The city of Dothan’s reserves remained healthy through the end of 2019 with sales, use, and lodging tax collections exceeding budget projections by more than $2 million.
Dothan’s 2020 fiscal year started off strong in October with a $1 million surplus in sales taxes. The city picked up $5.9 million in November and $6.4 million in December, $459,342 and $510,758 over budgeted amounts, respectively. The total surplus is $2,004,852.
Sales tax collections in each month of November and December were both around $165,000 below the amounts collected in November and December 2018, but total sales tax collections for the first three months of the 2020 fiscal year are still $153,119 over the amount collected in the same time frame in 2019.
In December, machines and manufacturing tax collections were down 30% compared to December 2018 from $13,935 to $9,700. Farm and agriculture tax collections were up about 10% in a year-to-year comparison from $6,119 to $6,727. General sales and use tax collections were down 2.4% from $6,342,283 in 2018 to $6,190,776 during the same time period in 2019.
Total lodging tax collections are $102,504 over the amount budgeted for the fiscal year, but December collections were $24,481 lower than the projected amount with $283,442 collected.
The city of Dothan seems to be continuing its season of prosperity into the new year. In the 2019 fiscal year that ended Sept. 30, the city collected $78,074,644 in sales and lodging taxes, ending up with about $12 million is surplus tax revenue.
Sales tax collections usually peak in January because of holiday retail sales in December. January tax collections will be available in a couple of weeks and should paint a picture of how Dothan businesses fared during the 2019 Christmas season.