Cities set state tax rebate records

Published Thursday, January 17, 2008

By Denny Deady

Every city in Wise County except three set a record in 2007 for sales tax rebates.

Bridgeport lead the way with more than $3.6 million in rebates, surpassing the city's previous record of almost $2.8 million, set in 2006. Bridgeport's rebates have more than tripled in just five years.

Decatur earned a record $3.5 million, an increase over the city's previous record of almost $3.2 million in 2006. Decatur has been on a gradual, steady increase since the city started collecting sales tax in 1984. The city hit the $1 million mark 10 years later, in 1994.

The city of New Fairview adopted a sales tax in mid-1998. That year, the city earned $365 in sales tax rebates from the state. The following year, the city qualified for more than $5,000. Five years ago, the city had $14,708 in rebates. That number jumped to $165,840 in 2005, increasing to $178,642 in 2006 and $371,392 last year.

The city of Chico had $118,900 in rebates just five years ago. Last year, the city's share of the tax was $463,018. Growth has been steady in the cities of Aurora and Boyd. In Paradise, which received $82,090 last year, the growth has been gradual the past three years. In 2004, Paradise earned $65,960 and then fell slightly in 2005 to $57,791. Newark also experienced a slight decline in 2005, when the city earned $51,600, compared to $54,927 the year before. The $65,256 rebated to the city last year was a record.

Sales taxes were down in the cities of Lake Bridgeport, Runaway Bay and Alvord last year. Lake Bridgeport earned $26,090, down from the $30,690 received in 2006. The largest rebate received by the city was $31,122, in 2001. Runaway Bay's top rebate came in 1999, when the city earned $83,972. In 2007, Runaway Bay received $61,074, down from the 2006 total of $64,872.

Alvord has experienced steady growth in sales since the city enacted the sales tax in 1984. The only decline in revenue came last year, when the city received a check for $92,797, down from the 2006 total of $99,980.

Sales of mixed drinks in the county were at a record high last year, with the county receiving $31,568 in mixed beverage taxes, up from the $29,196 received in 2006.

All mixed beverage and private club permit holders remit to the state comptroller 14 percent gross receipts tax on their mixed beverage sales each month. At the end of each calendar quarter, 10.7143 percent of the tax paid is allocated to the county where each buiness is located. For any business located within an incorporated city, another 10.7143 percent of the tax paid is allocated to the city where it is located.

Decatur received more than any city in the county in 2007, $20,580. That amount was an increase over the $18,977 earned in 2006. Runaway Bay earned $2,859, down from $2,991 received in 2006. Runaway Bay's top rebate from the state came in 2004, when the city received $4,422. Bridgeport received $767 last year, up slightly from the $732 earned in 2006. Boyd earned $130, down drastically from the $3,303 received the previous year.

The 2007 total for Boyd is the lowest amount the city has ever earned. Mixed drinks were first served in the city of Boyd in 1991. That year, the city earned $1,414 in mixed beverage tax rebates.