City’s sales taxes fall short of budget

The city of Springfield’s sales taxes are not on track with officials’ expectations.

Through March, the 1 percent general sales tax funding issued by the Missouri Department of Revenue was $33.1 million for fiscal 2017. That’s 4 percent less than city finance administrators predicted, according to a news release.

The 1 percent sales tax check for March was $4.2 million, or roughly 8 percent less than the $4.6 million budgeted for the month. City Finance Director David Holtmann said in the release the March shortfall was due to processing delays. He also noted the city’s review of its top 50 vendors can sway unpredictably, making budgeting a challenge.

The sales tax check for this month reflects sales processed by the state in February from transactions made largely in January, according to the release.

The city relies on sales tax revenues as its main source for such vital service as police and fire operations. Roughly 56 percent of revenue in the city’s general fund comes from sales taxes.