Baton Rouge’s October 2019 sales tax collections rose nearly 4% from the same time last year, raking in over $16.9 million, according to the latest report from the city-parish. With two months of collection reports left to be released, total year-to-date revenue is up by just over 2% at $161.6 million.
Collections have been fairly steady in 2019 compared to the previous year, with only one month, June, showing a combined decrease in sales and vehicle taxes, dipping by about 1.5%. September saw the biggest month of growth by far, raking in a 6% increase over the same month in 2018; most of which came from vehicle taxes.
Most of the October combined sales and motor tax growth came from outside the city limits, with a 5.6% monthly increase compared to the city’s 2.7% increase. The city is on pace to see a slight overall yearly rise in collections, about 0.72% as of October. The parish is in line for a larger increase of about 3.8%.
Sales taxes account for just under 60% of the city-parish’s general fund budget.
The 2% city and parish sales tax rose 4.4% in October compared to the previous year and is on pace to report a 2% year-over-year growth. Total parish and city vehicle tax collections dipped slightly in October, down 0.74% from the previous year, but still bringing in $1.34 million compared to last year’s $1.35 million.
October’s vote to incorporate the proposed city of St. George—if it makes its way through the legal system—will take away some of this sales tax revenue from the general fund. The city’s $1 billion budget for 2020 was approved without a cushion for that potential loss despite a claim that incorporation would cut the city budget by roughly $48 million.
Read the full report here.
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