Nixa sales tax revenue improved by Wal-Mart

|tab|

New sales tax figures from the city of Nixa have cast new light on the financial impact Wal-Mart stores have on cities.|ret||ret||tab|

Considering the Wal-Mart Supercenter in Nixa has provided that city with $3.48 million in sales tax dollars over four years, it's no wonder Ozark city officials are craving a piece of the Wal-Mart pie.|ret||ret||tab|

"We know we are losing sales tax revenue right now," Ozark City Administrator Collin Quigley said of his city's lack of a Supercenter.|ret||ret||tab|

Gaining revenue is the city of Nixa, where the Wal-Mart store has increased its sales volume and consequently Nixa's sales tax revenues in each year since its 1999 opening. Here is the store's sales breakdown, with Nixa sales tax revenues in parentheses:|ret||ret||tab|

1999: $48 million in sales ($720,000)|ret||ret||tab|

2000: $54 million in sales ($810,000)|ret||ret||tab|

2001: $62 million in sales ($930,000)|ret||ret||tab|

2002: a projected $68 million in sales ($1.02 million)|ret||ret||tab|

However, it's not the financial windfall that appears at first glance. While Wal-Mart generated $720,000 in tax revenue during its first year, it was only a net difference of $350,000. |ret||ret||tab|

Wal-Mart has accounted for about 60 percent of Nixa's sales tax base each year it has been open.|ret||ret||tab|

Nixa's year-by-year tax base dollars were:|ret||ret||tab|

1998: $840,000|ret||ret||tab|

1999: $1.19 million|ret||ret||tab|

2000: $1.4 million|ret||ret||tab|

2001: $1.53 million|ret||ret||tab|

Nixa Wal-Mart Supercenter General Manager Michael Murphy said those dollars would be lost to the city had the Supercenter not opened there in 1999.|ret||ret||tab|

"Before I came to town, Nixa was losing (tax dollars) to Springfield," he said, much the way Ozark is today.|ret||ret||tab|

This Supercenter trend is a sign that Springfield's bedroom communities are ready to have a coming out party and Wal-Mart can't wait to capitalize on the growth.|ret||ret||tab|

But it works both ways, according to Nixa City Administrator Brian Bingle.|ret||ret||tab|

New city amenities such as Nixa's community center and swimming pool and a city park were paid for in part by the new sales tax revenues. Bingle said that nearly $300,000 of Wal-Mart tax revenue was earmarked for construction of the community center and pool. |ret||ret||tab|

Those added amenities in the community bring more people, which ultimately translate into more spending at other Nixa businesses, Murphy added.|ret||ret||tab|

A weekly payroll of $120,000 at the Nixa Supercenter also equates to additional funds spent inside the city, Murphy said.|ret||ret||tab|

"All those people spend money too," he said. "We always tell them keep it in Nixa, if possible.'"|ret||ret||tab|

But Murphy does admit his store and Nixa's sales tax revenue bottom lines will be affected by the new Wal-Mart Supercenter in Ozark, should the developer's proposal pass.|ret||ret||tab|

"We will see an affect no doubt. That store would affect this store and we would have a drop in sales."|ret||ret||tab|

Ozark is ready to keep its paying public at home, Quigley said. People flock to Supercenters, and Quigley believes Ozark shoppers make trips to Nixa and Springfield Supercenter stores.|ret||ret||tab|

"Because we don't have one in Ozark, I believe there are people that seek those locations out and shop there," he said. "There definitely will be a shift, and I think the majority of the shift will come from other Wal-Mart Supercenters."|ret||ret||tab|

[[In-content Ad]]