With about four months remaining in the fiscal year, Guthrie's sales tax revenue has remained steady when compared to the first eight months of FY 2021, but there is a word of caution from one city leader.
“Sales tax revenue has been strong for fiscal year 2022 to date," wrote Guthrie City Clerk Kim Biggs in an email to the city staff and City Council. "I don’t want to spread doom and gloom, but in Fiscal Year 2021, July sales tax revenue was down 5%; August up 6%; and September down 2%. We need to realize that sales tax revenue may not stay at an 11% average increase for every month for the balance of Fiscal Year 2022. Don’t start spending future revenue quite yet."
So far in May, revenues have totaled out to $695,038.76. That is $7,745.79 (or 1%) less than what was recorded in May 2021, which came in at $702,784.55, the highest month total in FY 2021.
Sales tax growth projection for the FY 2022 budget was 5.24% more than the actual FY 2021 sales tax revenue and, through May, FY 2022 sales tax revenue is still 8% ahead of the same eight-month period a year ago.
Use tax revenue for May totaled $90,715.02, which is $9,006.51 (or 9% less) in May 2022 as compared to May 2021, which totaled out at $99,721.53. It also is higher when compared to the first eight months of FY 2021.
Use tax growth projection for the FY 2022 budget was 9.6% more than the actual FY 2021 sales tax revenue. Through May for FY 2022, use tax revenue is only 8.3% ahead of the same eight-month period, but Guthrie is only behind $956 to meet the FY 2023 forecast.
Use tax is essentially the same as a sales tax but is applied not where a product or service was sold, but where a merchant bought a product or service and then converted it for its own use, without having paid tax at the initial purchase.
Guthrie's sales tax year-to-date collection is $5,245,669, which is 1% more than the year-to-date projection of $5,203,597. The use tax year-to-date collection is $735,579, which is $956 more than the projection.
The fiscal year ends Sept. 30.