Gasconade County finishes year with another record level of tax receipts

Use Tax generates more than $500,000

By Buck Collier, Special Correspondent
Posted 12/13/23

The final revenue numbers are in. And they are good. Very good, in fact.

For the fourth consecutive year, Gasconade County has received a record amount of General Fund Sales Tax money — …

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Gasconade County finishes year with another record level of tax receipts

Use Tax generates more than $500,000

Posted

The final revenue numbers are in. And they are good. Very good, in fact.

For the fourth consecutive year, Gasconade County has received a record amount of General Fund Sales Tax money — more than $1.23 million, compared to last year’s total of $1,200,185.

“It’s kind of amazing to me,” said County Treasurer Mike Feagan of the General Fund Sales Tax. The county’s December reimbursement check from the Missouri Department of Revenue was for $112,068, down from the $113,483 received in December of 2022. Still, he noted during last week’s County Commission session held in Owensville City Hall, this year’s General Fund Sales Tax revenue ran comfortably ahead of last year’s total.

“We’re about $30,000 ahead of last year,” the treasurer said.

Gasconade County topped $1 million in General Fund Sales Tax revenue for the first time in 2018 when it generated $1,006,640. But in 2019, the amount generated fell to $990,969. But despite the onset of the coronavirus pandemic, which would stretch over the next three years, consumers in Gasconade County continued to spend. 2020 became the first of four straight years in which the General Fund Sales Tax produced more than $1 million — $1,037,402 in 2020; $1,122,323 in 2021; $1,200,185 in 2022; and the $1,230,916 this year.

As well as the General Fund Sales Tax performed, the Use Tax was even more surprising. Applied to purchases made from out-of-state vendors — primarily purchases made online, which peaked during the pandemic — the Use Tax is the county’s general sales tax. This year is the first full year of collections; the Use Tax first was applied to sales in October of last year.

County administrators first projected about $150,000 being generated but then increased the forecast to about $300,000. It became clear about midway through the year that the Use Tax could generate significantly more than that. Indeed, the December check for the Use Tax ($56,139) is the third-largest check received since collections began. That check pushed the year’s total amount to $535,714. For the most part, this year’s Use Tax revenue was not figured into this year’s operating budget because administrators didn’t have a good assessment of how much revenue the tax would produce. This year’s amount will provide budgetmakers a base year for projected revenue in coming years.

Another pleasant surprise for Gasconade County and five of the county’s six municipalities is the Law Enforcement Sales Tax, which produced $78,956 in December — the largest monthly amount generated since the tax first was applied in October of 2022.

For the year, the Law Enforcement Sales Tax produced a total of $1,128,589. Of that, Gasconade County government receives $846,442 while the cities of Owensville, Hermann, Bland, Robsebud and Gasconade share $282,147. The municipalities receive their of the 25-percent portion of the tax according to population.

“A pretty good deal” for the cities, Feagan said of the revenue-sharing plan for the sales tax.

A breakdown of the portion going to the cities for December was not immediately available.

Meanwhile, county officials continue to wonder how much revenue will be produced by the 3-percent sales tax on marijuana sales. That tax became effective in October of this year after voters last spring approved the tax in the wake of legalized marijuana sales. With only one marijuana retailer in the county, officials are reluctant to even estimate potential revenue. Apparently, the Missouri Department of Revenue doesn’t have enough sales information from the fledgling marijuana retail industry to offer counties a projection of revenue.

“We’re not going to get any of that money until he files” sales figures with the state, said County Clerk Lesa Lietzow about the county’s lone retailer. She added that she doesn’t know how the retailer will file with the state — monthly, quarterly or yearly.

Another unknown for counties — and cities that have adopted their own 3-percent sales tax — is the outcome of a legal challenge from the marijuana retail industry to the new taxes that were added to the regular sales taxes charged by state and local governments. The so-called “stacking” of taxes is being challenged, which prompted Gasconade County officials to ask if the marijuana sales tax money should be set aside until the lawsuits are resolved — just in case it has to be returned.

Presiding Commissioner Tim Schulte, R-Hermann, asked Lietzow if the sales tax dollars should be placed in an escrow account.

“We’ll definitely have to set up an account (for the sales tax) in the budget,” the county clerk said.