SALES TAX REVENUES AID CAPE GIRARDEAU CITIZENS

Cape Girardeau is among 83 cities in Missouri with sales tax revenue generating more than $100 per capita. As a retail hub, our city continues to grow and prosper from thousands of out-of-town visitors who frequent our shops and restaurants each day.

A recent statewide survey revealed that most of the sales tax revenue comes from retail sales, due to a growing number of exemptions on other sales.

The figures provide a good indication of trade centers across the state. Growing sales tax revenues locally reflect a healthy economy.

The city of Cape Girardeau received more than $4.8 million during the 1990 calendar year from its 1-cent sales tax. That equaled about $139.51 of sales tax per each of Cape Girardeau's 34,438 residents.

Sales tax figures in dearly to Cape Girardeau's budget. The 1-cent sales tax generates nearly 50 percent of the city's $9.7 million of general fund revenue.

Sales tax revenue also plays a critical role in county finances. Cape Girardeau County's half-cent sales tax generates about $3 million annually. That represents a hefty chuck of the county's $5.4 million budget. The sales tax allows the county to maintain financial stability while charging no property taxes.

It's easy to see why city and county officials become worried when sales tax revenues fall off during an economic downturn.

More and more cities are depending on sales tax revenues for their budgets. Although considered a recessive tax by many experts, sales tax has become the tax of choice for many people. That's because rich or poor, everyone pays the same percent of tax. And it's a tax that both property owners and renters pay.

The great thing about a sales tax is that a large portion may be paid by out-of-town visitors - especially in retail hubs. These are people who pay the tax, but don't expect such expensive services as good schools, fire protection and trash pickup.

Of course, the added traffic to town doesn't come without some expenses. More people put a greater burden on city streets, parks and such services as the police department.

Regardless of that fact, Cape Girardeau remains in an enviable position. The sales tax revenue more than makes up for any increased demand on services. Cape Girardeau remains a commercial center for the entire region, and both the city and county have benefited from that fact.

City and county officials are no doubt glad to see a number of new businesses and restaurants under construction. More businesses will draw more people to town, who will spend more dollars and pay more sales tax. Increased sales tax revenue may mean the city and county won't have to turn to its residents to pay higher taxes.

Cape Girardeau's role as a retail, medical and education center as well as its location along Interstate 55 adds up to big bucks for city coffers. Instead of grumbling about the crowds of out-of-town visitors, we should give them the right of way and encourage them to spend away.