Five months into the fiscal year, gaming and sales tax collections in Vicksburg — which account for nearly half of the city’s operating budget — are each down by nearly 8 percent compared to fiscal year 2009.

While Mississippi’s 30 state-licensed casinos collectively posted a 2.7 percent increase in winnings from gamblers in February compared to a year ago, it appears Vicksburg’s five casinos did not fare as well as others in the state. Gaming tax revenues paid to Vicksburg, Warren County and the local school district were down by 21.9 percent in February — to $658,569, from $843,487. 

The city’s 18.5 percent share of sales taxes collected in the city limits netted $556,997 in February, down from $606,755 in February 2009. Fiscal year to date, sales tax collections are at approximately $3.18 million, down 7.65 percent. The city’s cut of local gaming tax collections through the same time period is approximately $2.6 million, down 7.7 percent.

“We went into this budget cycle knowing that revenues were going to be down significantly. We made the adjustments, and we continue to watch our revenues closely each month,” Mayor Paul Winfield said Wednesday.

The city’s operating budget is about $31.5 million for the year that ends Sept. 30. Under Winfield’s direction, the city has taken steps in recent months to rein in spending, including limiting capital purchases by department heads and travel outside the city. 

City Accountant Doug Whittington anticipated gaming and sales tax shortfalls when he drew up the budget last year, but so far the collections have been even slightly lower than he expected. The city’s budget projects gaming tax revenues of $6.77 million this fiscal year, and sales tax revenues of $7.28 million. Gaming tax revenues are off 3.2 percent compared to budget expectations, and sales tax revenues are off 1.2 percent.

Winfield said he’s optimistic the projections will hold.

“As I’ve said before, Vicksburg is still faring better than most other cities in the state. I’m optimistic about revenues going forward,” he said. “I’m confident our merchants are going to hang in there and things are going to get better.”

Collectively, gaming and sales tax revenues netted approximately $14.25 million for the city last fiscal year, exceeding its budget expectations by about $192,000.

Vicksburg’s five casinos pay a 3.2 percent revenue tax to the State of Mississippi that is divided locally, with the city getting 65 percent, Warren County 25 percent and the school district 10 percent. A second revenue tax is an 0.8 percent share of the state’s 8.8 percent revenue tax. It is split based on population proportions between Vicksburg and Warren County.

Each casino is also required to pay $150 for each gaming device annually to the city. Gaming tax revenues in Vicksburg were off by 3.8 percent in fiscal year 2009, compared to the previous fiscal year.

The other half of the city’s revenue comes from property taxes.

Contact Steve Sanoski at ssanoski@vicksburgpost.com