City sales tax nears fiscal-year record

The city of Midland reported a 46.75 percent increase in its sales tax collection in May, continuing a roll of gigantic increases compared to the same month during the previous year.

The city of Midland reported a 46.75 percent increase in its sales tax collection in May, continuing a roll of gigantic increases compared to the same month during the previous year. Image 1 of / 1 Caption Close City sales tax nears fiscal-year record 1 / 1 Back to Gallery

At this point, it is not a matter of “if” the economy is on fire.

The city of Midland reported a 46.75 percent increase in its sales tax collection in May, continuing a roll of gigantic increases compared to the same month during the previous year.

The streaks involving a key economic index are getting longer. They include:

--three straight months with sales tax collection increases greater than 40 percent;

--10 straight months with sales tax collection increases higher than 20 percent

--12 straight months of sales tax collection increases (all greater than 10 percent).

Going back eight months, the average percentage increase of a collection (compared to the year before) was 39.75.

For the record, the collection for May -- $4,824,350 – was the third most of any month in the city’s history. Year-to-date total sales tax revenue for fiscal year 2018 is $32.851 million, which is 38.40 percent greater -- or $9.115 million more -- than the same period in FY 2017.

The city’s fiscal year runs from October through the following September. Should the city finish identical to last year, which seems like an impossibility considering the recent run, the city will not only shatter the current sales tax collection record for a year -- $44.575 million – but will eclipse $46 million.

Sales tax revenue is generated by sales tax income from two months before collection; May collection is based on March sales.

Top sales tax collections for a month in Midland

February 2015: $4.928 million

February 2018: $4.905 million

May 2018: $$4.824 million

Recent city sales tax collection increases

May: 46.75 percent

April: 40.19 percent

March: 51.22 percent

February: 34.24 percent

January: 29.80 percent

December: 32.56 percent

November: 41.71 percent

September: 40.91 percent

August: 27.82 percent

July: 27.51 percent

June: 16.55 percent