HERMANN — Gasconade County’s march toward another record year for sales tax revenue took a major step forward this month when Treasurer Mike Feagan was notified of the largest monthly amount ever deposited into the county’s account.

This month’s reimbursement from the Missouri Department of Revenue, reflecting sales made in the county during July, was for $112,547, topping the previous high of $110,562 received in December of last year.

“That’s the largest payment this year,” Feagan told the County Commission during its Thursday morning session at the courthouse in Hermann.

Indeed, it’s the largest monthly payment ever. This year’s previous high amount was received in January at $106,177. June’s reimbursement was for $103,464, the only other $100,000-plus amount received this year, although a couple months’ payment came within a couple thousand dollars of the 100K mark.

July’s reimbursement brings this year’s General Fund sales tax receipts to $784,591, compared to $725,631 received through August of last year. The county’s 2021 sales tax revenue totaled $1,122,323 — the second consecutive record year following 2020’s total of $1,037,402.

Gasconade County first topped the million-dollar mark in 2018 when sales throughout the county generated $1,006,640. A year earlier, the county fell short of the million-dollar mark by about $35,000.

But as good as this sales tax news is for county administrators, there’s something even better: The use tax revenue took a big jump this month, outperforming all expectations. Feagan reported that the 1.325-cent use tax — the sales tax applied to purchases made from out-of-state vendors — generated more than $38,000 during July. Of that, Gasconade County Enhanced 911 received about $10,000. That’s the .325-cent portion of the tax.

“They have done well, also,” Feagan said of the emergency dispatching service.

That means county government receives the rest — $28,942.

“That’s an extra bonus for us,” the treasurer said.

“That’s a lot of goods bought out of state,” noted Southern District Associate Commissioner Jerry Lairmore, R-Owensville.

County officials attributed the large amount not only to continued online shopping by consumers but also to purchases of large items by businesses from out-of-state suppliers.

The county’s first use-tax check was received in November of 2021 and was for $1.74. It took a while for businesses to include the use tax among its sales tax roster to begin collecting the new tax. In December, the amount went to $9,399.

Through August of this year, the county has received $162,746 — well more than some officials had estimated when it was adopted by voters in April of last year.

When voters gave approval for the tax, it was the seventh vote in the past couple decades that the measure was on the ballot. However, this time county officials — with Lairmore leading the charge — pointed to a large amount of revenue being to online shopping because Gasconade County did not have a tax on those purchases. Online shopping grew at a phenomenal rate during the height of the coronavirus pandemic. Even as pandemic-related restrictions eased and shoppers began returning to their previous buying habits, Lairmore continued to believe that online shopping would remain popular here and elsewhere. So far, he has been correct, as seen in the use-tax revenue numbers.

It was the county’s 911 Program officials who added the impetus to the Commission’s decision to seek another vote on the use tax. But because of a quirk in state law, the 911 agency could not seek a vote on its own. An independent agency now, governed by its own Board of Directors, 911 was part of county government when the original .325-cent sales tax for 911 was approved. 

Because it was a county government agency, it was up to the County Commission to seek the use tax on behalf of the 911 agency. Commissioners decided to combine the county’s 1-cent sales tax and 911’s .325-cent tax when it placed the issue on the 2021 ballot.

Based on the monthly amounts received thus far this year, the use tax should generate at least $200,000 for county government by year’s end. That money will go into the General Fund.

In other matters, the Commission heard that County Collector Shawn Schlottach began receiving therapy to help her heal from a serious concussion suffered during a horseback riding accident. Deputy Collector Glenda Shockley attended the administrators’ meeting and provided an update on Schlottach, who in recent weeks returned to her office for brief periods while starting her recovery. She is expected to be away from the office for several weeks.

“Tell her to take it easy,” said Northern District Associate Commissioner Jim Holland, R-Hermann, to Shockley.

Law enforcement sales tax

Sheriff Scott Eiler has delivered the intergovernmental agreements to the five municipalities participating in the revenue-sharing plan that is part of the half-cent sales tax for law enforcement that was approved in April. Bland wasted no time in returning its signed agreement, noted Presiding Commissioner Larry Miskel, R-Hermann.

Of the six cities within Gasconade County, only Morrison is not taking part in the program because it does not have a certified law enforcement officer, which is the only requirement for a city to receive a share of the tax revenue. The money generated will be split 75-25 between the county and the cities with the cities’ funding based on population.

The tax, which takes effect Oct. 1, is estimated to generate about $1 million a year. The county will begin dispersing the cities’ share in February, after the county’s 2023 operating budget takes effect.