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FOR IMMEDIATE RELEASE
The City of Springfield’s June 2017 1% general sales tax check from the Missouri Department of Revenue is down 10%, or $437,409, compared to the amount budgeted.
The check reflects sales processed by the state in May from transactions made primarily in April. The sales tax check was $3,904,896 compared to the budgeted amount of $4,342,305. Year to date, revenues are down 4%, or $2,008,317, compared to budget.
The City heavily relies on sales tax revenues as its main source of revenue to fund vital services, such as police and fire operations. In Springfield, approximately 56% of revenue in the General Fund comes from sales tax. This is the fifth month in a row that revenues have been down compared to budget.
Compared to the same month last year, sales tax is down 15% and year-to-date compared is down 2%.
"Sales tax is a volatile revenue source and retail is experiencing a paradigm shift like we have never seen," said City Manager Greg Burris. "The Bureau of Labor Statistics: the retail sector lost approximately 30,000 jobs nationally in March alone, with thousands of store closings projected through 2017. At this pace, store closings in 2017 are likely to surpass the Great Recession year of 2008." ###
For more information, please call David Holtmann, Finance director, at 417-864-1632, or Cora Scott at 417-864-1009 or 417-380-3352.