McAlester News-Capital, McAlester, OK

Local News

March 29, 2008

Mostly up — some down — as sales tax proceeds doled out

By Susan Brittingham

Last month it was the city of Crowder that received zip, nada, nothing from the Oklahoma Tax Commission.

This month, Crowder received $335.58 in use tax disbursement, while two other towns had the distinction of receiving zero dollars.

Alderson didn’t get anything, even though at this time last year the town received $2,160. The town of Calvin didn’t get anything either, a drop of $196.81 from March 2007.

And yet their close neighbor, the town of McAlester, nearly doubled its income this month, receiving $46,328.39. Pittsburg County had a rather whalloping increase, $60,668.79, up from the $13,779.83 in use tax money one year ago.

But what exactly is use tax, and why do some towns get nothing? It is a one-time tax on items bought out of state but used locally. Among other things, that could include taxes collected from magazine and Internet sales, plus construction materials for local expansions.

The OTC also sends out sales tax disbursement checks monthly. The March distribution of sales tax collections primarily represents local tax receipts from January business.

Steve Harrison, a local accountant who is also the former chairman of the city’s Audit and Finance Committee, said the March receipts “hit the city’s bank account on Monday, March 10,” and totaled $1,211,729.82.

This year’s check was higher than the one received in March 2007, which was for $1,157,797.39.

Harrison also noted that the money collected “was based on January sales for smaller businesses and January 16 through February 15 for larger ones, such as Wal-Mart and Lowe’s.”

According to the OTC, $106,415,080 in sales tax collections was returned to 504 cities and towns this month. The use tax disbursement totaled $8,436,673.

Here is a list of use tax disbursements for area towns and cities, compared to March 2007:

• Alderson: $0, down from $2,160.91

• Allen: $613.34, down from 709.31

• Atoka: $11,016.90, up from $4,815.99

• Calvin: $0, down from $196.81

• Canadian: $4,377.38, up from $1,339.54

• Coalgate: $4,766.61, up from $2,943.83

• Crowder: $335.58, up from $114.35

• Eufaula: $5,314.67, up from $5,205.82

• Haileyville: $318.62, up from $240.75

• Hartshorne: $927.43, down from $1,288.77

• Kiowa: $268.19, down from $464.70

• McAlester: $46,328.39, up from $26,777.22

• Quinton: $808.81, up from $603.42

• Savanna: $210.80, up from $116.65

• Stigler: $7,431.50, up from $6,475.60

• Wilburton: $204.84, down from $32,613.25

Use tax disbursements for area counties:

• Atoka County: $13,682.46, up from $6,778.57

• Haskell County: $11,906.47, up from $10,469.65

• Latimer County: $22,666.73, down from $63,578.29

• McIntosh County: $12,795.57, up from $6,511.54

• Pittsburg County: $60,668.79, up from $13,779.83

Contact Susan Brittingham at 421-2029 or e-mail sbrittingham@mcalesternews.com.

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