Butler County’s annual sales tax revenue, adjusted for inflation, has jumped $3.1 million, or 10.2 percent, since 2010. During that same span non-sales tax revenue declined $5.6 million, or 10.3 percent.
County officials say that money from its 0.75 percent sales tax helped stabilize its revenue streams that state-funding cuts reduced following the economic downturn. But growing sales tax revenue alone has not kept the county out of the red, which has used layoffs and department cuts to fill the void.
Charlie Young, Butler County administrator, says the increased sales tax revenue shows that the county’s economy is improving with more people spending money on everything from cars to movie tickets.
The tax is now a larger piece of the county’s revenue pie.
“The (sales) tax is big part of revenues, especially with the Local Government Fund cut in half, recorder fees going down and less than expected casino money,” said T.C. Rogers, Butler County commissioner.
Last year, the county brought in $34.7 million from sales tax, or 41.5 percent of the general fund. In 2008, sales tax made up 36.3 percent of the county’s revenue.
The same goes for most Southwest Ohio counties.
Money generated from Montgomery County’s sales tax made up 41.1 percent of its general fund revenue in 2008 and now makes up over half. Warren County’s sales tax made up 49.4 percent of its revenue last year, up about eight percentage points from 2008.
“Sales tax has not just become more important, it has become critical because of state and federal cuts over the past four year,” said Pat South, Warren County commissioner.
A Journal-News analysis found that 60 of Ohio’s 88 counties have recovered to sales tax revenue levels achieved in 2007.
Meanwhile, Butler, Hamilton and Montgomery counties have yet to reach inflation adjusted pre-recession levels.
Butler County’s sales tax revenue has rebounded strongly, but county projections show it may take a few more years to get back to its previous levels.
The county expects sales tax revenue to jump 4.7 percent this year and continue to inch up in 2015.
Butler County officials say the county should receive a boost in the 2016 budget when sales tax revenue begins to flow in from the $350 million Liberty Center development.
The county needs that revenue to continue to grow to make up for future declines in its other revenue streams.
Tawana Keels, Butler County finance director, says the county will be receiving less casino revenue this year thanks to the opening of racinos.
Neighboring Warren County pulled in $32.4 million from its sales tax last year — its best year ever.
While Warren County has 100,000 fewer residents than Butler County, it nearly brings in as much from sales tax. Warren County officials point to the county’s tourist industry, led by Kings Island.
“Approximately 60 percent of the county’s sales tax is paid by people who don’t live there so the sales tax allows us to help meet the finances necessary to address the financial demands of our growing county,” South said.
Warren County is anticipating a 6 percent increase in sales tax revenue this year.
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