Sullivan County Sales Tax Revenue Shows Continued Growth | Business
BLOUNTVILLE – Countywide, sales tax revenue for March increased nearly 8.2% from March 2021, according to a report from the Sullivan County Department of Finance.
That’s $412,000 of growth for the month, year over year.
The March revenue report covers the eight months since the start of the 2021-22 fiscal year. The countywide eight-month total of $47.57 million shows a 12.8% increase over the same period last year.
The countywide monthly total for March was nearly $5.44 million, down from $5.02 million in March 2021.
Kingsport continues to produce the bulk of sales tax generated in the county.
The $5.44 million, per collection point: Kingsport, $3.17 million; Bristol, $1.3 million; non-urban parts of the county, $849,000; Johnson City, $69,000; and Bluff City, $52,000.
Growth in March by location, year-over-year: Kingsport, $290,000; Bristol, $53,000; non-urban parts of the county, -$92,000; Town of Bluff, -$3,500; and Johnson City, -$20,000.
Half of the money goes to local school systems:
Sullivan County schools’ share is $10.6 million, up $1.09 million from the same period a year ago. In developing the county’s budget for this fiscal year, school system officials expressed concern over the county commission’s decision to calculate school system revenue by changing the stream to include more sales tax and less property tax.
Proponents of the system objected to the growth in sales tax revenue that occurred from July 2020 to June 2021. They said that if this growth turned out to be artificial, the system would run into a deficit.
Kingsport City Schools’ share is $8.42 million, up $1.13 million from last year.
Bristol, Tennessee, City schools’ share is $4.66 million, up $478,000 from last year.
Johnson City Schools’ share is $89,000, down $8,000.
Each locality’s non-school share for the eight-month period: Sullivan County, $3.83 million, up $483,000; Kingsport, $13.45 million, up $1.5 million; Bristol, $5.94 million, up $724,000; Bluff City, $238,000, up $25,000; Johnson City, $316,000, down $30,000.
Sales Tax 101
Sales tax revenue returns to localities two months after it is collected by local merchants.
Sales tax collections from January, for example, flow back as revenue to Sullivan County, Kingsport, Bristol, Bluff City and Johnson City — as well as the county’s three school systems — in March.
Sales tax revenue is generated when money is spent on goods and services in businesses in the county and its cities. Locally, cities and counties fund most of their services through a combination of property and sales taxes.
When a consumer pays sales tax locally, that money is sent to the state, which takes a small portion and redistributes it to the county and its cities based on the collection site.
Local option sales tax revenue is split 50/50 – half going to county school systems and the other half going to the local government where the collection business is located.
Every local option sales tax dollar collected in Kingsport, for example, generates 50 cents for the county’s three school systems (the money is split based on average daily attendance) and 50 cents for city coffers. .
Comments are closed.