Big dip in tax collections on vehicle sales leaves overall August collections down

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Sale tax collections, excluding those on vehicle sales, rose modestly in East Baton Rouge Parish in August after three straight months of decline. However, new figures from the city-parish Finance Department show collections on vehicle sales plummeted in August, leaving combined collections down on the month.

Vehicle sales aside, the sales tax tally in August was approximately $13.8 million, up 0.78% over August 2015 collections of roughly $13.7 million. But a 11.1% decline in vehicle sales tax collections—$1.2 million was brought in during the month, down from $1.3 million last August—left combined collections at just shy of $15 million, a decrease of 0.28%, or $42,716, from August of last year.

August marked the second straight month in which vehicle sales tax collections were down sharply. In July, collections were off 12.8%. However, with an estimated 100,000 vehicles damaged in the August flood, it’s likely those figures will rebound in the September report as flooded cars and trucks are replaced.

A breakdown of the total August collections shows spending was stronger outside the Baton Rouge city limits than it was in the city. Including taxes on vehicle sales, approximately $6.6 million was collected outside the city limits during the month, a rise of about $36,000, or 0.5%. Inside the city limits, collections were at roughly $8.4 million in August, a decline of just under 1%, or about $78,700.

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Through August, total tax collections in East Baton Rouge Parish are roughly flat this year. The $53.4 million collected thus far this year represents a 0.27% increase over last year.

See the full sales tax report.

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