Bruce and Vardaman are on pace to set record totals in sales tax returns this year while Calhoun City is expected to experience an overall increase for the second consecutive year.
Based on past trends, Bruce is expected to top half a million dollars in sales tax returns for the first time in the town’s history. Mississippi municipalities receive 18.5% of the total sales tax generated within the city. The state keeps the rest.
Vardaman is on track to hit $125,000 in sales tax returns this fiscal year, continuing a streak of annual increases dating back to the 1990s.
Calhoun City should reach $300,000 in sales tax returns this year. That would be two years in a row of improved sales tax returns, after the town suffered three straight years of decreases since peaking in 2009 at $339,631.
Bruce generated more than $38,000 in sales tax rebates in March, an improvement over 2013 keeping the year-to-date total ahead of past record pace.
Bruce Mayor Rudy Pope
“We’ve got some great small businesses in town that do a great job, and we’re drawing people from neighboring communities,” Mayor Rudy Pope said. “You can see it in all our stores that we have a lot of out-of-town folks shopping here.”
Bruce has experienced annual increases in sales tax returns all but two years over the past decade and is currently receiving 36% more sales tax dollars than they were a decade ago.
“I think it’s great for our city and a credit to our local businesses,” Mayor Pope said. “The better they do, the better it is for the city, and it puts us in a position to attract even more business.”
Vardaman has almost doubled its sales tax returns over the past decade from $63,299 in 2003 to $122,753 in 2013. This year they are on pace to top $125,000 – an all-time high for the Sweet Potato Capital of the World.
Vardaman Mayor James Casey
“We’re mostly made up of a bunch of small businesses, but when you put them altogether it makes a big impact,” Mayor James Casey said.
“We’ve had some new businesses come in during that time, too. We’re thankful for all our local businesses.”
While a 97% increase in sales tax returns over the past decade is a big plus for the town, Casey said it’s almost a wash with the increasing costs of providing city services.
“I don’t know that we really have any more money to work with than we did 10 years ago because our costs have gone up so much, it’s almost a wash,” Casey said. “More than anything it has allowed us to maintain what we have.”
Over the past decade, Calhoun City saw its sales tax returns climb from $297,688 to $339,631 and then fall back to $293,734. It has rebounded the past two years with increases and should climb back over $300,000 this year.
“Sales tax returns are important,” Mayor J.R. Denton said. “It makes up more than 30% of our general fund. That revenue pays for streets, the library, police, fire department, administration – all the non-revenue producing departments.”
Mayor Denton said city officials do what they can to attract new business and help support existing businesses.
“The answer is simple – we need to get more businesses that can sell more products, but it’s hard to accomplish,” Mayor Denton said. “So much of it is out of our control and market driven. We would all love to have more business, but there’s not a lot we can do outside of promoting our town.”
Calhoun City Mayor J.R. Denton
Denton noted infrastructure improvements such as the ongoing sewerage improvement project that was possible due to a $620,000 loan obtained by the city with 75% forgiveness.
“That’s critical for our citizens’ quality of life and to give us the kind of facilities we need to maintain our current businesses and ability to attract new ones,” Denton said.
Denton pointed out when looking at sales tax figures around the county they are virtually equal, but Bruce is able to serve as a hub for the northern end of the county where Calhoun City, Derma and Vardaman are all splitting sales tax dollars on the south side of the county.
Year-to-date totals for the current fiscal year show Bruce with $365,683. Calhoun City, Vardaman and Derma combined total $368,372.
Sales tax returns in the county’s smallest municipalities – Pittsboro, Slate Springs and Big Creek – remain minimal with each averaging around $350 per month.
Fiscal 2013-14 Year-To-Date Sales Tax Totals
Oxford $5.5 million
Grenada $3.0 million
Pontotoc $1.6 million
Houston $718,434
Bruce $365,683
Water Valley $346,655
Eupora $312,215
Calhoun City $227,801
Vardaman $93,843
Coffeeville $84,420
Houlka $72,935
Derma $46,728
Fiscal year is July 1-June 30
