Contact: Bill Rubin/Jacki Bradham, St. Croix EDC, 715-381-4383
2.2% Gain From 2009 May Suggest Consumers are Spending Again
The Wisconsin Department of Revenue (Revenue) recently posted January to December 2010 sales tax distributions to counties that have enacted the 0.5 percent local sales tax. Revenue’s summary shows $4,884,055.57 was distributed to St. Croix County in 2010 compared to 2009 distributions of $4,778,627.75, for a 1-year increase of $105,428 (+2.2%).
“This may be another encouraging sign of consumer confidence,” said William Rubin, executive director of St. Croix Economic Development Corporation (EDC). “Economists say the current recession started in December 2007. Most individuals and families have simply spent less in the last couple of years, meaning counties have collected less sales tax proceeds from the Department of Revenue.”
From 2006 to 2008, Revenue’s sales tax distributions to St. Croix County topped $5 million, including $5,342,618.94 in 2008, $5,095,251.27 in 2007, and $5,408,637.00 in 2006. “We’re very interested in tracking the 2010 holiday purchases,” said Rubin. “Those tax receipts will be recorded in Madison in early 2011. If those purchases are up from the prior twelve month period, it could be another sign pointing toward recovery.”
St. Croix, Polk, and Pierce counties comprise Wisconsin’s St. Croix Valley. Like St. Croix County, sales tax distributions to Polk and Pierce were up in 2010. Polk County had an increase of $63,339 (+2.85% from 2009) and Pierce collected $104,666 more than in 2009 (+7.35%).
The ten counties in west central and northwest Wisconsin that are aligned with the Momentum West region received 2010 sales tax distributions of an estimated $27,434,315 million. In 2009 the ten counties received distributions of $27,010,989 million, or a 1-year increase of $423,326 (+1.56%) in 2010. Increased distributions from 2009-2010 were reported in Barron, Chippewa, Clark, Pepin, Pierce, Polk, and St. Croix counties, while Dunn, Eau Claire, and Rusk counties had lower 1-year distributions.
Wisconsin imposes a five percent tax on the sale or use of most tangible personal property and on selected services. Each merchant is responsible for paying the sales tax, regardless of whether the tax is identified on the bill or collected directly from the customer. Counties may levy local sales and use taxes on the same tax base as the state sales tax. As of July 1, 2010, 62 of Wisconsin’s 72 counties levied the 0.5% county sales tax. St. Croix County has collected an additional 0.5% on taxable purchases since April 1, 1987. Polk and Pierce counties have collected the extra tax since April 1, 1988.
Revenue’s distributions to the 62 counties with the local sales tax totaled $271,698,527.17 from January to December 2010, or a 1-year increase of 1.32% over 2009.
