Sales Tax Decline

For the last several years we have been seeing a decline in sales tax revenue for the City of Corinth. There was a 1.1% decline from 2006 to 2007, and then a further 6.5% decline from 2007 to 2008 (our most recently completed budget year - we are currently in the 2009 budget year). We are down 7.6% for 2009 to through January compared to the same period in 2008.

Overall, compared to October through January of 2006 we are down 10% in sales tax revenue for 2009. As you can imagine this has impacts for the remainder of this budget year as well as for the next budget year.

In round numbers our finance department is expecting a $200+ thousand shortfall for this year. This can be absorbed by from the reserves in the general fund. the $520 thousand shortfall projected for next year (2010 budget year) is going to be the real problem if sales tax revenues don't turn around.