Cape County treasurer reports 'surprising' tax revenue

Calling it both “surprising” and “unexplainable,” Cape Girardeau County Treasurer Roger Hudson says the county’s sales-tax receipts increased significantly during the most recent accounting period despite Missouri’s “stay-at-home” order and the shuttering of many businesses during the COVID-19 pandemic.

“This may be the most surprising report I’ve ever had,” Hudson said at Thursday’s County Commission meeting as he handed out copies of his monthly tax receipt spreadsheets to the commissioners and the media.

According to Hudson’s report, the county’s sales-tax receipts for the month of May, which reflects taxable retail sales for much of April, totaled $551,148.95. That’s 11.92% more than the $492,451.51 the county collected during the same period last year.

“I think it’s fair to say it mostly reflects April economic activity,” Hudson said of the latest sales-tax report, but cautioned some of it could be the result of sales taxes collected in March and possibly earlier.

Last month, a few weeks after businesses started closing due to the coronavirus outbreak, the county treasurer reported a 6.15% dip in sales-tax receipts compared to the same month in 2019.

“I was expecting the sales tax to be down 6 or 7% again,” Hudson said, “but Cape Girardeau County is unique and we’re blessed to live here. We have a diverse and a thriving economy with the hospitals, Procter & Gamble and a lot of small businesses. Small-business people don’t quit working just because it (the economy) feels bad.”

For the year to date, the county’s sale tax receipts are running nearly 2.4% ahead of last year’s pace. So far this year, the county has received $3,167,645.75 in sales tax compared to $3,094,496.80 by this point in 2019.

While the most recent sales-tax receipts increased almost 12%, use-tax revenue jumped a whopping 130%, from $83,046.75 received in May of last year to $191,150.93 this month, more than twice what the tax generated in April. The use tax is collected on merchandise and other items purchased outside of Missouri and then brought or shipped into the state, such as online purchases.

For the year to date, use-tax receipts are running more than 27% ahead of last year. In the first five reporting periods of 2020, the county’s use tax has generated $725,329.88 compared to $570,418.21 collected over the same period in 2019.

Hudson said it is possible both the use tax and sales tax could have been under reported last month by the Missouri Department of Revenue, which, he said, may have shortened its reporting cycle last month. That, in turn, may have resulted in a slightly longer cycle this month.

Either way, Hudson said, “it’s good but unexplainable news.”

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