Electronic tax

Sales Tax Filings Drop After Holidays | News

Muskogee saw its sales tax filings fall below $2 million for the first time in nearly a year in March as consumer spending slowed at the start of the new year.

Data compiled by the Oklahoma Tax Commission shows the city’s share of sales tax revenue disbursed in March was about $1.92 million. This represents a decrease of 9.18%, down $176,496, from the nearly $2.1 million paid to the city in March 2021.

The March disbursement primarily represents local tax revenue from January activities. Businesses that issue more than $2,500 per month in sales tax receipts are required to file and pay electronically, and the amounts reported for this period represent sales from January 16 to January 31 and estimated sales from January 1 February to February 15.

The agency disbursed nearly $163.29 million to municipalities statewide, up $8.13 million, or 4.98%, from the $155.16 million disbursed in March 2021. over $4.67 million.

Muskogee County’s share of sales tax disbursements in March was $417,832, down 9.72% from $457,190 filed the same month in 2021.

City manager Mike Miller said sales tax payouts historically trended lower in March following the surge spurred by Christmas shoppers. He said that may have been exacerbated this year by the expiration of a tax credit approved under the American Rescue Plan Act.

“I think the big difference is that the family tax credit expired at the end of the year,” Miller said, referring to the expanded child tax credit. “That would start to show up with this report.”

The U.S. bailout, enacted March 11, 2021, increased the Child Tax Credit for 2021 from $2,000 per child in 2020 to $3,600 for each child under age 6 and $3,000 for each child aged 6 to 17, it went from $2,000 to $3,000. The IRS began sending monthly payments to families in July to put money in consumers’ pockets.

Muskogee’s sales tax revenue for the first nine months of fiscal 2022, which began July 1, totaled nearly $21.24 million. This represents a year-to-date increase of $1.26 million, or a 5.92% increase, from the $19.98 million deposited in the city’s coffers in the first three quarters. of the 2021 financial year.

While March sales tax receipts fell, the city’s share of use tax receipts increased 23.05% from filings posted for the same month a year ago. The tax commission’s most recent report shows March tax receipts paid to the city of Muskogee totaled $296,717, up $68,398 from the $228,320 deposited in the city’s coffers there. one year old.

Use tax revenue, which can fluctuate wildly from month to month, is primarily generated by out-of-state purchases of goods for in-state use or consumption. City councilors have dedicated $1.2 million of the city’s annual use tax revenue to support its economic development efforts.

Revenue from the 4% municipal sales tax—along with tobacco and franchise taxes—makes up just over half of the city’s general fund. Much of the balance is generated by assessed charges for utilities and municipal services.