Sales tax collections up in Starkville

By The Associated Press

STARKVILLE — Sales tax collections in January were the second-highest-ever for the month in Starkville, city data shows.

The Commercial Dispatch reports the city collected about $430,734 in January.

Sales tax returns have improved every year but one since 2001. Full-year revenue failed to eclipse $4 million only in 2001.

City officials said sales tax collections for the current fiscal year are outpacing last fiscal year’s monthly average by about $21,000.

January proved fruitful for the 2 percent tax on food and beverages. The city collected $131,985 for the month, an increase of almost 32 percent over January 2012.

Starkville also posted increases in the 2 percent hotel tax. The city collected $23,302, down a bit from January 2012.

A portion of the 2 percent taxes returns to the city, while the remainder is split between various organizations, including tourism initiatives, the parks and recreation department and Mississippi State University student programs.

Continued growth of sales tax returns is important to city officials since aldermen approved construction plans in June for a new city hall and renovation of its current home.