Alva sales tax revenue continues decline

 

The City of Alva is still coping with decreases in sales tax revenue. Sales tax comes from sales inside the city limits. The city also receives some income from use tax, which is levied on items sold outside the city limits but bought for use inside the city. Sales tax amounts have fallen significantly from levels experienced during the height of the oil and gas boom in the area.

The June distribution of sales tax collections by the Oklahoma Tax Commission mainly represents April sales. Alva received $310,200.91 compared to $349,776.34 a year ago, an 11.31 percent decrease in revenue. Use tax was down even more with Alva receiving $14,439.12 compared to $25,119.52 a year ago. Alva's sales tax rate is 4.25%, and part of that is earmarked by the voters for the hospital, the recreation complex and NWOSU scholarships.

Other Woods County towns also show sales tax decreases. Freedom, with a 2 percent tax, is down 45 percent. Freedom received $2,677.28 in June 2017 compared to $5,886.56 a year ago. Freedom does not receive use tax. Waynoka had a decrease of 8.74 percent, collecting $2,308.80 this month compared to $2,529.99 a year ago. Waynoka has a sales tax rate of 4 percent. Waynoka use tax was also down a little with $2,308.80 received this month compared to $2,529.99 a year ago.

Woods County has a half-percent (0.5 percent) sales tax. The county showed a 2.47 percent decrease, receiving $76,047.32 this month and $77,975.39 a year ago. Use tax collections in the county were down considerably with $2,686.10 this month compared to $17,851.02 a year ago.

To the east in Alfalfa County, sales tax is down from last year but by a lesser amount. Alfalfa County collected $164,131.05 in sales tax this month compared to $164,278.21 last year, a decrease of only 0.09 percent. Alfalfa County levies a 2 percent sales tax. However, use tax was down by more than half.

Major County to the south is showing increased sales tax collections. In addition, the county has gone from a rate of 0.75 percent to 1.25 percent. This June Major County received $202,468.18 in sales tax compared to $50,567.94 last June. Much of the increase was due to the higher tax rate, but after adjusting for that rate, Major County shows a modest 2.4 percent increase in local tax receipts from businesses.

Fairview, the county seat of Major County, had an increase of more than 31 percent in June sales tax collections. With a 4 percent sales tax rate, Fairview received $141,716.47 this month and $107,650.92 last year at this time.

 

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