Kingsport Times News Wednesday, July 30, 2014

Business & Technology

Sullivan sales tax revenues up 5.49% over prior year

August 1st, 2012 2:54 am by J. H. Osborne

BLOUNTVILLE -- Monthly sales tax collections across Sullivan County, and the subsequent revenue to local school systems and governments, were down in May compared to the same month one year prior, according to a report prepared by the county's budget office.


May collections came back to the county and its cities as revenue this month.


The countywide total of just over $3.85 million showed a decrease of about $14,000 compared to the same month last year, according to the report.


Sales tax revenues were up, overall, in nine of the 12 months covered by the report -- with a cumulative annual growth of 5.49 percent, or about $2.45 million, over the prior year.


Dollar-wise, most of that growth -- about $1.5 million -- came from businesses inside the city of Kingsport.


Sales tax revenues come back to the localities two months after they are collected by local merchants. May sales tax collections, for example, just came back as revenue to Sullivan County, Kingsport, Bristol, Bluff City and Johnson City -- as well as to the three school systems in the county.


A year ago, the 12-month total sales tax revenue for all localities in Sullivan County was about $44.7 million. This year that total is about $47.16 million.


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


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.


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.


From the budget office's report:


•The city of Kingsport's non-school share of taxes for the year totaled $15.05 million -- up $748,000 from last year.


•Kingsport City Schools' share for the year totaled more than $6.88 million, up about $573,000 compared to last year.


•The city of Bristol's non-school share for the year totaled $4.87 million, up about $386,000 compared to last year.


•Bristol City Schools' share totaled about $4.35 million, up about $270,000 compared to last year.


•Sullivan County's portion for sales taxes generated outside the cities totaled $3.4 million, up $59,000 compared to a year ago.


•Sullivan County Schools' share totaled $12.34 million -- up about $385,000 compared to last year.


•Bluff City's share totaled about $156,000, up about $14,000 compared to last year.

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