Cape County tax receipts indicate people still spending money despite coronavirus

The COVID-19 pandemic has apparently not deterred people from spending money in Cape Girardeau County, according to the county’s latest sales tax receipts, which are running slightly ahead of last year’s pace.

Meanwhile, the county’s use-tax revenue, generated by online and out-of-state taxable purchases, has increased substantially for the third straight month.

Data released Tuesday by Cape Girardeau County Treasurer Roger Hudson shows the county’s half-cent sales tax generated $676,198.33 during the most recent collection period, which spanned from approximately late May through late June. That’s about $4,000 more than the tax raised during the same period last year.

At this point in 2020, the county’s tax on retail sales has raised $4,504,768.73, or 1.3% more than the $4,447.041.49 the county received in sale tax revenue during the first seven reporting periods of 2019.

The sales tax revenue received by the county this week was on the basis of taxable retail sales that amounted to $135,239,666 during the most recent collection period.

Because Cape Girardeau County is a regional hub of retail activity, economists say its likely between 60% and 70% of all retail purchases in the county are made by consumers who live elsewhere.

The county’s 1% tax on internet sales and out-of-state purchases, referred to as the county’s use tax, raised $122,820.04 on taxable purchases valued at $12,282.004 between late May and late June. That’s up 79.4% over the same period in 2019. This month’s use-tax receipts follows a use-tax payment in May that was 130% more than what was received during the same month in 2019 and a June receipt that was 94.75% above last June’s use-tax revenue.

So far this year, the use tax has generated $1,032,384.63, or about 41% more than it generated by this time last year.

The county’s use-tax revenue began accelerating in late March when the coronavirus outbreak began spreading in Missouri, indicating a substantial increase in online purchases. The trend continued during the state’s “stay-at-home” directive and the temporary closure of many retail businesses, which encouraged consumers to make online purchases.

“There’s no doubt about it,” Hudson said.

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