County on track to set sales tax record despite pandemic

Ozaukee County sales tax collections through the first 10 months of 2020 outpaced collections over the same period last year, lending more credence to the hope that a new record is in store despite Covid-19’s effect on the economy.

Sales tax collections in October totaled $902,952, a few dollars more than in October 2019, according the county Treasurer’s Office.

For the year, sales tax collections have totaled $8.82 million compared to almost $8.38 million over the same period in 2019.

There’s a two-month lag between when the sales taxes are collected and when they are reported.

October’s figures, for instance, represent August sales. Final numbers for 2020 won’t be available until February.

In addition, the county received a windfall of $296,567 in October in the form of a reimbursement from the Miller Park baseball stadium tax, which was retired in March.

That amount was almost 50% higher than the $200,000 county officials anticipated.  

“Collections have remained very consistent in 2020 compared to 2019 despite the economic shut down and the pandemic,” county Finance Director Jay McMahon wrote in a memo to the county Finance Committe. 

Collections are on pace to be greater than 2019, which totaled nearly $8.9 million for the year, and more than the $9.1 million budgeted for 2020.

“The current total, plus the additional sales tax payment from the Miller Park Stadium District, should result in total 2020 sales tax collections in excess of the 2020 budget,” McMahon said last month.

That’s “far better” than the 10% to 15% drop in sales tax revenue predicted by the Wisconsin Counties Association at the beginning of the pandemic in March, McMahon said.

It also bodes well for the county as it enters the holiday shopping season when consumer business activity generally increases, officials have pointed out.