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Low auto sales affect Nov. tax collections
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| By: THERESE APEL, DAILY LEADER Staff Writer |
December 29, 2008 |
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City officials say Brookhaven's sales tax numbers for November have taken a dip with the national and local economy, but say better times are on the horizon.
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Brookhaven's sales tax check came in at $415,398.60, a little more than $10,000 less than last November's $425,466.35. Other area cities are up from the same time last year, but local officials look to the recent dip in car sales as part of Brookhaven's problem.
"We're continuing to see local sales tax numbers negatively affected by the lower than average car sales," said Brookhaven Lincoln County Chamber of Commerce Executive Vice President Cliff Brumfield. "These numbers represent the purchases made in October, a month usually much higher for the auto industries,"
In recent months, McComb, Natchez and Brookhaven have been neck-and-neck in sales tax amounts, but those cities are not as affected by the auto industry as Brookhaven tends to be, officials said.
McComb's November check was $434,693.18 as compared to last year's $407,231.07, and Natchez brought in $458,681.04 in sales tax for October's sales, as opposed to last year's $428,367.65.
Brumfield said Brookhaven's low totals should not strike fear in hearts of residents just yet. He said the Christmas season has already boosted car sales in the months since the numbers were totaled.
"With lower auto sales not only locally but nationally, we're seeing it reflected in sales tax," Brumfield said. "But our sales in recent weeks have been much better and as the auto industry offers more and more incentives which make this the best time ever to buy a new automobile, we'll see these numbers increase, especially with income tax due in upcoming weeks."
Meanwhile, the city's Shop At Home campaign is more important now than ever, Brumfield said.
"These totals also reinforce the need to buy locally and for local citizens to use their dollars and buying power to support local businesses and industries just as their sales tax dollars support local essential services," Brumfield said.
But in part, it's already paying off. He said many local retailers are reporting better sales than past years for the holiday season.
"Some very good news came from several local retailers that saw record days the week before Christmas as many shoppers held back on buying until the last minute," he said. "The good thing is that dollars are only held back so long before consumers have to make important purchases such as automobiles."
But Brumfield said coming months should show more positive totals.
"The situation since October has gotten better and definitely improved," he said. "We're excited about the December numbers which we won't hear about for another two months but based on reports from retailers we expect them to be strong."
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©The Daily Leader 2009
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