Sales tax revenue climbed in 2010

Cape Girardeau County experienced an increase in revenue generated through sales tax in 2010, and Treasurer Roger Hudson anticipates that despite a slower than expected start to 2011, this year will see growth as well.

"January 2011 was surprisingly down, 16.56 percent. Wow," he said.

In January 2010, sales tax revenue was $587,184.27 compared to $489,945.61 last month. "Seems odd with all the news of increased Christmas spending."

Hudson said monthly sales tax collections have been very unpredictable the last few years, with the different payment options available to businesses. Looking at a quarterly report presents a more accurate picture of tax revenue, he said.

"If I had to predict, I would guess we will have a good February and March, and the revenue for the first quarter 2011 will be $1,600,000 plus," he said.

Hudson said the last four years have seen growth in the first quarter.

While no one is thrilled to be starting the year down more than $97,000, Hudson remains cautiously optimistic.

"That's a lot to make up," he said.

In 2007, the county started the year down by a little more than 5 percent, yet had almost 4 percent growth for the year. By comparison, 2008 and 2009 saw January growth, but ended the year down from previous years.

Cape Girardeau finance director John Richbourg said sales tax revenue also increased in 2010 for the city, but he doesn't have any specifics predictions for 2011.

The 2010 revenue generated from the city's one percent sales tax was $8,767,411, he said. Richbourg said that was about 2 percent more than the 2009 total of $8,593,355.

Richbourg said the higher sales tax revenue seems to be an indicator that the economy is starting to improve. He specifically points to improved sales of big ticket items, such as cars and trucks.

"I think that's the most significant impact," he said.

With only one month of sales tax revenue reported thus far in 2011, Richbourg said he is hesitant to make predictions for the year.

"I don't have the foggiest, but I think we'd at least repeat 2010," he said.

He said when dealing with these types of forecasts, it's best take a conservative approach.

"I think we'll see slow to moderate growth. I really hate put a percent on it," he said.

Susan Godorov with Centro Properties, the owner of the West Park Mall in Cape GIrardeau, said with the recent influx of shoppers at the mall, it was easy to see why sales tax revenue had increased.

"We continue to see strong gains in shoppers at the West Park Mall," she said.

She predicts busines will continue to increase as the country's economic condition improves.

Like the county and the city of Cape Girardeau, Jackson also saw increased sales tax revenue in 2010. The total for the year was $2,042,934, a jump from the 2009 total, $1,998,624.

Jackson's January 2011 sales tax revenue of $149,772 was almost $36,000 less than the 2010 total of $185,676.

City officials did not return calls for comment regarding their sales tax revenue and any predictions they may have for 2011. The city will add a tax of a quarter-cent sales tax in April to support fire department operations.

Nationally January produced higher than expected retail sales. According to an Associated Press report earlier this month, the International Council of Shopping's index of 32 stores showed a 4.8 percent increase in January. An increase of 1.5 to 2 percent had been expected.

With unemployment rates decreasing nationally, economists are expecting the national growth of retail sales to continue in 2011. The Feb. 4 report from the Labor Department said the unemployment rate was down. 4 percent from the January report to 9 percent.

The department's December numbers for Cape Girardeau County show an unemployment rate less than the national average at 7.5 percent. That number is slightly higher than the 7.4 percent unemployment rate the county had in November.

cbartholomew@semissourian.com

243-8600