Archive for Wednesday, February 1, 2012

Basehor sales taxes down in 2011, but turnaround could be coming

The “Marketplace” sign is gone from the former Wolf Creek Marketplace building in Basehor, as is the rest of the equipment that was once inside. A group has shown interest in opening another retail store in the building, and city administrator Mark Loughry said at Monday’s Basehor City Council work session that tax incentives from the city might help close the deal.

The “Marketplace” sign is gone from the former Wolf Creek Marketplace building in Basehor, as is the rest of the equipment that was once inside. A group has shown interest in opening another retail store in the building, and city administrator Mark Loughry said at Monday’s Basehor City Council work session that tax incentives from the city might help close the deal.

February 1, 2012, 4:23 p.m.

Updated: February 2, 2012, 10:27 a.m.

Yearly trends

Annual Basehor sales tax collections, rounded to the nearest dollar:

2011: $193,588

2010: $205,035

2009: $235,902

2008: $219,431

2007: $216,799

2006: $231,837

Source: Kansas Department of Revenue

Though the city of Basehor’s collections from its one-cent sales tax fell for the second year in a row in 2011, figures from the year’s final quarter indicate retail sales could be on the way up again.

According to figures from the Kansas Department of Revenue, collections from the tax fell from about $205,000 in 2010 to about $193,600 in 2011, a drop of about 5.5 percent.

The dip, though, may have a lot to do with Wolf Creek Marketplace grocery store, which closed in late February 2010.

“I would say that was probably a major contributing factor,” interim city administrator Lloyd Martley said.

A look at month-to-month figures reveals that sales tax receipts in January and February fell by about 40 percent from collections during the same months in 2010, when the store was open. During the remaining 10 months of the year, collections were up by about 4 percent compared with 2010.

The 2011 decline in the city’s collections from its own sales tax will not harm the city’s budget, Martley said. The city also receives a portion of the revenue from Leavenworth County’s countywide one-cent tax, as well as compensating use taxes on goods delivered to Basehor residents from online retailers or stores outside the city, said Corey Swisher, city clerk and finance director. The city’s total sales tax receipts in 2011 added up to about $576,300, a reduction of less than $2,000 compared to 2010.

In addition, figures from the year’s final quarter show that growth could be on the horizon, Martley said, noting that the city's total sales tax collections during October through December were about 9 percent higher than they were in 2010's fourth quarter.

Martley said that increase could be a sign that increased retail activity, which the city expected before recession struck late in the last decade, is on the way.

“I just think we’re seeing a little bit of the growth that we were anticipating,” Martley said.

Collections just from the city's one-cent tax during 2011's fourth quarter were about 15 percent higher than they were a year before.

And the opening of the Orscheln Farm & Home store in the former grocery store building, set for spring, should help improve the city’s sales tax situation, he said.

“It’s obviously going to be a tremendous help,” Martley said.

MONTH BY MONTH

Basehor sales tax collections (nearest dollar)

Month: 2010; 2011; Percent change

January: 18,490; 13,291; - 28.1

February: 25,693; 13,246; - 48.4

March: 13,500; 16,570; + 22.7

April: 18,372; 14,362; - 21.8

May: 14,833; 15,995; + 7.8

June: 15,964; 15,119; - 5.3

July: 13,803; 13,878; + 0.5

August: 17,305; 18,162; + 5

September: 18,069; 16,515; - 8.6

October: 15,981; 19,653; + 23

November: 16,312; 18,254; + 11.9

December: 16,711; 18,541; + 11

Source: Kansas Department of Revenue

This story has been corrected to reflect that Lloyd Martley mentioned the 9 percent growth in total sales tax collections during the fourth quarter compared to the same period in 2010, and not the 15 percent year-over-year increase in the city's one-cent tax during the same period.

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