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Pandemic not slowing sales tax revenue

By Jeff Harrison
Midwest City Beacon

Midwest City’s good fortunes continue.

The city received more than $4 million in sales and use tax collections in September, which was a 15.12% increase from this time last year. It marked the third consecutive month of double-digit increases.

Midwest City received $4,023,469 in sales and use taxes, which was an increase of $529,599 from the $3,493,870 it collected this time last year.

City Manager Tim Lyon said he continues to be pleasantly surprised by the positive sales tax reports this year. The taxes provide the bulk of the city’s operational funds including public safety, streets and parks and recreation.

“Once again, our city is blessed to have another outstanding sales tax month,” Lyon said at the Sept. 8 city council meeting. “Thank you, Midwest City residents, for shopping local for what supports police, fire and city operations.”

Midwest City received $3,667,499 in sales tax for September, which was 11.24% or $371,688 more than September 2019. The city took in $345,970 in use taxes this month. That was an increase of $157,911 or 83.97% from the $188,059 it received in September 2019.

Use tax is a type of sales tax placed on items purchased outside of the state but used inside the state. They include such things as online purchases and building materials.

Midwest City has seen an increase of $1.73 million or 16.37% so far, this fiscal year, which started July 1.

The sales and use tax revenue totals have also shattered projections. The September collections are $931,631 or 30.13% above projections. So far, this fiscal year, the city is 32.25% or $3,006,896 above projections. City officials predicted a 6% decline in sales and use taxes for this fiscal year, due to COVID-19.

The September report includes business that was conducted in the last half of July and an estimate for the first half of August.

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