SOME GOOD NEWS, HENNESSEY’S TAX REVENUE IS CLIMBING.
2020 Hennessey Sales Tax Collection – Prepared by Richard Simunek
Hennessey received a double Christmas present based on the August receipt of sales taxes. First, sales taxes collected in Hennessey increased from $86,976.01 in July to $99,521.94 for August, a 14.4% increase.
Total sales tax income from all sources equals sales tax income collected in Hennessey plus User tax income. User taxes totaled $26,872.20 for the August report from the state. User taxes are from on line sales such as Amazon, phone tax, and electricity tax. User taxes have been fairly stable and have increased in a few instances.
Total Sales Tax income equaled $126,394.14, exceeding the break even point of $120,000 income required to balance the town budget.
But the town budget could not have been balanced without some severe cost cutting measures enacted by the Town Council. These measures included termination of the Public Works Director and Head Librarian, the cancellation of a couple service contracts with the work now performed by town employees, and other cutbacks. No more budget cuts will be necessary if the current total sales tax income is maintained. So the August sales tax revenue was a double blessing for Hennessey.
As explained by Town Administrator Tiffany Tillman in the August Town Council meeting, the sales tax income from any purchase in Enid by a Hennessey resident who takes delivery of the product in Enid goes to Enid. However, if the purchase in Enid by a Hennessey resident is delivered to Hennessey, the sales tax income goes to Hennessey. The point of delivery is the basis of allocating the sales tax income to towns.
The data below is for sales taxes collected in Hennessey and does not include User taxes.
2018
July: $200,987.18
August: $193,164.70
September: $138,190.93
October: $167,513.50
November: $149,015.73
December: $177,526.37
Six Month Average: $171,066.40
2019
July: $170,653.80
August: $107,662.16
September: $103,208.75
October: $123,469.04
November: $101,740.99
December: $126,821.40
Six Month Average: $122,259 (Oil prices dropped dramatically in 2019.)
2020
January: $127,029.73
February: $122,362.09
March: $107,561.83 (Coronavirus business and personal restrictions announced.)
April: $102,717.13
May: $90,786.48
June: $84,433.46
July: $86,976.01
August: $99,521.94
Eight Month Average: $102,673.58
March to August Average: $95,332.81
The FY 2020/2021 Projected Budget is based on $120,000 monthly sales tax income.
Reserves for the General Town Fund (Non-obligated Funds) are $780,000.