Sales tax revenue for June is ten percent lower than the amount budgeted by the City of Springfield. The June one percent general sales tax check from the Missouri Department of Revenue was $437,409 less than what had been anticipated.
That check reflects sales processed by the state in May from transactions made primarily in April. Year to date, revenues are down four percent or $2,008,317 compared to the budget.
“Sales tax is a volatile revenue source, and retail is experiencing a paradigm shift like we have never seen," said City Manager Greg Burris. The Bureau of Labor Statistics shows the retail sector lost approximately 30,000 jobs nationally in March alone, he said, with thousands of store closings projected through 2017. “At this pace, store closings in 2017 are likely to surpass the Great Recession year of 2008."
According to city officials, the city relies heavily on the sales tax as its main source of revenue to fund vital services, including police and fire operations. This is the fifth month in a row that revenues have been down compared to budget.
