Friday, December 08, 2000
Ohio sales-tax revenue below expectations
The Associated Press
COLUMBUS The state's chief financial analyst says he isn't worried Ohio has received millions of dollars less than expected in sales tax revenue for the fifth straight month.
At this point in time, we believe we can manage the state budget through this slowdown, Sam Nemer, Ohio's chief economist, said Thursday. We still have seven months to go in the fiscal year. Yes, we are down a little bit on the sales tax, but we should be OK.
The state's Office of Budget and Management had estimated that Ohio would collect $441 million in sales tax revenue in November, but it received only $409 million, said Gary Gudmundson, spokesman for the state Department of Taxation. From July through November, revenue was $112.5 million below estimates.
The amount generated from automobile sales was better, but still fell below expectations, Mr. Gudmundson said.
The state received $61.6 million from automobile sales during November, $600,000 below budget officials' projections. For the first five months of the fiscal year, automobile sales revenue was $100,000 less than estimates.
The sales tax is an estimate and it's tied to consumer spending. If retail sales do not come in as expected, revenues will be reflected accordingly, Mr. Nemer said. Consumers just aren't hitting the stores like they did in the first part of the year.
Mr. Nemer said he can't speculate on what impact the slowdown could have on the next state budget.
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