Auditor - Sales tax increase for county is needed

Faced with the first sales tax revenue decline in Cape Girardeau County in 22 years, county commissioners should ask voters to approve a half-cent sales tax increase, county Auditor H. Weldon Macke says.

Cape Girardeau County government received fewer sales tax dollars this year than last, the first such decrease since the current half-cent general revenue sales tax was established in 1980. Macke's proposal would raise the county sales tax to 1 cent.

Macke proposes using some of the tax money to eliminate the county's 23-cent property levy for roads and bridges. Even with a rollback, the tax could raise $2.5 million to $3 million, which could be used for new road construction and more funding for the sheriff's department including boosting deputies' pay, Macke said Thursday.

The idea is just in the planning stages, but Macke said a tight budget may force county officials to put a tax issue before voters next year -- possibly in August. A simple majority would be needed for passage.

"We do need more revenue because the sales tax has flattened out," said Macke, who is retiring at the end of the year.

The county has received $5.33 million in sales tax checks in 2002, down 0.35 percent from $5.35 million a year ago.

Macke said the tax dollars don't include this year's Christmas sales. The December check -- down nearly $7,500 from the same time last year -- reflects sales from October and the first part of November.

Businesses collect state and local sales tax money and send it to the state, which keeps its share and returns the rest to local governments in monthly checks that reflect taxes collected for the previous month or two.

This year's sales tax decline reflects a sluggish economy, said Dr. Bruce Domazlicky, a Southeast Missouri State University economist.

Domazlicky said job losses in the region are partly to blame. Over the past year, the 24-county area of Southeast Missouri has lost 10,000 jobs, he said.

"People's incomes are stagnant," said Domazlicky. "That will cause them to be a little more cautious about spending."

Cape Girardeau County has levied a half-cent sales tax since 1980. The county's voters approved the tax measure in November 1979 by a 2,266-vote margin.

Half of the money goes to reduce the county government's general revenue property tax.

The county receives enough sales tax to totally eliminate the general revenue property tax. The county hasn't had such a tax since 1982. It does have a road and bridge levy that helps fund the county highway department. But it depends on sales taxes and fees to fund everything else.

Gerald Jones, presiding commissioner, said the commission hasn't taken a hard look at Macke's tax proposal yet. "We are going to see how we can do with just cutting things internally," he said after commissioners spent Thursday morning working on the 2003 budget.

Commissioners hope to approve the budget on Dec. 30. The new fiscal year starts Jan. 1 and county officials already know the budget -- which preliminary estimates put at $12 million -- will be tight.

Macke, who has volunteered to lead a campaign to pass a sales tax, believes the county government will find it hard to get by without increased revenue.

Larry Bock, 1st District commissioner, agrees. "We are going to have to consider a sales tax," said Bock.

Bock said he wanted to replace the property tax for roads and bridges with a sales tax as long ago as 1993 but couldn't convince fellow commissioners to put such an issue on the ballot.

The county has $5 million in investments in a reserve fund, but Bock said that's for emergencies. The county government shouldn't tap into that fund to pay ongoing expenses, he said.

mbliss@semissourian.com

335-6611, extension 123