May sales tax revenue fell sharply in Sullivan | Appalachian Highlands

BLOUNTVILLE — Across the county, sales tax revenue for the month of May fell from previous months this fiscal year. But the total increase of 1.11% still reflects growth over last year.

And the county-wide year-to-date total for the 10-month period shows growth of $6.14 million, or 11.52%, from the same 10 months a year ago.

The numbers come from the Sullivan County Finance Office’s Monthly Sales Tax Revenue Report for the month of May. It covers the 10 months since the start of the 2021-2022 financial year.

The countywide monthly total for May was nearly $6.5 million, a growth of $71,000 from $6.425 million in May 2021.

Kingsport businesses continue to generate the bulk of sales tax generated in the county. However, businesses outside the cities posted the strongest May revenue growth – and revenue generated in Bristol and Bluff City fell during the month.

The $6.5 million, per collection point: Kingsport, $3.65 million; Bristol, $1.65 million; non-municipal parts of the county, $1.03 million; Johnson City, $94,000; and Bluff City, $66,000.

May growth by location, year-over-year: Kingsport, $40,382; Bristol, -$33,483; non-urban parts of the county, $106,120; Bluff City, -$23,638; and Johnson City, -$2,600.

Half of the money goes to local school systems:

Sullivan County Schools’ share for the nine-month period is $13.2 million, up $1.18 million from the same period a year ago. While developing the county’s budget for this fiscal year, education officials expressed concern over the county commission’s decision to calculate school system revenue by changing the feed to include more sales tax. and less property tax.

Proponents of the system have 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.

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Kingsport City Schools’ share is $10.55 million, up $1.34 million from last year.

Bristol, Tennessee, City Schools’ share is $5.85 million, up $559,000 from last year.

Johnson City Schools’ share is $113,000, down $10,000.

Each locality’s nonschool share for the 10-month period: Sullivan County, $4.75 million, up $559,000; Kingsport, $16.86 million, up $1.76 million; Bristol, $7.41 million, up $765,000; Bluff City, $300,000, up $15,500; Johnson City, $394,000, down $23,500.

Sales Tax 101

Sales tax revenue returns to localities two months after it is collected by local merchants.

March sales tax collections, 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 May.

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. .

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