BLOUNTVILLE – Across the county, sales tax revenue for August was up 8.9% from August 2020, according to a report from the Sullivan County Finance Department.
That’s over $ 479,000 in growth, year over year, and it starts the county’s 2021-2022 fiscal year on a positive note. This growth includes incomes for towns in the county, which have all increased except Johnson City.
The county’s total for August was nearly $ 5.87 million. This 8.9% growth is an increase from the 7.63% growth recorded in August 2020.
Where does the income come from?
Kingsport continues to produce the majority of sales taxes generated in the county.
The $ 5.87 million, per collection point: Kingsport, $ 3.29 million; Bristol, $ 1.47 million; non-urban parts of the county, $ 969,000; Johnson City, $ 81,000; and Bluff City, nearly $ 61,000.
August growth by location, year over year: Kingsport, $ 205,000; non-urban parts of the county, $ 182,000; Bristol, $ 130,000; Bluff City, $ 5,794; and Johnson City, – $ 43,000.
Where does the income go?
Half of the money goes to local school systems:
The share of Sullivan County schools is $ 1.31 million, up $ 93,000 from August 2020.
Kingsport City Schools’ share is $ 1.04 million, up $ 108,000 from last year.
The Bristol, Tennessee, City schools share is $ 575,000, up $ 41,000 from last year.
Johnson City Schools’ share is $ 11,000, down $ 1,500 from last year.
Each location’s non-school share for the month: Sullivan County, $ 484,000, up from $ 91,000; Kingsport, $ 1.64 million, up from $ 102,000; Bristol, $ 735,000, up from $ 65,000; Bluff City, $ 30,000, up from $ 2,900; Johnson City, $ 40,500, down from $ 21,300.
Sales tax 101
Sales tax revenue goes to localities two months after they are collected by local traders.
June sales tax collections, for example, flow back as revenue to Sullivan County, Kingsport, Bristol, Bluff City and Johnson City – as well as the county’s three school systems – in August.
Sales tax revenue is generated when money is spent on goods and services in businesses in the county and its cities.
Locally, cities and counties finance most of their services through a combination of property taxes and sales taxes.
When a consumer pays sales tax locally, that money is sent to the state, which takes a small share and redistributes it to the county and its towns based on the collection site.
Local options sales tax revenue is split 50/50 – half going to county school systems and the other half to the local government where the collection business is located.
Every dollar of local option sales taxes collected at Kingsport, for example, generates 50 cents for the county’s three school systems (the money is divided based on average daily attendance) and 50 cents for city coffers. .