Sudden surge in tax check creates smiles|[3/25/05]

Published 12:00 am Friday, March 25, 2005

Revenue from tourism-related taxes for the first month of 2005 showed an increase of 45.7 percent over last year, leaving VCVB officials puzzled but not complaining.

The Vicksburg Convention and Visitors Bureau received an $88,966 check from the state Tax Commission in March for 2 percent hotel and restaurant tax based on sales recorded in January. For the same month in 2004, the VCVB received $61,045.

Members of the VCVB board meeting Thursday said they couldn’t explain the sudden increase, “but hopefully that trend will continue,” said chairman Curt Follmer.

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The January 2004 revenue was up about 7 percent over 2003.

Members suggested that milder weather during January may have contributed to increases in tourism. Some local attractions and hotels had also increased rates which would increase tax revenue, said board member Lamar Roberts, operator of the Vicksburg Battlefield Museum.

The VCVB generates most of its funding from the 2 percent hotel and restaurant tax that last year generated about $814,451. That was up about $56,316 from 2003. In turn, the money is spent on staffing and operating a welcome center, advertising the city and preparing and distributing guidebooks and brochures.

“It could be just a fluke, but we’ll take it,” said board member Eric Biedenharn.

Businesses required to collect the added tax send the money to the Tax Commission along with general sales tax collections. State officials perform the calculations and send a check the following month.

So far this year, the VCVB received checks for the last two months of 2004. Both were about 3 percent above last year.

While the VCVB checks are up, the city’s tax collection check for January showed a 5 percent decrease from last year. Collections for the month went from $684,508 in 2004 to $649,705

Overall, however, the city’s sales tax collection is up about 6 percent, according to figures reported by the state.