Greenwood A&P revenue trending higher in 2012

by The City Wire staff ([email protected]) 93 views 

Greenwood Hospitality Taxes for the first nine months of 2012 account for $77,806, according to the city's latest advertising and promotion (A&P) tax report.

However, there were a number of businesses left off for September receipts, so the final tally could increase as those numbers become available.

As is, the monthly average stands at around $8,645 in collections. If this average holds steady through the end of the year, the city would witness a slight increase against 12-month totals for 2010 and 2011 with an estimated $103,741.

The actual increase will likely be higher than this as the September report showed only 12 of 28 participating businesses having paid. It was not clear as of Thursday night (Nov. 1) whether the omitted businesses were due to reporting or if the accounts were past due.

In 2010, the Hospitality Tax brought in $99,998. The following year, it ticked upward to $102,949. Looking at complete totals through the first eight months of the year, the city grossed $72,920 from the Hospitality Tax, an average of $9,115 per month.

If final numbers for September hold this momentum and carry over to the last three months of the year, the estimate for 2012 could be as much as $109,380, an 8.6% boost from 2010 and an increase of roughly 5.9% from 2011.

Looking at the August total of $9,195 – the last completed month on the report – the numbers show an increase against August 2010 ($8,663) and August 2011 ($8,755).

For Sharla Spoon, interim city clerk and treasurer, the findings are consistent with expectations.

"It seems like they're (tax collections) staying steady. I did not feel the drop in the economy had affected the frequency that people are going out to eat," Spoon said, adding that most of the city's Hospitality Tax is collected through restaurants.

Of those restaurants, McDonald's has consistently led in the amount of taxes paid since 2010. Through September, the franchise has paid in $16,000, more than any of the other businesses on the list, and about 20.6% of total collections for the city.

The Greenwood City Council enacted the 1% Hospitality Tax for restaurants (3% for lodging) in July 2007. Since Jan. 1, 2008, the city's A&P Commission has overseen distribution of revenues from the tax.