JUST IN: Sales tax returns still in freefall

Local News

April 27, 2009

By Kandra Wells The McAlester News-Capital Mon Apr 27, 2009, 03:08 PM CDT

Sales tax returns continue to decline for many area towns, although McAlester’s .6 percent drop from last year is mostly attributed to a sales tax that expired.

McAlester returns for April, as reported by the Oklahoma Tax Commission Friday, were $1.2 million, a $6,997 decrease from the same month last year. But the figures are based on two different tax rates: 3.5 percent this year, as compared with 3.75 percent last year. In 2008, the city’s tax rate included a .25 percent tax for the Wellness Center that has since expired.

“The total dollar amount of sales reported in McAlester during April of $34,289,000 is about 6.5 percent above last year’s sales of $32,190,000,” Mayor Kevin Priddle said Monday. “The actual dollars of city tax collected was below last year because of a difference of .25 percent in the tax rate.”

Statewide, tax collections distributed this month to cities dropped $2.25 million from last April. Among 20 cities in Pittsburg and neighboring counties, collections dropped in 12 communities as compared with the same time last year.

Additionally, collections for Latimer and McIntosh counties fell, while Pittsburg County’s rose. Pittsburg County’s increase also reflects a higher sales tax rate than last year; it was .75 percent in 2008 and is 1 percent this year.

“There’s no doubt the national economy is continuing to deteriorate in multiple sectors,” Mayor Priddle said Monday afternoon. “Although we have seen some ‘softening’ in certain industries recently, we still have strong sales compared to many communities.”

The McAlester returns makes for the fifth straight decline in collections. April’s revenue of $1,200,142 is $31,429 less than March’s disbursement. But the number does not surprise Priddle. A banker, the mayor predicted last month that city coffers would continue to see declining revenue from sales tax collections through the end of the fiscal year.

He remains optimistic, though, that McAlester is weathering the nation’s recession well.

“I think we should be very pleased with these numbers given the current economic situation,” he said.

Contact Kandra Wells at kwells@mcalesternews.com.

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