Mitchell's sales tax collections decline during 2013
The city of Mitchell’s 2 percent sales tax collections dropped nearly 3 percent in 2013 compared to 2012.
The city collected $10,426,372.16 from its 2 percent sales tax in 2013, according to a report presented Monday during a Finance Committee meeting at City Hall. In 2012, the city’s sales tax generated nearly $10.74 million, a record amount and a 9.2 percent increase from 2011.
“I was hoping we would do a little better,” said City Finance Officer Marilyn Wilson.
Wilson attributed the increase in 2012 in part to a hailstorm that pummeled houses in Mitchell on May 5, 2012, and had roofing companies working for months to repair houses throughout the city.
In the last quarter of 2013, from October to December, the city’s sales tax brought in approximately $2.97 million, the highest quarterly total of the year, but also a decline from 2012.
The total amount collected by the city in 2013 is still an increase from 2011, when collections totaled approximately $9.83 million.
Collections of the city’s entertainment tax -- an extra 1 percent tax on lodging, alcoholic beverages and prepared food -- declined nearly 1 percent, with $691,101.94 collected in 2013 compared to $697,676.11 collected in 2012.
According to the report, the city is expecting a 2 percent increase in its 2 percent sales tax collections this year, or about $10.75 million in total collections. The city’s total budget for 2014 is approximately $35.5 million, according to the city’s website.