Nov. was worst month for sales tax collections during downturn

November’s St. Mary Parish sales and use tax collections plummeted 31.6 percent compared to November 2014, the most revenues have declined during the 13-month streak of dropping collections.
In November, the parish collected $2.73 million in sales and use taxes, down from the $3.99 million that came in during November 2014, according to the latest monthly report. The parish collected just $1,483 in delinquent sales taxes as a result of financial audits compared to the $268,654 collected in November 2014.
Parish sales tax collections have been lower than the same month of the prior year since November 2014. Parish officials have pointed to the low oil prices and economic downturn in the region as factors behind the declining collections. More outstanding delinquent sales taxes are also contributing to dropping sales tax collections, said Jeff LaGrange, parish sales and use tax director.
Earl Davis III, assistant professor of economics at Nicholls State, said the oil and gas industry is a big income source for many households. Thus, the decline in oil prices has adversely affected families, which translates to declining sales tax revenues at the parish level, Davis said.
“With energy prices down and layoffs occurring, incomes fall, and, as incomes fall, they have less to spend,” Davis said. “And, as they have less to spend, there’s less revenue from taxes associated with it.”
On Nov. 30, Cushing, Oklahoma, West Texas Intermediate crude oil was $40.43 per barrel. The same oil was priced at $68.98 per barrel Dec. 1, 2014, according to the U.S. Energy Information Administration statistics.
South Louisiana has started to see some effects of the economic downturn in its unemployment statistics.
According to the U.S. Bureau of Labor Statistics, the Houma-Thibodaux metro area had 6 percent unemployment in October, up from the 5.3 percent unemployment the area had in October 2014.
Also in October, the Lafayette metro area had 6.8 percent unemployment compared to 5.8 percent unemployment in October 2014. Statewide unemployment showed less of a change during the same time period, rising to 6.8 percent in October from 6.4 percent for October 2014, according to the labor statistics.
St. Mary Parish’s hotel sales tax brought in $53,448 in November, a significant decrease from the $72,609 collected in November 2014.
Morgan City’s 0.3 percent sales tax for roads accumulated $68,754, bringing the year-to-date total collected for roads to $823,856.
The following occupational licenses were filed in November: St. Mary Parish, $2,450; city of Morgan City, $343; and city of Patterson, $125.