Sales tax revenue remains steady, use tax from online shopping increases

By Laura Schiermeier, Staff Writer
Posted 8/13/20

VIENNA — While the federal government is bleeding money and state revenues are down with cuts being made to many state government areas, including schools because of the Covid-19 coronavirus …

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Sales tax revenue remains steady, use tax from online shopping increases

Posted

VIENNA — While the federal government is bleeding money and state revenues are down with cuts being made to many state government areas, including schools because of the Covid-19 coronavirus and the shutdown of the state, there is one area where revenue has increased—sales taxes.

At the Maries County Commission meeting last Thursday, Treasurer Rhonda Slone gave the commissioners sales tax, use tax, and fuel tax numbers. Slone reported in July one of the county’s three half-cent sales taxes brought in $27,188.56. This compares to last year when the same sales tax generated revenue of $27,083.31 in a non-coronavirus time. June county sales tax revenue for one of the county’s sales taxes was $25,531.89, compared to $24,352.51 in 2019.

When the shutdown of the state began, it was assumed with people staying at home and with so many businesses closed, sales tax revenues would fall. There were some who suggested since people had to stay close to home, they would shop locally. It appears that is what they did as revenues in Maries County are trending about the same as before the coronavirus disrupted everyone’s life and even with a small revenue increase of one percent. People are staying closer to home because of the coronavirus and fears of catching it when they shop in larger communities, so they are shopping locally, in their home towns and at local businesses.

In Missouri at the end of June, the state reported sales tax collections were up 1.8 percent for the fiscal year that ended in June compared to the previous year. Collections went from $2.24 billion in fiscal 2019 to $2.28 billion in fiscal 2020. Collections were up nearly 11 percent in May when the statewide stay-at-home order restricting business ended.

Slone also reported on use tax revenues, which also have increased substantially. These revenues are from online purchases made by Maries County residents and they certainly did buy online as for the first seven months of 2020, the county’s use tax revenues increased 56 percent over the same period of time in 2019.

In July 2019 Maries County received $5,559 in use tax revenue, compared to July 2020 when $14,629 was received.

In June the county received $62,142 in use tax, compared to $6,421 in 2019.

In January and February 2020, use tax numbers were less than 2019 numbers, but took a big jump in March to $30,523, which is when the state shutdown because of the virus.

In April use tax revenues were $7,276 and in May they were $12,588.

The county’s road districts rely heavily on fuel tax revenue, which is a portion of the gasoline tax paid on gallons purchased in the state. The state uses a formula which includes the county’s population and road miles. Fuel tax revenues for the county were down in May, June and July for a total reduction of about 8 percent and the motor vehicle tax was down 15 percent.

In May 2020 revenue from motor fuel tax was $25,018, June $20,024, and July $23,636 compared to those months in 2019 when revenues were about $28,000 in each of those months. Motor V tax revenue for the county is about $4,000 per month in 2020 since the shutdown whereas in 2019 during the same time period the revenues were about $7,000 per month.

Survey

Presiding Commissioner Victor Stratman was completing the survey sent by MRPC to help understand the impact of the Covid-19 coronavirus on local government revenues such as sales tax, infrastructure projects, and staffing. On the survey’s cover letter, it stated with the information from the surveys, they’ll be able to deploy useful programs in support of local governments across the state. The survey is intended to capture losses and the impacts of the losses. The information will be used to inform Missouri State departments and their partners of the need from local governments for programs and assistance.

Some of the questions asked were about revenues such as sales tax, if services would be cut, which the commissioners said yes if they run out of money, would employees be laid off or furloughed and they might if the money is gone and because they can’t raise fees or taxes, and would facilities be closed. They were tough questions and the Covid-19 coronavirus is a crisis that in time some of these things could come about. The state and MRPC are thinking ahead to help solve problems.

