Local tax receipts running ahead of 2019 despite coronavirus

Cape Girardeau sales tax receipts for the first half of 2020 are running slightly ahead of where they were this time last year, despite disruption in many retail businesses this spring during the COVID-19 pandemic.

Meanwhile, the county’s use-tax revenue is running significantly ahead of last year’s pace, indicating strong growth of online commerce and other out-of-state purchases made by county residents and businesses.

Figures released by Cape Girardeau County Treasurer Roger Hudson on Thursday listed June’s sales tax receipts, which primarily reflected retail activity in May, at $660,924, up from last month when the county’s half-cent sales tax generated $551,149.

And although this month’s receipts were 2.9% below the $680,520 received in June 2019, the total for the first six months of this year is 1.4% above the amount generated by the tax in the first six months of last year.

“The numbers, I think, are solid,” Hudson told members of the County Commission as he went over the monthly tax spreadsheets during the commission’s meeting Thursday. He said it is “surprising” the coronavirus outbreak hasn’t had more of an impact on local retail activity since the virus spread into Missouri earlier this spring.

Hudson said he considers the retail sales tax data “good news” and an indication people are continuing to buy consumer goods in the county.

Year to date, the county’s sales tax has totaled $3,828,570. At this point last year, the tax totaled $3,775,017 on its way to a full-year total of $7,376,389, which included about $14,000 in interest from the state.

Meanwhile, Hudson said, the county’s 1% use-tax June receipts totaled almost $184,235, mostly generated in May. That was 94.75% more than the tax’s June 2019 receipts which were $94.598. Last month, the county’s use-tax total was $191,151, 130% more than the $83,047 the county received in use-tax revenue during the same month last year.

Although he said some of the boost in use-tax revenue could be due to “adjustments” by the Missouri Department of Revenue, he said it is likely online shopping has had a significant impact.

So far this year, the county’s use tax has generated $909,565, $244,548 more than the $665,017 raised over the same period of 2019. That’s an increase of 36.77%.

The use tax was approved by county voters in April 2015 and provides funding for upgrades to county facilities, including the new $18 million county courthouse.

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