County, Cape, Jackson see rises in sales tax revenue so far in 2011

Sales tax revenue slowly but steadily increased in Cape Girardeau County during the first 10 months of this year.

In the city of Cape Girardeau, general sales tax collections are up 3.2 percent from January through October, compared to the same period last year. Cape Girardeau County's general sales tax revenue is up 2.98 percent and the city of Jackson has collected 0.67 percent more general sales taxes during the same period.

"Our whole area has really been pretty well blessed as far as our sales tax revenue," Jackson Mayor Barbara Lohr said. "Really we have not experienced much down revenue. If we did have a quarter where things were down a little, it was back up again the next quarter so that totals for the year have been pretty much consistent."

Due in part to its new fire protection tax enacted in April, Jackson's total tax revenue collected -- including fire, transportation and general sales taxes -- in the first 10 months of this year increased 8.6 percent overall. Jackson has collected a total of $2,718,082 so far in sales taxes in calendar year 2011.

Cape Girardeau's general revenue sales taxes total $7,747,787 while Cape Girardeau County's general revenue sales tax collections total $5,460,026 through October.

While Cape Girardeau Chamber of Commerce executive director John Mehner is glad to see overall sales tax collections on the rise, he said some local retailers are still struggling.

"It still depends a little on which part of the retail sector you are in. Many places are doing extremely well, and several others are not doing as well. The fact that the aggregate total is up can't be applied across the board," Mehner said.

Restaurants, hotels and electronics stores are all seeing revenue increases, while not all local clothing retailers are, he said. Women's clothing store Talbots, for example, will close its doors in January as part of a companywide plan to close 80 stores across the country.

Revenue from motor vehicle sales increased 8.32 percent and revenue from utility, telephone and cellular companies increased 7.22 percent in the city of Cape Girardeau's fiscal year ending in June, according to Cape Girardeau finance director John Richbourg.

Consumer spending accounts for about 70 percent of the total spending in the U.S. economy, according to the U.S. Commerce Department, and is closely watched as a sign of economic growth.

County Treasurer Roger Hudson said it appears spending is now at prerecession levels, according to the county's sales tax collections. He's also hopeful that holiday sales in November and December will boost year-end sales tax totals.

Over the past four years, December sales tax collections have shown a decrease from the previous year, with the exception of last year, he said.

"I think they're just going all out to try to do everything they can to try to increase business in their stores and make this a good year both for the consumers and themselves," Lohr said.

The National Retail Federation is projecting 2011 holiday sales to rise 2.8 percent from 2010.

Local officials still don't know the amount of goods Cape Girardeau County residents are purchasing online, Mehner said.

"It's an issue for us, it's an issue for the state of Missouri, and it's an issue for our bricks-and-mortar retailers," Mehner said. "We have no idea what our sales tax could be up to if we knew what was being bought here online."

The Main Street Fairness Act proposed in the Missouri House of Representatives earlier this year would have "leveled the playing field for Missouri businesses" by allowing Missouri to collect taxes on out-of-state Internet sales.

Known as House Bill 278, it didn't gain much traction this session, but Mehner said it will be introduced again next year.

"There are 22 states now participating in sales tax collection for online purchases based on the point of purchase," he said.

mmiller@semissourian.com

388-3646

Pertinent address:

Cape Girardeau County, MO