City evaluates revenue after smoking ban
Julie Williams
Issue date: 11/15/07 Section: News
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A summary of the fiscal impact of the smoking ban distributed at Tuesday's City Council Study Session shows a 5-percent decrease in sales tax and a 2-percent decrease in gross receipts. Of the 32 businesses that submitted their taxes to the department of revenue, 20 saw an increase in gross sales, and 17 of 28 that submitted information showed increases in sales tax collection, according to the study session summary.
City Manager Mari Macomber said the businesses that were affected by the smoking ban saw an overall sales tax decrease of $2,000, and a gross receipts decline of 2 percent during the first quarter, which is July through September. She said not all businesses submitted their tax information.
"If you look at the [first quarter] numbers, you'll see some businesses are up significantly, some are down significantly," Macomber said. "So what's the reason for it? Is some of it operational? I don't know."
Macomber said sales tax information also has been collected from membership organizations in Kirksville.
"As a total from '06, '07, they've seen a decline in their sales tax," she said. "… We're not talking a lot of money, we're talking $190."
Macomber said she suggests the City Council look at the numbers again after the next quarter because she said she thinks it is too early to draw any conclusions from those figures.
"The businesses vary tremendously - whether it's a restaurant or a bar, the type of food that is sold, whether it's more of a sandwich versus sit-down - so I think you're going to see differences in looking at those dollar amounts," Macomber said.
Councilmember Tom Mayer echoed Macomber's thoughts.
"As a city, we should consider to monitor on a quarterly basis," he said.
Macomber also said the sales tax in Kirksville was up 9 percent.
Sophomore William Wolfram said he likes the smoke-free environment in Kirksville but thinks it should be a business owner's choice to implement a no-smoking rule.
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Viewing Comments 1 - 1 of 1
John
posted 11/15/07 @ 9:28 AM CST
Question:
How much money does it cost the city to enforce the ban?
Because it seems like that should be factored in there too.
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