Cape County, city sales tax funds reported down

JACKSON, Mo. -- Cape Girardeau County government and the city of Cape Girardeau have garnered fewer sales tax dollars so far in 2002 than in the first three months of last year. The city of Jackson, on the other hand, has landed more sales tax money.

County and city officials aren't sure how it all adds up. A local economist points to sluggish economic growth as to why the county and the city of Cape Girardeau have seen a drop in sales tax revenue.

Cape Girardeau County hasn't hit the jackpot on sales tax dollars so far this year, but things are looking up.

The county's March sales tax check totaled $676,143, up $16,216 over a year ago. H. Weldon Macke, county auditor, said, "It was a lot better than I thought it would be."

Businesses pay sales taxes to the Missouri Department of Revenue, which then writes checks to the local governments for the tax money they are owed.

Even with the higher March check, the county's half-cent sales tax revenue is lagging behind last year's, Macke said.

The January, February and March checks added together totaled more than $1.36 million, down $38,705 from a year ago.

The checks reflect sales from as long as two months ago, Macke said. The March check, for example, includes some December sales.

The city of Jackson also received a bigger March sales tax check, more than making up for lower checks in January and February. The $233,644 in revenue from a 1-cent general sales tax was up $27,000 over the previous March check.

For the first three months of this year, sales tax revenue has totaled $426,395. That's up $14,635 over the same period a year ago.

Major businesses like Wal-Mart and the Buchheit hardware store have generated a lot of sales tax revenue, said Mary Waller, Jackson city clerk.

"At least we are up instead of down," she said.

While the March check was up for the county and Jackson, the city of Cape Girardeau received less revenue from its 1-cent general sales tax than a year ago.

Revenue flat

Cape Girardeau's March check was $991,308, down $6,725 from a year ago.

For the first three months of this year, the city has received just over $2 million in revenue from its general sales tax. John Richbourg, city finance director, said that's $104,000 less than over the same period last year.

"It's basically flat," Richbourg said of sales tax revenue.

Southeast Missouri State University economist Bruce Domazlicky said retail sales remain sluggish. "As far as retail sales go, I think there is a tendency for people to kind of hold back," said Domazlicky, director of the Center for Economic and Business Research. "People are not quite ready to make huge commitments in terms of their purchasing."

Unemployment has remained low in Cape Girardeau County, but many of the retail purchases are made by shoppers who live outside the county, he said. In some of those areas, there have been layoffs, leaving shoppers with less money to spend, Domazlicky said.

But Jackson resident Vicki Abernathy says the economy hasn't slowed down her shopping.

She and her husband recently bought a new Honda.

"It seems like I am buying more," said Abernathy.

But she said she does look more for discounted prices than in the past. "I really do shop the bargains," she said.

mbliss@semissourian.com

335-6611, extension 123