Madison's 2010 fiscal year sales tax numbers are down
Posted on Monday, August 16, 2010
By CHUCK CLEMENT, Staff Reporter
The South Dakota Department of Revenue has reported that the municipal tax due from the city of Madison fell by 9 percent for fiscal year 2010 when compared to fiscal year 2009.
State officials released numbers this summer that show Madison businesses reported $2.38 million in tax receipts for fiscal year 2010, as compared to $2.62 million during 2009. The decrease between the two fiscal years amounts to about $240,000.
Many South Dakota cities and towns saw sales-tax collection changes, both positive and negative, during the last year. Howard had a decrease of about 31 percent in which its tax collections fell from $430,000 in 2009 to $298,000 in 2010. Flandreau experienced an increase of about 2 percent when its totals rose from $515,000 in 2009 to $525,000 in 2010.
Among the larger communities, Brookings had a 4.3 percent decrease from $10.8 million to $10.3 million, and Sioux Falls had a 1.3 percent decrease of $91.6 million to $90.5 million.
The 2010 fiscal year on which the S.D. Department of Revenue and Regulation based its report started in July 2009 and ended in June 2010.
Since the revenue department's fiscal year doesn't match the city's budget year which runs from January to December, Madison officials can hold onto some optimism that the last half of 2010 will improve. For its financial planning, Mayor Gene Hexom said that Madison won't know the complete numbers for calendar year 2010 until next February.
Hexom pointed out that sales-tax receipts have traditionally increased in volume during the last six months of the year because purchases of goods and services also increase. Sales-tax revenue during the last half of the year can include families buying back-to-school items, older students returning to college, and adults getting their homes and vehicles ready for winter.
The year's end will also bring what is typically a major contributor to sales-tax revenue with purchases for Christmas and other winter holidays.
In comparing Madison's sales-tax receipts reported for the month of May 2010 as compared to May 2009, the state revenue department reported an increase of about 3.6 percent, from $206,000 in 2009 to $213,000 in 2010. The May receipts for South Dakota communities were among the reports filed with the state during June.
Similar to the end-of-the-year figures, positive and negative reports for May sales tax receipts varied among cities and towns.
Howard had a 2.2 percent decrease from about $29,700 in May 2009 to $29,000 in May 2010. Flandreau witnessed a decrease calculated at 6 percent from $47,300 in 2009 to $44,400 in 2010.
Brookings benefited from a positive change of 4 percent with receipts climbing from $843,000 in May 2009 to $877,000 in May 2010. For the city of Sioux Falls, the comparison between May 2009 and May 2010 showed almost steady receipt totals with a small drop of 0.3 percent from $7.54 million to $7.52 million.
©Madison Daily Leader 2010