City’s sales tax collections keep rising monthly

City’s sales tax collections keep rising monthly


Though sales tax diversions appear to have leveled off, city officials in Gluckstadt say the revenue is still ahead of their initial projections.

“Sales tax diversions have been higher but they still exceed expectations,” said Mayor Walter Morrison.

He says the diversions have “leveled off” in a way that matches trends in the national economy.

In addition to other factors, Morrison said the city is likely beginning to see the “impact of inflation.”

Diversions put the city on track to begin construction of their first building, a 14,000-square-foot police station and court services facility near Germantown High School on Calhoun Station Parkway.

In addition, Morrison said city crews are working on a paving project centered on the Ridgefield subdivision and a major excavation of drainage ways along Bear Creek is currently being planned.

“We have a lot of stuff going on in the city,” Morrison said.

In May Gluckstadt collected $291,453, up 18.22 percent from 2022 when they collected $246,545. This was the highest growth in the county for the month of May between 2022 and 2023. 

As of May, Gluckstadt has taken in $1,999,145 in the 2023 Fiscal Year. This is a 16.66 percent increase from last year’s take of $1,713,672 and once again the largest increase in the county.

Five municipalities in Madison County individually report monthly sales tax receipts to the Department of Revenue. DOR returns a percentage of the sales tax back to the municipalities.

The state's sales tax collections have a three-month cycle. Taxes are collected by the retailer one month; it is reported and paid to the state Tax Commission by the retailer the second month; and the diversion is then paid to the cities.

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