Categorized | News

City sales tax surpasses $10 million

germantown_seal_1438977128827_22442762_ver1.0_640_480

Germantown received $900,713 in sales tax revenue from the state in May and $847,180 in June resulting in a year end total that exceeded the annual budget by more than 11 percent.

This year has been nothing short of record-breaking as city annual sales tax revenues surpassed $10 million for the first time in history.

“We are thrilled with the continued increase in sales tax revenue. It shows a real commitment by our residents and visitors alike to shop and dine locally,” said Mayor Mike Palazzolo. “Sales tax growth also reflects the strength of the local economy and demonstrates the benefit of the development taking place in our community.”

Germantown receives a higher percentage of tax revenue from purchases made within the city.

With a very limited supply of vacant land in the city, recent development activity has focused on five established targeted economic development districts. Implementation of updated zoning codes in three of these areas encourages investors to develop property to its highest and best use. The results are vibrant economic areas and preservation of the city’s neighborhood-focused heritage.

The city also consistently maintains high retail and office occupancy rates, currently 94 percent and 97.9 percent respectively. City initiatives are focused on retaining, expanding and attracting business that support economic sustainability and ultimately help reduce the City budget’s dependence on property tax revenue. In fiscal year 2019, property tax revenues make up 58 percent of budgeted city revenues.

Sales tax accounts for 24 percent. The strong sales tax collection helps to take the pressure off Germantown residential and commercial property owners.

Leave a Reply

Your email address will not be published. Required fields are marked *