DONALDSONVILLE — The City Council received good news Tuesday regarding tax collections not only for the recently ended fiscal year, but figures that could lend a hopeful finish for the current year.
Finance Director Sandra Williams said the city’s 2.5 per cent sales tax took in $3,024,448 for the 2014-15 fiscal year, an increase of $133,668 from the previous year.
“We did fall on target to what we had budgeted for the year in sales tax collection,” Williams said.
She said the city’s June tax collections were $271,000, compared to $239,000 at the same time last year.
Council Chairman Raymond Aucoin noted that from Jan. 15 through June, the city collected $1.8 million in cumulative sales taxes, which comes to more than $200,000 collected per month.
“If we continue at that rate, that’s got to be our best calendar year ever,” Aucoin said.
Williams noted that because the city’s fiscal year operates from July to June, final figures may not reflect such a trend.
A major reason for increase is that the city is no longer sharing sales taxes collected with Ascension Parish within a 750-acre tract along La. 3089, after reaching a benchmark collection figure of $1.75 million.
After a tax-share agreement among the entities and the Sheriff’s Office for that tract expired last year, sales tax rates in the shopping district — anchored by a Wal-Mart Supercenter — had risen as high as 11 percent.
However, the agencies came to a new agreement last summer that saw the parish and Sheriff’s Office lower their tax rates in the area to a half cent each, bringing the total rate charged in the annexation back to 10 cents beginning Jan. 1.