Good first quarter for city sales tax, but likely to change

    Imperial experienced a very good 2020 first quarter in city sales tax receipts, but in light of COVID-19, what lies ahead for those receipts is likely not going to be as good.
    In the first quarter this year, the city took in $127,356.40 with a steady increase each month since January.
    For the first month of 2020, the receipts totaled $40,345.96, February yielded $42,667.79 while March ended the quarter with $44,342.65.
    Except for the all-time biggest month last October, the March 2020 receipts are the largest since December 2017.
    But, with the real impact of the pandemic hitting mid-March, Community Development Director Tyler Pribbeno said it’s difficult to project what’s ahead for the sales tax receipt totals.
    With most stores, services and food establishments reducing or completely cutting in-person access because of state mandates the past six to eight weeks, it’s likely sales tax receipts will drop.
    Less sales equal less sales tax on the total, both locally and for the state coffers.
    Pribbeno doesn’t believe local businesses were hit as hard as those in the state’s biggest cities and other “hot spots,” but he’s certain lower sales tax totals in the couple months ahead will be the case.
    “I would think they will drop considering how things slowed down and some businesses had to close,” he said.
    He’s hopeful, though, for a quick rebound.
    “It will be interesting to see what the (sales tax) numbers look like as things start opening back up,” he said.
    To help businesses, the city is supporting a gift certificate purchase program through its website. Currently, 16 businesses are listed for which people can buy gift certificates now for later use.
    It was a way for the city to help provide some revenue for local businesses during this time, Pribbeno said.
    Also supporting the effort are all four local banking institutions, which are paying for the transaction fees and costs assessed when purchasing online so 100% of purchases can go to the businesses.