Auto sales boost sales tax receipts

By Corene Brisendine

Car sales in June revved up July sales tax figures, according to data released Friday by the city of Manhattan.

Bernie Hayen, city finance director, said while big box stores had a mix of ups and downs in sales, small businesses and auto dealerships saw increased sales in June over May. June sales taxes collected totaled $944,339, an increase of $109,462 from the previous month’s total. In addition, auto dealers show a 35-percent increase in sales compared with the same month last year, Hayen said.

The July total sales tax revenues are ahead of 2012 totals by $109,967 for July 2012. Although this is welcome news, Hayen said, the total sales tax revenues are down 1.6 percent compared with the same period last year. As a result, revenues are still $35,191 below what the city projected for 2013. June was the second month of 2013 that showed increased sales tax revenues. The other increase was in April.

Sales tax revenues for July reflect sales taxes collected in June. The delay is created because local businesses must turn sales taxes in to the state, and then the state redistributes those sales tax revenues back to the city.

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