Monett’s use tax continues to offset tax declines

Sales tax revenues to bi-county cities and county governments held more or less steady in January, compared to a year ago, and the city of Cassville continued its strong gains.

The seven Barry County cities received $780,056.60, down 2 percent from last January, mostly from Monett.

Cassville continued to show economic strength as its 1 percent sales tax for paying general bills rose for the 18th time in 19 months, bringing in $114,482.23, up $13,480.45, or 13 percent, from a year ago. That topped the old January record set in 2019 to start the new fiscal year.

Seligman set a new January record, receiving $11,525.09 from its 1 percent general fund tax, up $948.33 from a year ago, besting the 2021 record. It was Seligman’s third consecutive rise after a two-month drop.

Even Exeter set a new January record, receiving $2,206.33 from its 1 percent general fund tax, up $1,050.50 from a year ago and topping the old record from 2019 by almost $500. It was Exeter’s third increase in four months.

Purdy saw receipts from its 1 percent general fund sales tax drop for the third consecutive month, receiving $5,050.35, down $3,258.24, or 39 percent, for the lowest January sum since 2018. Purdy’s sales tax revenues have been down five of the last seven months.

Washburn saw its lowest January total since 2021, receiving $2,715.46 from its general fund. Down $2,815.80 or more than half of last January, the sum represented the fifth drop in six months.

Wheaton fell back into its old pattern of its 1 percent tax generating 20 percent more than double its .5 percent tax, for reasons unknown. The 1 percent general fund tax produced $3,171.42 in January, down $1,489.05, or 32 percent, from a year ago. It was the fourth drop in Wheaton’s receipts in six months.

The largest variable in sales tax revenues has come from Monett, impacting both the city and county totals. Monett’s two sales taxes have been consistently lower since the city’s use tax kicked in last June, except for one month, strongly suggesting that Monett’s retailers accepting online orders have substituted use tax for regular sales tax. A reduction in city sales tax receipts has occurred in no other bi-county town with a use tax. Monett’s two taxes for its general fund totaling 1 percent generated $206,256.11, down $14,532.99 from last January.

Adding in the use tax, which the Monett City Council has opted to deposit into the general fund, receipts from Monett’s five sales taxes with the use tax, compared to last January without the use tax, were up by more than $16,000, or 3 percent, for the month.

If 27 percent of Monett’s use tax was added back into the total, the sum from all seven Barry County cities would surpass the amount collected last January.

Lower sales tax collections due to a shift to use tax on the municipal level also impacts countywide tax revenues.

Barry County’s two older .5 percent taxes for its general fund and road maintenance each produced more than $227,616.93, each down by about $2,250 from a year ago.

The impact of Monett’s use tax situation has not affected revenues for Barry County, as voters approved a countywide use tax in 2020. The county only publicly released its use tax collection in its annual financial statement. Those sums will now be included in these monthly summaries.

In 2023, the county’s use tax collected $1,916,473.39. According to County Treasurer Gretta Tripp, since passage of the countywide law enforcement sales tax, 25 percent of use tax collections have gone toward law enforcement, which came to a total of $518,184.58 for 2022 and 2023.

For 2023, Barry County’s two sales taxes and its use tax provided $4,915,327.75 for the county’s general fund. That compared to $4,331,429.69 in 2022, a gain of more than 13 percent. Without the use tax, revenues only rose by .5 percent.

In January, Barry County received $140,601.24 in use tax. From that, $35,010.14 went to law enforcement.

Since Barry County adopted a law enforcement sales tax in 2022, sales tax and use tax have provided more than $3.4 million for policing services, through December 2023. Prior to that, law enforcement was funded through the county’s general fund. In 2019, before the sales tax for law enforcement and the use tax, Barry County’s general fund generated less than $2.7 million total from sales taxes.

Because Barry County has a use tax, all sales collecting use tax in Monett have still secured use tax for the county and not impacted county revenues. However, the separate sales tax supporting 911 and central dispatching in Barry County will not receive revenue siphoned away from traditional sales taxes into use taxes.

The separate .375 percent sales tax in Barry County supporting central dispatching and 911 services received $170,710.30 in January, down $1,658.18 from a year ago. It was the first drop in four months.