Yukon sales tax report provides surprising results

July’s sales tax report from the Oklahoma Tax Commission contained a pleasant surprise for Yukon city officials.
However, the city manager said he isn’t convinced the city is out of the woods just yet.
According to the sales tax report, Yukon received $2,105,615 in sales tax revenue in July. That is up more than $70,000 from last July’s total.
The city also saw a significant increase in use tax revenue, jumping from $149,321 to $195,414.
The July report reflects business that was conducted at the end of May and an estimate of the first 15 days of June.
City Manager Jim Crosby said he was surprised at the sales tax numbers, especially based on expectations related to businesses that were closed or greatly reduced because of the COVID-19 pandemic.
“I was very surprised. Usually that means, especially in these times, that someone paid late. There is no reason the taxes should be up,” Crosby said.
Crosby said he remains very concerned about how the sales tax will be impacted over the next several months, especially now with the continued increase in COVID-related cases.
“I expect we will come back to the new normal, realizing the economy is not doing well. We will figure out that we have to cut back,” he said.
Yukon’s budget, which went into effect on July 1, was about the same as it was last year. However, it dips into the city’s reserve accounts and is still about 10 percent below where city leader’s had originally anticipated.
Crosby said city officials will monitor the budget closely to ensure the finances don’t “get in a bad situation.”
In April, Crosby laid off 18 workers, in part because of finances. Since then, most of those workers have returned to their jobs.
However, the budget did not include raises for employees this year, and some benefits were cut.
“No one knows what the future holds,” Crosby said.
On the bright side, Crosby said construction of the new Atwood’s store is moving forward quickly. He said that should help produce additional sales tax revenue.
Yukon wasn’t alone in seeing increased sales tax.
Mustang saw its sales tax top $1 million in July. The check to Mustang was $1,127,293, which was an increase of $151,297 from last July.
Also up in July was Piedmont, where the sales tax climbed by $127,000.
Most cities, however, saw declines.
El Reno’s sales tax fell by $448,000; the Canadian County portion of Oklahoma City fell $219,000, while Canadian County’s sales tax receipts fell $120,000.

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