SALES TAX RECEIPTS PLUMMET; BOTH CITY, COUNTY REPORT DECLINES

Sales tax checks for both the city of Cape Girardeau and Cape Girardeau County were sharply down this month over May of 1991.

Cape County's May check of $105,154.77 was its lowest check in May since 1986; the city's May check of $142,957.60 was its lowest check for the month since 1989.

Both Cape Girardeau Assistant City Manager Alvin Stoverink and County Presiding Commissioner Gene Huckstep said they were not overly concerned with the drop for the month. They suggested it might be nothing more than a delay in processing tax collections.

The city's one cent and the county's half cent sales tax for general revenue, is collected by the Missouri Department of Revenue and disbursed on a monthly basis.

"Month to month comparisons are really meaningless in analyzing sales tax income," said Stoverink. "Most likely there has been some significant volume retailers who have filed late and it may not show up until June."

Stoverink said nationally there was a reported downturn in retail sales during March and that could be reflected in the May check.

Huckstep called the May receipts "very disturbing," but like Stoverink was optimistic that things would look up in June.

"With the Department of Revenue it is hard to pinpoint exactly what their cutoff date is," said Huckstep. "I would rather withhold my judgment until I get the next check."

Huckstep said the June check will not only be big because it reflects businesses that pay quarterly sales taxes, but it could also reflect the opening of the Wal Mart Super Center in Cape Girardeau earlier this year.

For Cape County, the May check is down from the $131,852.98 collected in the month for 1991 and only down slightly from the $109,000 amounts taken in for 1990 and 1989.

Overall, for the first five months of the year, Cape County has had total receipts of $1,178,221.58, which is running 1.5 percent ahead of the same time last year. Before May's check, Cape County's receipts were running 4.27 percent ahead of 1991.

In 1991, Cape County collected just over $3 million in sales tax revenue, which was up less than 1 percent over 1990.

For the city of Cape Girardeau, its May check for this year was well under the $192,718.61 collected last year.

Through the first five months of 1992, Cape Girardeau City Clerk Mary Thompson reported that checks have totaled $1,847,231.08, which is just about $25,000 ahead of the same time last year.

In calendar year 1991, the city had general revenue sales tax receipts of $4,766,588.08. That figure was down slightly from 1990.

Stoverink pointed out that the city uses a fiscal year for comparing sales tax receipts. The present year ends June 30. The sales tax check received in early July, will be applied to the present year's budget.

With two checks remaining for this fiscal year, Stoverink said the city is about nearly half a percent behind the same period last year. Prior to the May check, the city was running almost 1 percent ahead of last year.

The Fiscal 1991-92 budget for the city is based on a growth of 2 percent. Stoverink said during the next two months sales tax revenues need to make up a shortfall of $125,000 to meet the budgeted revenue.

The City Council has not yet decided whether to budget a sales tax increase for Fiscal Year 1992-93. That decision will probably be made later this month.

Huckstep said Cape County's budget for 1992 does not include any sales tax growth. The county's budget year is on a calendar year.

"While we did not budget an increase, the fact remains that we are getting hit on increases in things like health insurance and workers compensation insurance," said Huckstep. "Our expenses are certainly not stable."

Once the June check is received, Huckstep said that should give the county commission a clear indication of what receipts for the year will be. With revenues flat and expenses climbing, Huckstep said the commission will have to continue monitoring all expenditures carefully.