BLOUNTVILLE — Countywide, sales tax revenues for August were up 8.9% compared to August 2020, according to a report from the Sullivan County Finance Department.
That’s more than $479,000 in growth, year over year, and it begins the county’s 2021-2022 fiscal year on a positive note. That growth includes revenue to the county’s cities, all of which saw increases, except for Johnson City.
The countywide total for August was nearly $5.87 million. That 8.9% growth is an increase over the 7.63% in growth recorded in August 2020.
Where did revenue come from?
Kingsport continues to produce the largest chunk of sales taxes generated within the county.
The $5.87 million, by collection point: Kingsport, $3.29 million; Bristol, $1.47 million; non-city portions of the county, $969,000; Johnson City, $81,000; and Bluff City, nearly $61,000.
August growth by location, year over year: Kingsport, $205,000; non-city portions of the county, $182,000; Bristol, $130,000; Bluff City, $5,794; and Johnson City, -$43,000.
Where does revenue go?
Half of the money goes to local school systems:
Sullivan County Schools’ share is $1.31 million, up $93,000 compared to August 2020.
Kingsport City Schools’ share is $1.04 million, up $108,000 compared to last year.
The Bristol, Tennessee, City Schools’ share is $575,000, up $41,000 compared to last year.
Johnson City Schools’ share is $11,000, down $1,500 compared to last year.
The non-school share for each locality for the month: Sullivan County, $484,000, up $91,000; Kingsport, $1.64 million, up $102,000; Bristol, $735,000, up $65,000; Bluff City, $30,000, up $2,900; Johnson City, $40,500, down $21,300.
Sales Taxes 101
Sales tax revenues come back to the localities two months after they are collected by local merchants.
June sales tax collections, for example, return as revenue to Sullivan County, Kingsport, Bristol, Bluff City and Johnson City — as well as to the three school systems in the county — in August.
Sales tax revenues are generated when money is spent on goods and services at businesses throughout the county and its cities.
Locally, cities and counties fund most of their services through a combination of property and sales taxes.
When a consumer pays sales tax locally, that money is sent to the state, which takes a small cut and redistributes it to the county and its cities based on the 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.
Every dollar 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.