Sales tax income down in February

February’s St. Mary Parish sales tax revenues plunged by 15.7 percent compared with February 2014, but more than half of that drop was due to two large refunds given to taxpayers, said Parish Sales and Use Tax Director Jeffery LaGrange.
In February 2015, parish sales and use tax collections for the 4.3 percent tax totaled about $2.866 million compared with $3.534 million in February 2014, according to LaGrange’s report. Collections decreased about 15.7 percent, excluding audit collections, and 19 percent, including collections from audits.
About half of the deficit, comparing February 2015 to February 2014, comes from two large refunds, which were originally more than $500,000, but decreased to $268,000 by audit review, LaGrange said.
The parish collected $5,057 from audits in February 2015 and $144,671 from audits in February 2014, according to the report. “Historically, audit revenue in the beginning of the year is slow but should be picking up as we get into the year,” he said.
In January 2015, collections, excluding audits, dropped 7.6 percent compared to January 2014 and dipped 2.1 percent, including audits.
Comparisons of the parish’s top 50 remitters do not show “any major concerns other than a general slowdown in the industrial sector that we have been talking about for some time now,” LaGrange.
Titled vehicle collections are up 17 percent from February 2014, LaGrange said. Titled movables include boat trailers, used of new cars, 18-wheelers, or anything else titled with tax paid through the Department of Public Safety, he said.
LaGrange did not know why those collections increased so significantly. Automobile collections had previously been relatively flat recently, he said.
“So I was shocked to see that jump,” LaGrange said. “That’s for collections in February, which are for transactions in January. Evidently, maybe they were offering higher rebates in January or who knows.”
Department store and grocery collections are up slightly from February 2014.
February 2015 hotel-motel tax collections came in at $49,467 compared to $53,484 in February 2014. Hotel tax revenues stayed steady at about a 7 percent decrease per month for most of 2014, he said.
In August 2014, Cajun Coast Visitors and Convention Bureau Executive Director Carrie Stansbury said limited service properties, such as hotels without an attached restaurant, have been springing up in nearby parishes and have drawn some of the overnight guests away from St. Mary Parish.
Due to fewer rooms rented in St. Mary Parish, more competition in the parish has caused lower room rates, LaGrange said. “Is this a continuation of that? I’m sure it is. Does the slowdown in oil and gas have something to do with it? I’m sure it does,” LaGrange said.
The city of Morgan City’s 0.3 percent road royalty sales tax accumulated $68,563 in February 2015, bringing the year-to-date total to $169,060.
The following occupational license fees were collected in February 2015: city of Morgan City, $302,397; St. Mary Parish, $233,388; city of Franklin, $89,945; town of Berwick, $76,771; city of Patterson, $30,540; and town of Baldwin, $22,743.

This story was written by Zachary Fitzgerald of the Daily Review staff. Reach him at zfitzgerald@daily-review.com.