019: $5,551,647
Difference: $266,567

State Line
April 2020: $10,388
April 2019: $8,932
Difference: $1,456

YTD 2020: $99,910
YTD 2019: $105,712
Difference: -$5,802








17 comments:

Anonymous said...

Where do revenues from online sales go? A lot of the big box stores are doing buy online and curbside delivery. Are those sales counted as municipal sales or are they counted as online sales and go to the state instead of the municipality? If I order something at Walmart online and pick it up in Flowood is that sales tax going to Flowood or the state general fund?

Anonymous said...

11:50, awesome question - online retailers made a killing during the worst of the stay at home orders.

tonylloyd1970 said...

Why should I care about State Line, which is in Wayne County?

Anonymous said...

What's up with posting the revenues of State Line? Who cares?

Anonymous said...

I still say Shad needs to look into the corruption at DOR. You might be very surprised at what his office finds.

Anonymous said...

Cities don't get their cut if the sale is online. It all goes to the state.

Anonymous said...

It goes to the State, then the State pays to the municipalities the amount due the municipalities from said sales tax revenue generated in/by the City. If I am not mistaken, what ultimately gets paid back to the City/Municipality is something measly like 1.8% of the collected Sales Tax revenue that is paid to the State (that number may be off but its something small - but which for some small towns in Mississippi is what they rely upon to make ends meet).

Anonymous said...

Imagine if we had sales tax revenue from legal marijuana, like so many other states allow.

Anonymous said...

But how do you determine if you do an online sale in Madison County does Madison, Flora, Canton, Ridgeland get the credit back from the state? While the town needs to get part of the tax revenue either the state has to decide or you will continue to see property taxes increase 5% per year for the next 4 years to make up for it.

Anonymous said...

Cities receive 18.2% of every sales tax dollar collected. $1,000,000 in sales at 7% = $70,000. Cities get $12,740 of the $70,000 in sales tax collected per $1,000,000 in retail sales. The diversion was around 21% until the legislature lowered the municipal diversion several years ago to balance the state budget.

Anonymous said...

FWIW...the retail parking lots in Madison are FULL of Hinds county tags every weekend and there are many on weekdays also. The Democrats choke hold on Jackson is causing more damage every day but when we get the zoo up and the flag down it's all gonna change over night.

Bleacher Report said...

DOR, at least in their press comments, has totally ignored mentioned any tax money received via internet sales, whether or not there's a nexus in Mississippi? Who among us does not think internet sales have quadrupled during the pandemic?

Are these figures being concealed for some reason? Don't expect Gunn to bring this up since he's their front line cheer-leader and Hose-Head wants things to appear worse than they are for obvious reasons.

Anonymous said...

2:24, aren't you glad to have us?

Anonymous said...

Municipalities get 1/7th of the sales tax collected on sales in their town, but they get nothing if the sale was over the internet.

Anonymous said...

Could you imagine the sales tax revenue of Herb Frierson would “allow us” to mail order wine and liquor? Too bad the liquor store lobbyist have him by the balls.

Anonymous said...

Several food comments on here. As I said, there really needs to be an investigation at DOR to shake up their unaccountability to their employers....us! I’ve heard too many things that are rotten in that bunch. And they collect our money. Yep

Anonymous said...

@1:46 is spot on, except in very rare cases (like City of Jackson) where they are allowed by the legislature to charge additional sales tax above the 7%. I believe in those cases, all of the additional collection goes to the City.

As for online sales... If online sales were reported by the zip code to which they are delivered, the Cities could get at least some relief from the loss in revenue due to shift away from local "brick 'n mortar" businesses.


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