RDS In The Media
Gadsden sales tax revenues rising
By Lisa Rogers, Times Staff Writer
Published April 11, 2007
Sales tax revenues and the number of those who pay taxes in Gadsden continue to increase, a sign of a healthy economy, said Pete Yonce, director of business development for RDS, the agency that collects taxes for Gadsden.
Yonce presented the information to City Council members at a meeting Tuesday.
The information shows a steady increase in tax revenue since 2002.
A big spike in 2004 was attributed to the opening of Coosa Town Center.
Yonce said Gadsden's top five taxpayers contribute 25 percent to the total revenues.
"That's very healthy," he said. "Some cities have one taxpayer that makes up more than 25 percent, and that's a scary scenario."
Yonce said privacy issues keep him from being able to specifically name the top five taxpayers, but he identified them by classifications.
The No. 1 business is warehouse clubs and supercenters. The No. 2 business is department stores, not including discount department stores. The No. 3 business is supermarkets and other grocery stores, excluding convenience stores. No. 4 is home centers, and No. 5 is full-service restaurants.
Yonce said only about 20 percent of the revenue generated comes from inside the Gadsden city limits, while the bulk of the taxes collected from outside Alabama is about 65 percent.
He said businesses that have headquarters outside Gadsden send taxes from their headquarters and that accounts for a large number coming from outside the state.
Yonce talked mostly about sales tax because that, he said, is responsible for the bulk of revenues.
Sales tax in 2006 accounted for $21,752,101 of taxes collected, while sellers use tax accounted for $1,742,227. The consumers use tax accounted for $988,018, the audit use tax for $142,808 and the audit sales tax for $46,663.
Unrelated to Yonce's presentation, city Finance Director Lisa Rosser gave council members a mid-year financial review.
Rosser told council members sales tax collections were $9.34 million from Oct. 1 through March 31. That's a 1.95 percent increase from the same period last year.
Occupational license fee collections were $6.1 million in the first half of the fiscal year, which is a decrease of $185,952 from the first half of 2006, she said.
"There is no doubt that this 2.96 percent decrease can be directly associated with the Goodyear strike that lasted for three months," she said.
She said the layoffs at Tyson's, Gadsden's fourth largest employer, also will affect the budget for the remainder of the year.
She said the city is slightly under budget in revenue and slightly over budget in expenditures.
"Even though this is a very small percentage, we must be concerned with the overall fact that the average citizen's disposable income has decreased due to higher gasoline prices, increases in natural gas and electricity costs, the continued rise in cost of grocery items and many other economic factors affecting our overall economy," she said.
Rosser said the opening of Academy Sports, the Fish Market and new industries such as Rigid Building Systems will have a positive impact on the revenues.
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