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Report shows large sales tax increase
POULSBO No Wal-Mart, no The Home Depot, no problem at least according to the citys March sales tax report.
Budget analyst Deb Booher told the city councils finance/administration committee that last months report represents an historic first for the city from a financial standpoint.
Its the first time weve actually been over $200,000 and were doing very well, Booher said.
The revenues were generated in January, which traditionally ranks as the 11th highest month for sales taxes, she explained.
Were up 36.29 percent, or $54,000, over the same period last year, she said, noting that the revenues are still in line with the citys projections for the 2006 budget year.
The largest increase was in retail trade, which was up $31,000, and the next greatest increase was in the construction sector, Booher said.
Even though Wal-Mart and The Home Depot opened at the end of January, the construction and inventory of both stores contributed to the citys sales tax revenues, she explained.
Its next month when were finally going to start seeing the full impact of them, said Councilman Jim Henry.
The city is waiting until both stores have been open for a full year before determining anticipated revenue projections, Finance Director Nanci Lien told the committee.
Retailers expect an initial spike in business during the first year of operations and scale down their expectations after that, Lien explained.
However, the city still expects construction revenues in the area to remain high because of the strip mall and medical centers being built, Booher said.
The April sales tax report, which will include the first full month of both major retailers impact, is expected at the April 5 finance/administration committee meeting.