Columbia sales tax revenue drops below projection

Top Columbia officials think sales tax revenue in the current fiscal year could fall even lower than originally projected.

The city hosted a city council work session Monday to go over the fiscal 2020 budget. Sales tax was a major focus of the gathering.

According to a presentation city staff prepared for council members, sales tax revenue is tracking lower than the 1.75 percent drop projected when the city council approved the budget last year.

Based on receipts through August city leaders now anticipate a drop of more than 2.3 percent for the fiscal year, which ends in September.

Council members said Boone County has not experienced the same drop.

City officials say Columbia will need to amend the current fiscal year budget to account for the drop. Officials say they’ll also need to amend City Manager John Glascock’s proposed fiscal 2020 budget to plan for a similar drop in revenue in the coming fiscal year.

Council members said it is possible that increased student enrollment at the University of Missouri could help bolster lagging revenue, but that remains to be seen. Classes for the current academic year began last week.

Look for more on this developing story.