Town sales tax revenues golden

Town Councilmembers learned that February’s sales tax receipts of $48,036 were a near record high for the month when they reviewed their March meeting packets. This follows January’s $52,155, which was a record and 56% over the 2020 report.

Finance Director Maria DeeDee’s assessment, “so far this year they are coming in pretty good,” is an understatement. The two month total is 31% of the year’s projected $328,202 sales tax receipts, as listed in the council packet. The $101,190 is at least 20% higher than the same two month period any of the last four years.

DeGoede was quick to note that local coffers are partially filled by internet purchases made by town residents, whether the store is in Burlington or across the country and that such sales taxes are up considerably because of the coronavirus pandemic. In Washington state the point of sale, where sales tax is calculated, is the purchaser’s address.

There are other caveats. On short notice DeGoede could not calculate big ticket boat manufacturing sales. The January-February totals correspond to November-December sales because of a two month lag in revenue reports from the state. But that means La Conner merchants, together with the internet retailers, had a banner holiday season, topping pre-pandemic 2019 sales.

Similarly, the special sales tax for the Town’s firetruck and fire station totaled $9,976 for January-February, also almost one-third the year’s projected budget. This is another indicator of high sales at local cash registers.

DeGoede noted that 2020’s sales tax revenues were not far below the projected budget. The $440,000 2020 sales tax total was only $30,000 below the year’s budget projection as listed in Council’s packet. October-December totals all exceeded the same months in 2019, which were the sales months August-October.

Hotel/Motel tax revenues to date continue to lag far behind 2020. The January-February totals of $11,261 are 32% to 36% below smae month receipts of the last four years. They correspond to November-December overnight stays. The Country Inn, La Conner’s second largest lodging facility, opened last Friday after being closed since the fall.

The 2021 General Fund revenues are projected to be $1.39 million, almost $492,000 above what Council considered in the fall. A Skagit County grant funding construction of the La Conner Swinomish Regional Library is the line item boosting the total.