Online sales tax collection likely kept up revenue flow

TEXARKANA, Ark. - For much of 2020, COVID-19 didn't seem to have affected Miller County's sales tax revenue income, according to the most recently released state financial stats - and there may be a reason for that.
Last week, Miller County Treasurer Teresa Reed said that back in July of 2019, the Arkansas State Legislature approved a measure allowing for counties to start collecting sale tax revenue generated from residents making online internet purchases.
The county's most recently released sales tax income records (as of November) show the county's general fund took in more than $119,910. Last year's November report showed a sales tax income of just under $107,700 while the same report for November of 2018 shows sales tax income of $102,770.
"This state measure may have actually helped the county get through 2020's COVID-19 economic slowdown better than it would have otherwise experienced," Reed said.
The county general fund's $119,919 sales tax income share accounts for about 45% of all the sales tax income the county receives. Another 45% of all sales tax goes to the county's road maintenance fund, while 5% goes to capital improvements, with the remaining 5% going to rural volunteer fire department operations.
During mid-Spring of last year, Reed said that the county's sales tax income also didn't seem to differ much from sales tax funds collected during the same seasonal periods in both 2019 and 2018 - and in fact, on some occasions, actually increased.
Reed also initially felt the summer months of 2020 would show a sale tax revenue collection downturn, owing enlarge measure to COVID-19-mandated business and restaurant shutdowns as the year progressed. However, these shutdowns may have also influenced people to shop more online.
Regardless of the reason, Reed said, hopefully, revenue will not only remain steady, but improve dramatically as 2021 progresses.

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