MuskogeePhoenix.com, Muskogee, OK

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August 25, 2010

Tax collection boost begs cautious optimism

— Muskogee’s sales tax collection showed a significant bump for June — about $60,000 over the same month last year.

Decreases in general fund sales tax collections and other revenues prompted the city to trim $1.8 million in spending for fiscal year 2011.

The fiscal year began July 1.

We need to see a sustained increase in collections before we boost the budget again.

Hopefully it’s a sign of an upward trend. But we recommend caution before pulling out the corks on the celebratory sparkling wine.

First, it’s still about $10,000 behind 2008 collections. Second, a majority of the boost most likely can be attributed to the Bassmasters Elite Series Sooner Run, which was held in June.

For example, Muskogee’s hotel-motel tax saw a massive increase because of the Bassmasters Elite Series Sooner Run.

Sue Harris, executive director of the Greater Muskogee Chamber of Commerce said the hotel-motel tax collection more than doubled from $26,523 to $57,970.

“Our feeling was the hotel motel tax increase was from the Bass tournament,” she said.

However, Harris cautioned that the monthly report is not a true complete representation of collections, because some motels pay their taxes monthly and others do it quarterly.

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