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Nebraska City News-Press - Nebraska City, NE
  • NC prepares to cash in on record-high sales tax

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  • In two months, Nebraska City will collect a record amount of sales tax for the current 2013-2014 fiscal year.
    The city's fiscal year begins on Oct. 1 and ends on Sept. 30.
    City Clerk and Treasurer Arnold Ehlers said that currently there is $1.6 million in sales tax that has been collected.
    The city had originally budgeted for $1.5 million in sales tax for the current fiscal year..
    That's astounding news for the city because Ehlers said that sales tax contributes to about 20.3 percent of the city's budget. The city collects 1.5 percent of the total taxable sales.   
    "It allows us to put surplus funds into the treasury and additional money into reserve funds," Ehlers said. "If the city had a major catastrophe we can pay the bills for a couple of months."
    The city clerk can't pinpoint as to why there is a record-high sales tax.
    But some of the reason could be because of the increase in the prices of goods and automobile sales.
    "Automobiles are a very expensive purchase in one's lifetime," Ehlers said.
    The record number does reveal that residents are shopping locally because closure of U.S. Highway 75 North on March 31.
    "To me that might indicate that most of our trade comes from south of Nebraska City," Ehlers said. "It doesn't appear that it's coming from very far away."  
    Ehlers said the city collected $1.86 million in sales tax for the 2012-2013 fiscal year, with $186,000 stemming from automobile sale tax. With two more months to go, Ehlers believes that the city is well on it's way of collecting a record-high sales tax.
    Ehlers said the top months for sales tax collection this year were October, $166,614; March $153,940; and July, $163,656.
    "Those were the highest ever in our history," he added.
    The second-highest months were December, $167,588; April $170,602; May, $163,100; and June $176,662.
    "Out of the the 10 months that we have in our books, those are the highest or second-highest in our history since 1996," Ehlers said.
        
        
        
       

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