sales tax

A booming economy is producing record levels of sals tax revenue for cities in DeSoto County.

Cities in DeSoto County continue to see strong sales tax collections as a result of a booming economy, and officials hope the trend will carry over into 2022.

Horn Lake took in almost $60,000 more in revenue in November than it collected at the same time in 2021 - $579,547 compared to $519,958. And since July 1, the city is up $312,241 having collected $2,979,424 compared to $2,667,183 in 2020. 

“That’s good news,” said Mayor Allen Latimer. “Hopefully the trend will continue for the next 11 months. And last year it was up a good bit over the year before. I think it expresses the confidence of the businesses to move here and our citizens to shop here.”

Southaven, Hernando, and Olive Branch also saw increased collections as well. Southaven reported collections of $1,638,479 in fiscal year 2020 compared to $1,307,603 in 2021.

Hernando Mayor Chip Johnson said the city had its biggest year in history last year for sales tax collections and looks like it will finish strong again.

The city collected $431,164 in November compared to $383,595 last year, an increase of $47,569. Year-to-date since July 1, Hernando has collected $2,155,146 compared to $1,885,151 last year, an increase of $269,995.

“I think those revenues show that Hernando has a strong retail base and people are still feeling confident about the economy in Hernando,” Johnson said.

Johnson said new home permits remain strong which means there are more people shopping locally in Hernando. The city also does its best to hold special events like Dickens of a Christmas on the square to bring more shoppers in and to encourage residents to support new and existing businesses.

“A lot of our retailers are seeing a great increase in their sales,” Johnson said. “And it will only continue when the new exits at McIngvale Road and Getwell on I-269. That’s where even more retail will come.”

The $8.7 million McIngvale Road project now gives Hernando a second entranceway into the city and its prime location is likely to be the economic driver in the next 10 years.

Johnson said the city always budgets conservatively and that the additional revenue will likely be set aside in a rainy day fund, or could possibly be used to meet some other needs like paving more roads, maintaining the city’s fire rating, parks improvements, or hiring more police officers.

“There are a lot of things our citizens want us to do and of course they cost money,” Johnson said. “So it is good to have extra money in the bank so we can try and do some of those things our citizens want.”

Olive Branch Mayor Ken Adams said his city, like Hernando and the rest of DeSoto County, is blessed with a strong housing market and booming economy.

“It’s a very positive thing,” Adams said. “We are excited about it and just continue to see the number of business licenses grow and our revenue from from businesses deciding to locate in Olive Branch. We are averaging close to 250 to 300 new housing permits a year. We just have a lot of positive things going on here.”

Sales tax collections in November were up $131,456 or $1,174,367 compared to $1,042,911 a year ago. Year-to-date, Olive Branch has collected $6,107,983 compared to $5,413,285 last year - an increase of $694,698.

“We would love to see those numbers continue,” Adams said. “We have a lot of development on the horizon, some that has been approved and some that is being evaluated now. I think absent of any major national economic nose dive that we will have another very positive year.”

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