2/5/14 Sales tax, unemployment point to healthy economy

  • By Nick Sabo
  • February 5, 2014
  • 346
                        
SUMMARY: Bed tax collections up as well The county’s sales tax collection came in at an average of half a million dollars a month in 2013, continuing a three year trend of growing sales tax revenues. Sales tax revenues paid into the county’s general fund in 2013 came in at $6,007,848.49 for an average of $500,654.04 per month. The total revenues are almost $500,000 higher than last year, when sales tax generated $5.53 million for the county’s general fund. The increase in sales tax follows a trend of economic growth in the county over the last three years, Holmes County Chamber of Commerce and Tourism Bureau executive director Shasta Mast said. In addition to the sales, bed tax collections are also up and unemployment is low. “The overall perspective looks strong,” Mast said. “The measuring sticks we have all show improvement.” The bed tax is a three percent tax paid on all overnight stays in the county. It is divided between the county and chamber of commerce and is used to fund projects and efforts to encourage more tourism. The bed tax collection came in at $547,156.97 in 2013, almost $45,000 more than 2012. In 2010, bed tax collections stood at $433,653 for the year, before jumping to $475,853.05 in 2011. Unemployment was 4.9 percent in Holmes County in November, the latest month for which numbers are available. Holmes County had the second lowest unemployment rate in the state for 2013. The state unemployment rate was 7.4 percent in November. Mast said the low unemployment rate is fueling sales tax growth simply because people with jobs have more money to spend than those who are not working. The unemployment rate is so low that that employers are looking to the surrounding area for workers, Mast said. A job fair is scheduled for March. Mast said the sales tax increase is being fueled by all industries, from tourism to cottage industries such as the wood furniture market. In fact, the county’s wood furniture market has been doing so well in 2013 that some shops are experiencing a backlog in orders, Mast said. Mast said some shops are so busy that they have turned down invites to attend a furniture show scheduled for April. “We have furniture makers who do not have time to do the show,” Mast said. “They don’t need to exhibit at the show to get more orders because they have more orders than they can fill. That’s a good problem to have.” Nevertheless, Mast said “only a few spaces” are still available for the show.


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