Kingsport Times News Monday, October 20, 2014

Business & Technology

Sullivan sales tax revenues up slightly

February 14th, 2009 12:00 am by J. H. Osborne






BLOUNTVILLE — On the whole, sales tax revenues were up a little this month over February 2008.


Revenues that roll from the state back to local governments in February are typically from sales tax collections in December.


In February 2008, the state sent $4.64 million back to the county and its cities. This month the figure was $4.735 million — an increase over last year of just under $95,000.


Year to date, sales tax revenues — countywide — are up about $732,000, or 2.67 percent, over the same period a year ago, according to a report prepared by the county’s budget office.


Retail sales in the Model City remain the source of most of the year-to-date sales tax revenue growth countywide this year.


Since the fiscal year began in July, the state has sent back more than $17.76 million in sales tax revenues for sales tax collections in Kingsport — up more than $851,000 over last year at this point (more than accounting for the year-to-date countywide growth of $732,000).


For February, sales tax revenues for the Kingsport portion of the county were up about $23,000, compared to the same month last year.


Sales tax revenues for non-incorporated portions of the county were up this month by about $55,000 compared to a year ago.


And sales tax revenue for collections inside Bristol also were up this month, compared to the same month last year.


Bluff City and the portion of Johnson City in Sullivan County were down this month, compared to the same monthly period last year.


Sales tax revenues are generated when money is spent on goods and services at businesses throughout the county and its cities.


The money is used by local governments, largely, to support school systems.


When a consumer pays sales tax locally, it is sent to the state, which redistributes it back to the county and its cities based on collection site.


Sales tax revenue is typically distributed back to localities two months after being collected. Taxes collected in December, for example, are distributed back in February.


Local option sales tax revenues are split 50/50 — with half going to school systems in the county and the other half going to the local government where the collecting business is located.


Each $1 of local option sales taxes collected in Kingsport, for example, generates 50 cents for the county’s three school systems (the money is split based on average daily attendance) and 50 cents for city coffers.


The county budgets most of its non-school sales tax revenue to the Sullivan County Highway Department.


From the budget office’s report:


• Sales tax revenues this month generated by businesses in Kingsport two months ago totaled about $3.175 million — an increase from $3.152 million last February.


• Sales tax revenues received by local governments in Sullivan County from August through this month totaled about $28.08 million. That’s up from about $27.35 million for the same seven-month period last year.


• For the same period last year, the state sent about $16.9 million total back for sales taxes collected within the city of Kingsport — with half, or about $8.45 million — going to the city of Kingsport’s coffers and the other half being split among local school systems.


• This year, the Kingsport total for the period is more than $17.75 million with half — roughly $8.87 million — going to city coffers, and the other half going to the school systems.


• Kingsport’s non-school share, since fiscal year 2008 began on July 1, shows an increase of $425, 612 compared to last year at this point.


• The Sullivan County school system’s year-to-date share is about $7.72 million, up about $141,000 compared to this point last year.


• The Bristol City Schools system’s year-to-date share is about $2.52 million, up about $111,000 compared to this point last year.


• The Kingsport City Schools system’s year-to-date share is about $3.8 million, up about $114,000 compared to this point last year.


• The city of Bristol’s year-to-date non-school share is about $3.08 million, down about $33,000 compared to this point last year.


• Bluff City’s year-to-date share is about $122,000, down about $75,000 compared to this point last year.


 


 

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