Sales tax collections drop less in April

April’s parish sales and use tax collections showed the smallest monthly decrease in collections so far this year, but parish officials say that statistic doesn’t mean the parish economy is improving yet.
St. Mary Parish Sales and Use tax collections totaled $3.37 million in April, down 6.9 percent from the $3.62 million collected in April 2015. The parish collected $7,016 in April as a result of financial audits, compared to the $165,922 collected in April 2015. Collections, excluding audits, were down just 2.6 percent from the same month of the prior year.
The first three months of 2016 dropped 11.2 percent, 13.4 percent and 15.2 percent each month compared to the same month of the prior year.
Sales and use tax collections have been lower than they were the previous year for 18 straight months since November 2014.
The smaller drop in collections in April doesn’t mean that the local economy is improving, Parish Sales and Use Tax Director Jeff LaGrange said.
LaGrange said he is continuing to hear of layoffs and downturns in the economy.
“I don’t think there’s any indication of a recovery at this time,” LaGrange said.
Hotel sales tax revenues saw a steep drop in April, dipping 27 percent from $55,197 in April 2015 to $40,289 in April 2016. The steep decline in hotel tax collections in April could be due to hotels taking a hit from the economic downturn or possibly a large delinquent collection, said Carrie Stansbury, executive director of the Cajun Coast Visitors and Convention Bureau.
Morgan City’s 0.3 percent road royalty sales brought in $97,360 in April and $343,289 year-to-date.
First quarter sales and use tax collections were roughly $1.4 million less than 2015’s first quarter. Parish sales and use tax collections totaled $9.45 million for the first quarter of 2016. Officials collected $170,617 as a result of financial audits.
First quarter collections were down 13 percent compared to the $10.86 million collected in 2015’s first quarter, which included $656,184 from audits.
Hotel sales taxes accumulated $127,491 during 2016’s first quarter, an 11.4 percent drop from the $143,957 collected in the first quarter of 2015.
The following occupational licenses were filed in April 2016: city of Morgan City, $19,797; St. Mary Parish, $17,865; city of Franklin, $7,678; town of Berwick, $1,586; city of Patterson, $1,552; town of Baldwin, $832.