Census data cuts sales taxes to Franklin and Morgan City
Franklin and Morgan City’s 2010 census losses will add up to roughly a 10 percent and 5 percent loss, respectively, in sales tax revenues according to distribution formulas from the parish’s Sales and Use Tax Department.
The two larger cities’ losses will be Patterson and Berwick’s gains as they are set to see increased percentages, up 17.5 percent and 10 percent respectively.
For Franklin, the loss between the one-cent general sales tax and the three-quarter cent liquid and solid waste taxes equates to an annual hit of $225,000 based on past revenues tracking this year’s receipts. Morgan City will be down a total of $182,000 in both revenue streams. Both cities will lose approximately $30,000 each from the one-half cent law enforcement tax.
Mayor Raymond Harris said he does not think the shortfall will be as pronounced as he first believed.
Harris said sales tax collections for the first half of 2011 exceed the same period in 2010.
“Our percentage dropped because we lost population,” Harris said. “If sales taxes stay where they have been through the first six months of this year, we’ll be getting a smaller percentage but of a bigger pie.”
The mayor said there will be some loss: about $5,000 in the General Fund in the 1 percent sales tax, a small percentage in the three-tenths tax in the law enforcement tax.
“If those collections drop in the second half of the year, then we’re going to feel the pain,” Harris said.
He has already eliminated five job positions, through attrition and layoffs. “I’m already looking at a second round of cuts if we have to,” Harris said. “Just to be comfortable I may have to do some things.”
St. Mary Parish School Board sales tax receipt percentages are unaffected by the census.
Tax receipts for June continued on a robust note, logging $2.9 million compared to $2.64 million one year ago. Year to date numbers are averaging more than $3 million monthly, totaling $19 million compared to $16.5 million last year.
Monthly distributions were St. Mary Parish School Board, $1.3 million; parish council, $444,419; Morgan City, $312,318; Franklin, $192,869; Sheriff’s Office, $189,593; Patterson, $153,893; Berwick, $124,534; and Baldwin, $61,336.