Friday, January 5th, 2024

Sales tax revenue hits record

Area consumers continue to spend, unfazed by prices

By William Kincaid
Photo by Paige Sutter/The Daily Standard

Employee Bailey Snyder, St. Marys, checks out a customer at Effie's Boutique along West Spring Street in St. Marys on Thursday afternoon.

CELINA - Despite higher prices for goods and services due to inflation, consumers continued to spend in 2023, driving Mercer County sales tax collections through the roof to $11.65 million - a new record for the 13th consecutive year.

"We just continue to break records," said county auditor Randy Grapner. "We have inflationary increases that's playing a big part here. The price of goods sold has increased, the sales taxes associated with those sales have increased. So it appears to be a natural progression."

In addition to higher prices, the county's low unemployment rate also factors into the high sales tax revenue, Grapner pointed out.

November's unemployment rate was 1.9% in Mercer County, the lowest it's been since April. The county unemployment rate in 2023 was highest in January and February at 2.6%. Nevertheless, the county still had the lowest unemployment rate in the state during those two months.

"In my history, I go back to the Alan Greenspan days of him managing unemployment between 4 and 5%," Grapner said. "Well, now we're at 1.9%. I think that's extraordinary. Everybody's working, which I think contributes absolutely to this."

Taking a cue from county community development director Jared Ebbing, Grapner highlighted the area's strong work ethic and its impact on sales tax revenue.

"We have jobs. We want jobs. We have a heavily agricultural market place. They are all working," he said.

The county sales tax rate is 1.5%; 1% goes directly into the general fund while 0.5% is used for maintenance and operation of the jail/sheriff's office, west of Celina. The combined state and county sales tax rate is 7.25%.

Photo by Bill Thornbro/The Daily Standard

Mercer County total sales tax revenue for the general fund 2013-2023. Source: Mercer County Auditor.

Mercer county garnered $7.76 million in general fund sales tax revenue in 2023, a $281,189 increase from 2022. The jail sales tax brought in $3.88 million, a $140,541 upswing.

Together, total sales tax revenue in Mercer County for 2023 was $11.65 million, compared to $11.23 million in 2022, $10.63 million in 2021 and $9.5 million in 2020.

The amount of sales tax revenue reported each month reflects spending from about two months earlier. Sales taxes are collected by the state and sent back to the county.

Also, the county's share of casino tax revenue for 2023 came in at $608,992.77, an uptick of $3,385.20 from the prior year. It amounts to the biggest take of casino dollars since the county began receiving such payments in 2012, Grapner's data indicates.

Roughly $5.65 million in casino tax revenue has poured into the county since 2012, giving county commissioners another revenue stream with which to balance the budget each year. The money is moved into the general fund for operating expenses.

"They (commissioners) can disburse these dollars any way that they wish," Grapner said during a previous interview.

The county since 2012 has collected $5.65 million from the casino tax. It hauled in $608,992.77 in 2023, $605,607.57 in 2022, $558,492.17 in 2021, $391,565.05 in 2020, $499,941 in 2019, $488,734 in 2018, $477,114 in 2017, $484,177 in 2016, $473,282 in 2015, $490,093 in 2014, $462,624 in 2013 and $106,797 in 2012, Grapner's figures show.

Photo by Bill Thornbro/The Daily Standard

Mercer County total casino revenue 2013-2023. Source: Mercer County Auditor.

Ohio voters in 2009 approved a constitutional amendment allowing casinos to set up in Cleveland, Toledo, Cincinnati and Columbus, according to the Ohio Department of Taxation. The state collects a 33% revenue tax from licensed casino operators.

The state allocates the revenue to numerous entities - 51% for counties that is distributed quarterly to 88 counties based upon population; 34% into the county student fund distributed to all school districts based upon student populations; 5% into the host city fund for Cincinnati, Cleveland, Columbus and Toledo; 3% into the Casino Control Commission fund; 3% into the State Racing Commission fund; 2% into the law enforcement training fund; and 2% into the problem casino gambling and addictions fund.

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Total gross casino revenue in Ohio during 2023 was $1.01 billion of which 33% - or $334 million -was taxed and distributed statewide based on the allocation formula, according to Ohio Casino Control Commission.

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