Jefferson City sales taxes bring in more money than projected

Jefferson City’s sales taxes are bringing in more money than expected for a third month in a row.

The city expects to have about a $1 million surplus at the end of the fiscal year, according to this week’s revenue model report.

The city collects sales tax on purchases in three categories: general sales tax, capital improvement tax and parks sales tax.

This June through August, sales tax receipts have come in higher than projected in each category.

Samuel’s Tuxedos, American Shoe, Saffee’s and Fine Mess Boutique in downtown Jefferson City told ABC 17 News they have noticed a boost in sales this year.

“Our business has been very good,” Sam Bushman, the owner of Samuel’s Tuxedos and Presiding Cole County Commissioner said. “It’s a lot of wedding business, so this is a big wedding year. But we’ve had a much better year selling suits. We’ve had a much better year selling men’s dress clothes.”

So far this fiscal year, the General Sales Tax has brought in nearly $500,000 more than what was projected.

The Capital Improvement Sales Tax has brought in nearly $270,000 extra.

And the Parks Sales Tax has brought in another nearly $270,000 above projections.

“We were very conservative last year when we did our budget,” First Ward Councilman and Finance Committee Chair Rick Prather said. “And we try to be conservative and that contributed to a lot of it too, so that plus the economy has been picking up. So we’re very happy.”

The extra sales tax revenue is also a boost for the county, according to Bushman.

“When the city sales tax is up, so is the county’s because Jefferson City’s the biggest municipality in Cole County, so we kind of feed off each other,” Bushman said.

The surplus from this year’s fiscal budget will roll over into next year’s budget.

The 2017 Fiscal Year Budget, which starts in November, has yet to be approved by city council.