News
Montly Sales Tax, Use Tax Collection From Mid-Jan. to Mid-Feb.
The report from the Oklahoma Tax Commission regarding sales tax
collections for the City of Tulsa shows the collections have now
declined 12 consecutive months.
According to the preliminary report, sales tax collections from
mid-January to mid-February totaled $14,916,708, an 11.6 percent
decline from the same month last year. That decline was consistent
with revised general fund budget predictions.
Use taxes, which businesses and others pay on purchases of
equipment from out-of-state vendors, were below budget estimates.
The total was $997,427, down 31.4 percent from the same period last
year and 25 percent below budget estimates.
"This continued decline further confirms our decision to reduce
the general fund budget in order to have a balanced budget by the
end of the fiscal year," said Mayor Dewey Bartlett. "We are
not yet seeing significant improvement in the local economy. So
far, we are unable to determine if we have reached the bottom of
this economic cycle. Our sales tax decline began in April, 2009,
which was a decline of more than 5 percent from the previous
year.
"Finding solutions to our financial situation by reviewing our
core businessess is one approach that will steel the City against
future economic declines. We continue to look for new ways of doing
business. KPMG has arrived in Tulsa today to begin the planning
stages of a strategic business review of City of Tulsa departments.
It is still our goal to have the review completed by early
summer."
Since the decline in sales tax revenues began early last year,
the current and past City administrations have reduced operating
expenses in the general fund by about $27 million.
In the first nine months of the fiscal year, the City has
collected $18.34 million less in sales taxes and $2.02 million less
in use taxes compared to the previous year.
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