A revenue crash

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A revenue crash

Tue, 05/12/2020 - 13:59
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Sales tax off 51 percent, use tax 220 percent

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El Reno’s municipal government is looking for funds “anywhere and everywhere” after monthly sales tax figures show a 51 percent slide from the same period a year ago.

The May report issued by the Oklahoma Tax Commission shows an even bleaker picture concerning use tax where the most recent numbers reflect a 220 percent decline from a year ago.

“We’re looking at every grant that’s out there and every program being offered that could help us,” said Mayor and Acting City Manager Matt White.

“It’s just going to be very tough and very tight for a while.”

In May of 2019, El Reno received more than $1.2 million in sales tax. This May, the report for sales tax shows the city government received $831,693 or close to $400,000 less.

The same report shows use tax a year ago netted El Reno more than $750,500. That compares to just under $230,000 for this May. The reports reflect the final two weeks of April and estimates of business during the first half of May.

El Reno City Council was expected to adopt a proposed budget for the upcoming fiscal year at its Tuesday evening meeting. The budget is forecast to be in the neighborhood of $16 million. That compares to the expiring fiscal year budget that came very close to hitting $30 million.

El Reno has been hit especially hard with the drastic decline in the energy industry as well as the COVID-19 pandemic. The city recently announced it was laying off close to two dozen full- and part-time employees and dropping some programs that had been scheduled to begin. The municipal swimming pool will not open this summer and overtime pay has been curtailed. A hiring freeze has been enacted and a system of employee furloughs has been put into place.

Calumet, reliant on agriculture and industry, has also been hit hard. The Tax Commission report shows the community received more than $52,000 in sales tax in May of 2019. That figure dropped to less than $25,000 for the same period this year. The use tax decline was more drastic, going from $70,000 a year ago to less than $7,000 for May of 2020.

Union City had a similar picture, going from $64,000 in sales tax in May of 2019 to roughly $37,000 this reporting period. The use tax in Union City shows more than $18,000 came in during May of 2019, while dropping to about $6,800 for the current report.

The portion of Okarche inside Canadian County fared better. The report shows Okarche brought in some $44,000 in sales tax revenue in this most recent report. That compares to about $32,000 during the same period a year ago.

The same could not be said for Okarche inside Kingfisher County where sales tax for May of 2019 totaled in the neighborhood of $45,000, but dropped to $34,000 this year.

Yukon saw very little movement in sales tax for May, reporting roughly $1.8 million for the same period in both 2019 and 2020. Use tax in Yukon actually rose this period to $172,000 compared to May of 2019 when it brought in $142,000.

Canadian County’s sales tax, which supports the juvenile justice center and the programs it operates delivered $591,000 this reporting period. That compares to more than $678,000 the same period a year ago.

Use tax going to the county government brought in $118,000 this reporting period compared to about $199,000 a year ago.