Sales tax collections remain strong for Senatobia and Coldwater two months into the new fiscal year.
According to economic forecasters, the upward trend in local revenue has shown consistency the last several months mainly because consumers are shopping online more frequently during the COVID-19 pandemic.
Senatobia sales tax collections are up 4.7% for the 2022 fiscal year, which began in July, after a 6.1% boost in August revenue and a 3.3% increase the previous month. The city collected $231,188 in August, compared to $217,278 in August 2020.
Statewide sales tax collections are based on a three-month cycle. Checks disbursed in August by the Mississippi Department of Revenue were from sales made in June and taxes paid to the state in July. Sales tax is collected on local purchases and submitted monthly to MDOR before it is paid to cities. Sales tax receipts paid to cities are a direct result of money spent by consumers in those municipalities.
Coldwater has also seen a consistent boost in its economy the last several months. The town collected $26,895 in August 2021, compared to $22,278 in August 2020 for an increase of 17.2%. In the first two months of the current fiscal year, Coldwater is ahead 15.7%, or $8,324, compared to the combined numbers of July and August 2020.
Statewide sales tax diversions divided among Mississippi municipalities in August 2021 totaled $45,317,101, compared to $40,016,811 in August 2020 for an increase of 11.7%.