October 2, 2012 Local Option Sales Tax Distribution: September 2012
September’s distribution the 1% local sales tax came out earlier this week, and July turned out a slower growth month than the prior two months. Statewide the 1% took in $32.7 million for July sales, putting September distributions, up 4.2%.
Reports out today indicated that August sales nationwide rose 0.5% above July, pretty good, but much of the increase was due to increases of gasoline prices.
Also, nationally, both consumer confidence indices rose significantly suggesting increased spending over the next two months. See chart below from Moody’s Economy.com.
This was the first fiscal month of fiscal year 2013. For fiscal year 2012 growth was a respectable 8.0%. (We predicted 7.9% last December and 6.8% way back in December 2010).
Slower growth for one month does not necessarily mark a trend since we have tended to have one month in three be near zero over the past year. So if our slowest month is 4% that would be good. This is most likely due to Tax Commission cut offs and processing.
Economic Policy Analyst