Lamar City Sales Tax Posts Another Drop

 

The Lamar City Sales Tax has posted monthly declines since the start of 2014 and March results, collected in April, continue the disconcerting trend.  The 3% City Sales Tax was off 7.46% compared to last year’s monthly posting, while Use Tax was off 37.37% and Other Collections was down 17.24%.  Between 2013 and this year, that’s a drop for March of $33,011.56.

Year to Date figures show a similar decrease with City Sales Tax off 4.69% for a drop of $50,141.30; Use Tax is off 35.44% for the year for a drop of $43,015.04 and Other Collections was down 9.18% for a decline of $1,350.69.  The combined Year to Date amount is $1,205,468.88 collected in 2013 to this year’s figure of $1,110,961.86, a difference of $94,507.03.

Each of the 12 Retail Trade categories showed a decrease in tax revenue, comparing 2013 to 2014, year to date.

.                                                 2012                      2013                    2014

Auto Parts                           47,937                   44,910                   42,984
Building Materials            32,399                   31,814                    28,411
Clothing                               11,778                    12,191                     11,375
C-Stores/Gas                     32,816                   32,265                     31,921
Department Stores         380,085               386,120                  353,272
Furniture                             10,636                  10,123                       9,414
Grocery Stores                   92,008                 90,280                   82,838
Motels                                  40,042                  42,827                    35,562
Liquor/Bars                        34,699                  35,138                     30,551
Manufacturing                      6,080                 23,050                      2,249
Restaurants                        109,261                110,712                  103,285
Other Retail                          16,977                 19,104                     18,977

The decline was noted by the Lamar City Council and City Administrator, John Sutherland, during the Monday night council session.  Sutherland said that he foresees no changes to the 2014 budget in light of the decline.  “We’re still very healthy, and you need to remember that the sales tax, though important, is only one of the city’s revenue streams,” he explained.  Even the fact that grocery sales have dropped off by almost $8,000 recently may reflect a drop in use or availability of food stamps which are issued on a federal level in Prowers County.  A thought was expressed that the recent closing of ALCO in Lamar could have contributed to a downturn in tax receipts.  This reporter contacted PCDI Executive Director, Lance Benninghoff on that specific issue last month, and Benninghoff said he believed the closing would not have much overall impact, as those lost sales would be made up at other local stores in the Lamar area.

By Russ Baldwin