December sales tax revenue drops

St. Mary Parish Sales and Use Tax collections were down nearly 12 percent in December 2014 from December 2013, yet the year end totals only decreased by 0.4 percent compared to 2013, according to Sales and Use Tax Director Jeffery LaGrange.
In December 2014, sales and use tax revenues totaled $3.686 million compared to $3.864 million in December 2013. Excluding audits, collections dropped 11.8 percent. Collections from audits were $313,000 in December 2014, while December 2013 audit collections brought in $39,000.
Also in December 2014, the parish’s hotel-motel tax dropped 3.1 percent from the same month a year ago bringing in $52,761. The City of Morgan City’s 0.3 percent sales tax for roads saw December 2014 revenues reach $79,850 to bring the yearly total to just more than $1 million.
LaGrange had not yet determined the cause for the drop in sales tax revenues in December, he said. However, LaGrange heard reports on the national level that during the November shopping season Internet sales were higher than ever, he said. High Internet sales would therefore cause a decrease in retail purchases, he said.
“That’s a possibility of some of the decrease. Also, with the oil prices, per barrel, going down, obviously that has an effect on us here and some of the service industries,” LaGrange said.
In December 2014, the parish collected taxes from November 2014 purchases and this month is collecting taxes from December 2014 purchases, LaGrange said. Therefore, LaGrange will not know what the December shopping numbers were until the end of January, LaGrange said.
In the fourth quarter of 2014, collections came in at $11.7 million, a 4.9 percent decrease, excluding audits compared to the same period for 2013. Total revenue for the fourth quarter of 2013 was roughly $12 million. Audit collections during those periods were $656,000 and $339,000, respectively.
Overall, in 2014, the parish collected $45.4 million in sales and use taxes down from the $46.2 million collected in 2013. Without audit collections, revenues decreased 0.4 percent in 2014. During the year, sales tax collections from audits added to $1.915 million. In 2013, collections from audits totaled $2.489 million.
“We’re just about even with last year,” LaGrange said.
The following occupational license fees were collected in December 2014: St. Mary Parish, $8,239; City of Morgan City, $2,847; City of Patterson, $1,533; City of Franklin, $200; Town of Baldwin, $100; and Town of Berwick, $25.