Mayor Don Wesely today released Lincoln sales tax figures for February showing that net sales tax collections are up 15.4 percent compared to the same month last year and exceeded $5 million for the first time. The net sales tax revenue is up 11 percent for the first six months of this fiscal year, which began September 1. The figures reflect December sales, which are reported to the state in January and received by the City in February.
“December figures are very important for retailers and for the City because they reflect the level of holiday shopping,” said Mayor Wesely. “We projected that sales tax revenue would rise 4.9 percent this fiscal year, so we are very encouraged that the growth is far surpassing our estimate.”
Sales tax revenues fund about 42 percent of the City’s tax-supported budget. Property tax revenue funds about 28 percent of the budget, with the remainder coming from fees, interest income and other sources.
Net sales tax revenue for February was $5,163,582, which is $230,894 higher than what the City had projected. Net sales tax revenue is calculated by subtracting refunds to businesses for LB775 tax credits from gross sales tax revenues. Gross sales tax revenues increased 4.9 percent for February, and sales tax refunds decreased by 88 percent, resulting in the 15.4 percent net sales tax revenue increase.