Sales Tax Collection Revenues Up for Dothan

By: Demetria McClenton Email
By: Demetria McClenton Email

After months of bad news, Dothan City Officials have something to cheer about.

Sales tax collection numbers were released Monday morning, and the city is in the black for the month of October.

Official numbers show an increase in sales tax collections, but officials are remaining "cautiously" optimistic.

"We're proud that it is and hopes that it continues,” said Mike Schmitz, Mayor of Dothan.

"Sales tax revenue is all about retail numbers on what people spend at a grocery store for clothing and things of that nature," said Taylor Barbaree, Dothan City Commissioner, District 5.

Sales tax revenue is up by nearly $115,000, city officials hope to continue this trend throughout the next few months.

“During the holiday season is when our biggest sales tax revenues happen so we want to see what happens then,” said Mayor Schmitz.

“When you look at the situation with our budget being somewhat increased by the positive sales tax numbers, we're able to forecast better what we might be able to do with infrastructure projects,” said Barbaree.

The positive numbers shows consumer confidence in Dothan's economy, but Mayor Schmitz says we still need to be guarded.

"We'll see what happens in the next couple months before we start getting too excited.

There's a lot more jobs the unemployment rate went from 10% to 7.8%. So things little by little are getting better."

“I do think people are more optimistic with their spending. I would hope the worst part is over,” said Barbaree.

“We have to be cautious because 4 months out of the 26 that we've had an increase,” said Mayor Schmitz.

“The city of Dothan is poised either way we have a conservative budget but at the same time the sales tax revenue that comes in goes to provide services for our citizens,” said Barbaree.

Commissioner Barbaree was quick to add he doesn't believe we are out of the recession.

But, he says infrastructure projects like water, sewer, and roads will benefit from the increased tax revenue.

The City of Dothan is under budget by more than $80,000 at this time.

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