The City of Springfield’s May tax revenue was down double digits from the previous year.
The revenue check to the city for May was $3,028,591, compared to $3.425,775 in May 2018, a difference of just over $397,000.
“It is typical to see sales tax receipts from the State fluctuate from month-to-month,” city manager Jason Gage told OI. “Many factors, including the timing of tax collections from retailers, can affect what the City receives on a monthly basis. Certainly, a one-month reduction of 11.6% is significant and gets our attention. To date, the City’s monthly sales tax receipts have been pretty stable and a little ahead of budget projections. A key factor for us is to not experience a negative growth trend over the next three or four months. If that should occur, some financial adjustments might be necessary. In the meantime, the City will continue to watch our monthly sales tax collections very carefully.”
Despite the dip, the city’s sales tax revenue for the fiscal year to date is up around 2%, about $851,000, over the same time period last year.
Compared to the city budget, revenue is up 1% this month and 2% to date.
The May check is for sales processed in April by the state based on March sales. The city gets approximately 56 percent of its overall revenue from sales and use tax.