Benefit management

Matthew Kohler, a development manager with Redwood Financial Group, LLC of Jefferson City, spoke to the commissioners, County Clerk Rhonda Rodgers and Clerk’s Deputy Renee Kottwitz about managing benefits for county employees. In conversations with Rodgers and Kottwitz, he learned they deal with six different benefit carriers and it is complicated and time consuming. He proposed to the group that his company can handle all of this for the county. His company is a big benefit enrollment company and at its core is providing excellent service. The company’s people would meet with each county employee one-on-one, walking them through the different benefits and providers to get the best fit. He said money can be saved and coverage for employees can be improved.

The company employees also are knowledgeable in financial education in areas such as credit counseling, paying down debt, making a budget, buying a first home and more, all which can be accessed by county employees at no cost. 

He spoke of be services his company offers such as a streamlined benefit portal for county employees to use. It offers a well card that saves them money on medical expenses such as vision, dental and prescriptions. It offers MD Live telemedicine employees can use 24-7 to talk to a medical doctor via computer or telephone. It is unlimited usage for an entire family. The MD Live is not connected with health insurance. He said anytime a person goes to a doctor, there is a “ding” on their insurance which is used to set premiums. The MD Live service is complimentary for the first year and after the first year is $20 per year per employee. The county employees can use this if the company is allowed to meet with 80 percent of the county’s employees to discuss their benefits.

Kottwitz, who handles the benefit work for the county, said it would be beneficial to get all of their benefit management under one company at no cost to the county.

The commissioners gave their approval for him to meet with the employees and to work with Rodgers and Kottwitz. Stratman asked him if those who meet with the employees will use it as an opportunity to sell and he said yes. Stratman asked him to be respectful of the county’s employees.

Pay It

There was another big bill from AT&T that charged $4.22 a minute for some of the 911 Dispatch phone calls. Deputy Donnie Chambers was in the commission meeting briefly and he said the big charges are when a 911 call is transferred to another jurisdiction that uses a different phone system.

The bill had a monthly service charge of $1,044 and the rest of it was for the minutes charges on those calls. Western District Commissioner said for now they don’t want to mess up 911 and he signed the bill for it to be paid.

Lawrence Mertz

Lawrence Mertz of 12125 MCR 448, St. James, was at the commission meeting first thing last Monday to talk about problems with the road. He told Eastern District Commissioner Doug Drewel the roads are better since he has been running things. He also thinks Drewel should be out in front and looking at what needs to be done and to have a vision as good leaders do.

He said there are two blind spots on his road that have great potential to be hazardous. He phoned the road district and left a message but was not called back and nothing was done. There is also a big hole that he thinks needs larger rocks put in it and there is a problem with the culvert pipe.

Stratman reminded him there have been several big rains, which cause problems with the roads. Mertz said he is mostly worried about the blind spots and 40 years ago he spoke to the county commission about it. He is 86 years old. He said they should deal with these problems before they happen as if there is a head-on collision it will be bad. He plans to speak to the school superintendent about it.

Stratman said the commissioners can’t keep people from driving fast on the county roads. Mertz asked them to look around and do all they can do to improve unsafe areas on the roads. Stratman said the old roads are where they are at and there is a limit to what you can do. About every road has a place like that. Mertz urged them to look seriously at these places and divert money to save a life.

Buildings and Grounds

The commissioners were told there is grease or fluid leaking on the interior handicap door at the south entrance. Stratman said he will take a look at it.

Stratman said he noticed the tile is still higher in an area in the hallway at the sheriff’s office.

On Thursday Stratman said the floor drain has been cut in the restroom in the sheriff’s office and they are installing the decontamination shower in that restroom that day. Stratman said while Ken Stratman Construction crew is in the courthouse, he wants them to replace the tile on the landing at the sheriff’s south door and look at the window above it that appears to be leaking as there is moisture in that area. Drewel said the window is about the only place it could be coming in.

About the handicap door closure, Stratman said it is leaking oil. It is a powered door with a motor and wiring. Also, the doors aren’t aligning properly. “Its out of our league to fix it,” he said. “There’s almost nothing you can rebuild any more.”