Most Avoyelles municipalities see increase in sales tax revenue

   Not considering sales taxes from auto sales, six of the parish’s eight municipalities with a sales tax saw increases in sales tax receipts for the first four months of the year. The parishwide sales taxes to support the School Board, Police Jury and law enforcement also saw one-year increases over this time last year.

   Mansura and Cottonport were the only two towns that saw sales tax revenue decline for the first trimester of the year. Evergreen does not have a municipal sales tax.

   Sales tax from car sales is the single-largest source of sales taxes in the parish. 

   In 2014, local sales taxes and the parish hotel/motel tax totaled $6,574,775 for January-April. Car sales made up $1,023,875 of that amount. This year, the local sales tax collections totaled $6,905,767 for the first four months. Car sales accounted for $1,096,937 of that amount.

   The tax from car sales is based on the place of residence of the buyer and not the location of the car dealer. Therefore, a municipality would not necessarily receive more revenue from that source just because it has more car dealerships.

    For example, an Evergreen resident purchasing a car in Bunkie would pay 3.25 percent sales tax on that purchase -- the parishwide sales taxes -- because they have no municipal sales tax. He would not pay the 2 percent sales tax in Bunkie. A Bunkie resident would pay 5.25 percent in sales tax on the vehicle because of Bunkie’s sales tax.

   A Hessmer resident buying a car in Marksville would pay 4.25 percent -- the 3.25 percent parishwide sales taxes and the 1 percent Hessmer sales tax. A Marksville resident would pay 5.25 percent tax because of the city sales tax.

   Mansura’s sales tax collections show steep drops in February and April, resulting in the overall four-month decline. Cottonport’s collections also show increases in January and March and declines in February and April.

   The School Board’s Sales Tax Office collects the local sales taxes and distributes those revenues to the various taxing authorities.

Adding the car sales receipts to the four-month total, the School Board collected over $2.52 million in 2014 and$2.65 million this year.

    Marksville Secretary/Treasurer Heather Dauzat said the city has noticed an improvement in sales tax receipts since the start of the year.

“The economy has come back and people are spending more money,” she said. “I don’t know the reasons, but we are glad the economy is improving.”

    Robert Dufour, accountant for the village of Moreauville, said upgrades to one business and the annexation of another has helped the village post a higher sales tax total for the first four months of this year compared to last.

    Hessmer Village Clerk Stacy Jeansonne said she cannot point to one particular reason for Hessmer’s early-year sales tax improvement.

    “It just looks like a general improvement in the economy,” she said. “There is one new business in town, but it looks like our businesses are just doing more business than last year.”

    Simmesport Town Clerk Gwen Barr echoed that analysis, noting that the town has had a few new businesses open, but appears that all businesses are doing better than this time last year.