Jefferson Parish's sales tax receipts surged higher for the fifth straight month in November, offsetting a tax slump at the beginning of the year that had fueled concerns about a major budget shortfall. The parish received $11.2 million in sales taxes in November, an increase of $960,000 or 9 percent from a year earlier. It marked the fifth consecutive...
Jefferson Parish's sales tax receipts surged higher for the fifth straight month in November, offsetting a tax slump at the beginning of the year that had fueled concerns about a major budget shortfall.
The parish received $11.2 million in sales taxes in November, an increase of $960,000 or 9 percent from a year earlier.
It marked the fifth consecutive month of year-over-year increases that have erased a shortfall from the first two months of 2010 when tax receipts plunged 11 percent from 2009.
Had that pace continued for the entire year, the parish would have faced a budget shortfall of more than $14 million. But thanks to the turnaround, tax receipts from the first 11 months of 2010 were up $440,000 from the previous year, an increase of less than 1 percent.
"We're going to keep monitoring this, but at least we're trending in the right direction," Parish President John Young said. "We're hopeful that December will also be better with the holiday season."
He said December's sales tax data is expected to be available Feb. 11.
Jefferson Parish's sales tax receipts, which account for a quarter of parish revenues, have fallen steadily since 2006 when collections skyrocketed as New Orleans area residents replaced belongings destroyed by Hurricane Katrina.
Tax receipts for 2010 are expected to be about $130 million. That's $40 million below the 2006 peak and about $20 million less than what the parish would have taken in if receipts had continued their normal 3 percent annual growth from before Katrina, parish Finance Director Gwen Bolotte said.
"We've had to be very conservative with our budgets," said Bolotte, noting that the 2011 budget is based on projections that sales tax receipts will remain the same as 2010.
Sales tax receipts for most other public entities in Jefferson Parish were essentially flat for the first 11 months of 2010 compared to the same period in 2009, according to Jefferson Parish Sheriff's Office figures, which collects taxes.
The exceptions are Lafitte and Grand Isle, which had increases of more than 20 percent, and Gretna, where tax receipts were up 6 percent or $360,000.
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Paul Rioux can be reached at prioux@timespicayune.com or 504.826.3785.