October sales tax receipts set new monthly record

    It looks like the residents of Imperial received an early Christmas present when city sales tax receipts for October came in last week.
    But, more likely, a higher-than-usual number of people paid their vehicle taxes in October, pushing those city sales tax monthly receipts to a new record level in more than 10 years of collecting.
    A total of $51,467.27 was deposited in the city account for October, the first month of the 2019 fourth quarter.
    That figure smashed the previous monthly record of $46,559.94 received six years ago during December 2013.
    Of the record-setting total for October, $12,869.30 came in from sales tax on motor vehicles, according to the Nebraska Dept. of Revenue.
    A normal month for vehicle sales taxes is between $4,000 and $6,000. Through October 2019, the highest month in vehicle taxes this year was May when $7,890 was collected.
    When the sales tax receipts are deposited each month by the state, they provide the city with a breakdown of how much came strictly from vehicles taxes.
    That’s because, by state law, those dollars must by placed in the city’s street fund and used only in that department.
    The rest is split 50/50 between economic development and community development projects. Imperial adds 1% sales tax on eligible purchases. Added to the state’s 5.5%, that equals a 6.5% tax within the city limits.
    City officials are baffled at the big jump in October vehicle tax receipts.
    One theory is due to the Sept. 11 hailstorm in Imperial and the area, when many vehicles were damaged and totaled, sending people out to buy new ones.
    However, Jo Leyland, City Clerk/Administrator, noted most new or replaced car owners probably wouldn’t have been through the 30-day in-transit period given on vehicles yet.
    One thing Leyland does know is city officials never thought they’d be taking in so much in sales tax receipts.
    “I never had a clue we’d be taking in this much,” she said.

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