Surge in sales tax revenue benefits counties


DISTRIBUTED SALES TAX REVENUE (BY COUNTY)

YEAR/BUTLER COUNTY/WARREN COUNTY

2012/ $32,309,959/ $30,332,459

2011/ $30,503,664/ $28,058,472

2010/ $29,510,555/$27,367,525

2009/ $29,671,939/$25,623,355

2008/$33,408,493/$26,769,751

Sources: Butler and Warren counties

The amount of sales tax revenue distributed to Butler and Warren counties last year is on the rise again — a budgetary boost some say heralds further economic expansion.

Sales tax distributions in two of Ohio’s top growing counties increased in 2012 over 2011 and in Warren County the percentage increase exceeded any previous increase in more than a decade, an examination by The Middletown Journal/Hamilton JournalNews shows.

Collectively, Ohio’s 88 counties increased revenues generated from sales tax from $1.4 billion in 2011 to $1.5 billion in 2012, a more than 6 percent increase, according to records of the Ohio Department of Taxation.

Revenues distributed by the state for Butler County in 2012 rose to just more than $32.3 million, a 5.9 percent lift.

“The good news is that the economy is showing signs of recovering … in our biggest source of revenue,” said County Administrator Charles Young. “Sales tax (is a gauge of) the health of the economy and the willingness of consumers to spend.”

The increase is “a huge deal” for Butler County in being able to meet the funding needs of its agencies, including the sheriff’s office, auditor’s office and other critical functions.

Last year showed “the tide had lifted a little bit” when it came to escaping the recession’s financial doldrums, Young said. The county has also seen increases in other sources of revenue, including recorder fees and fees associated with housing, particularly in the second half of 2012, he said.

The amount of money distributed to the county via sales tax revenues remained “fairly consistent” in terms of percentage increases over 2011, he said.

The county is projecting that sales tax revenues will be 2 percent more in 2013 compared to 2012, Young said.

Revenues generated from sales tax equate to 40 percent of the county’s general fund revenues, he said.

Each county’s monthly revenues do not end up in county coffers until three months after they are earned. For example, Butler County received $2.7 million in sales tax revenue in December 2012 from money earned at area businesses in September.

Counties have no way of knowing exactly which areas benefit most from sales tax revenue increases because the state does not provide information that specific.

In Warren County, which has two 0.5 percent sales taxes, revenues distributed by the state to the county amounted to nearly $30.3 million, an 8.1 percent increase that bested all increases the county netted since 2000.

Warren County was not expecting such a dramatic increase in 2012, according to County Commissioner Pat South.

The extra $2 million the county received last year compared to 2011 will end up incorporated into its carryover, which will help pay for capital improvements, she said.

“The increase couldn’t have come at a better time,” South said. “We’re looking at adding a $6 million expansion to our common pleas court building because of some major space problems … and we’re looking at an $8 million expansion improvement upgrade of our 911 communications system.”

Sales tax revenue makes up 47 percent of Warren County’s approved general fund budget, which is $64.5 million for 2013, South said.

Money distributed from the sales tax revenues to the county, which dropped by 4.3 percent in 2009, rose by 6.8 percent in 2010 and 2.5 percent in 2011.

Sales tax revenues in Warren County account for almost half of the $64.5 million general fund for county operations and services.

South attributed the county’s robust sales tax revenues to Kings Island and other tourist attractions, as well as retail and commercial hot spots such as Kings Auto Mall in Deerfield Twp. and Cincinnati Premium Outlets in Monroe.

Revenues generated from Ohio’s 5.5 percent sales tax increased from $7.8 billion in fiscal year 2011 to $8.1 billion in 2012, according to Gary Gudmundson, spokesman for the Ohio Department of Taxation.

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