Over the past few years, officials from the City of Petal have lauded the retail and restaurant growth throughout the Friendly City, a situation proven true by January numbers from its regular sales tax and special 3-percent tax – both of which are the highest in the city’s history.
According to figures provided by the Mississippi Department of Revenue, in January the city received its largest-ever sales tax check at $355,157, up from $319,638 at the same time last year. Meanwhile, January’s 3 percent sales tax check was $95,537, up from $87,030 at the same time last year.
“It’s good news; we haven’t had a ton of months (of regular sales tax) over $300,000 in the history of the city,” Mayor Tony Ducker said. “It’s good news for our businesses, because people are continuing to shop here in our town, so that’s always great for our businesses.
“On the city side, we always keep an eye on things that could be out there, to be forward-looking when you start talking about things such as inflation and the burden that the residents, the shoppers and the taxpayers are having to bear. So it’s good news, but it’s still a back-to-business, a workman-like number.”
Numbers reported by the department of revenue run approximately two months behind; in other words, numbers from January reflect sales that were made in November. Numbers for the last several months, in terms of regular sales tax collections, are as follows:
- July 2022: $293,807. Up from $276,647 at the same time the previous year.
- August 2022: $295,478. Up from $285,201 at the same time the previous year.
- September 2022: $279,480. Up from $267,587 at the same time the previous year.
- October 2022: $346,799. Up from $268,693 at the same time the previous year.
- November 2022: $255,269. Down from $271,901 at the same time the previous year.
- December 2022: $297,478. Up from $277,628 at the same time the previous year.
The 3 percent tax increase was approved in early August 2021, when 74 percent of voters voted in favor of the measure during a special election. Unofficial records from Petal City Hall showed that 457 residents voted in the election; of that, 344 voted for the measure and 113 voted against it.
The tax required a 60 percent voter approval to pass. The funds raised from the tax are going toward the city’s Parks and Recreation Department, which allows the city to maintain that department at its current level.
That, in turn, frees up money in the city’s fund for other endeavors and projects, such as pay raises for the police and fire departments, as well as improvements in the Parks and Recreation Department. The tax began to be collected in October 2021.
In early April 2022, the Petal Board of Aldermen approved – among other financial measures – the transfer of $1.2 million into a capital project fund. Those funds will be used for measures such as new soccer fields and a splash pad at the Robert E. Russell Sports Complex on Hillcrest Drive, and the city will “pay itself back” over time with the money collected from the 3 percent tax increase.
The 3 percent numbers for the last several months are as follows:
- July 2022: $82,506
- August 2022: $81,137
- September 2022: $82,207
- October 2022: $80,997
- November 2022: $86,273
- December 2022: $82,991
Of the funds received every month from the 3 percent sales tax increase, $65,000 per month goes to operating the Parks and Recreation Department. When the tax was first implanted, city officials expected it to bring in approximately $75,000 per month, but a year into the collections, it had exceeded that expectation at an average of $82,532 per month.
“I may be wrong, but I think our other biggest number (since the tax was implemented) was $89,000, so that’s a nice jump,” Ducker said. “And that doesn’t include the (recently-built) Chick-fil-A number, which I believe should be coming in next month.
“Sixty-five thousand of that (per month) basically runs the rec department, and so the numbers over that allow us to do the projects that you’re seeing.”
Ducker said the higher numbers in both sales tax categories are probably a result, in large part, because of the holiday shopping season that just passed. What comes next depends on matters such as inflation or recessions.
“If we were to run into a recession or if inflation gets worse, those things will obviously affect the folks that live in the Pine Belt, and they’ll shop accordingly,” Ducker said. “You can’t spend money, for the most part, that you don’t have.
“So we keep an eye on that, and we try to insulate ourself from some of the budget maneuvers that we’ve made over the past year and a half to protect us from that.”
