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Sales tax report shows increase in revenue

By Vicky O. Misa | Vicky.misa@news-star.com | (405) 214-3962 | Twitter: @Vicky_NewsStar
The Shawnee News-Star

The Shawnee city sales tax collection report for August is marking another positive month of increased revenue after the recent period of uncertainty.

Direct effects of the COVID-19 shutdown appear to have ended as recent sales tax collections in Shawnee continue to show an increase.

Pottawatomie County received its first positive case of COVID-19 the last week of March, which spurred the start of added restrictions ordered by Gov. Kevin Stitt.

Area residents spent significant time avoiding public spaces as a direct result of a shelter-at-home directive from leaders starting mid-March, during April and into May.

As a result, revenue was down while all non-essential businesses were closed until mid-May.

Most local shops have opened back up to some degree over the past couple months; that increased activity is showing a bounce-back in revenue.

Ashley Neel, finance director and city treasurer, reports this August's sales tax deposit was $2,069,378.81, including interest of $2,018.86, to be allocated as follows:

• General Fund — $1,182,502.17

• 2018 Capital Improvements Fund — $295,625.54

• Capital Improvements Fund — $229,109.81

• Street Improvements Fund — $258,672.35

• Economic Development Fund — $29,562.56

• Police Sales Tax Fund — $36,953.19

• Fire Sales Tax Fund — $36,953.19

Sales and use tax collections totaled $2,270,036.04 for August 2020.

According to Neel's report, August 2019 sales tax receipts came in at $1,807,035 — $262,344 below this year's collections for the month.

“It should be noted the sales tax estimate for FY 20-21 was based on a 12.5 percent reduction compared to the prior year budget. ,” Neel said.

For the year, sales tax collections are up $869,410, or 26.56 percent over the projected budget year-to-date, she said.

“Use tax collections are up approximately $18,712, or 4.61 percent, over the projected budget year-to-date,” she said.