Trenton City’s sales tax revenue has seen a decrease, while income from the local use tax has significantly increased in the first three quarters of the city’s fiscal year.
The combined city sales tax revenue has fallen by nearly $43,000, whereas local use tax revenue has surged by nearly $114,000. This results in an overall growth of more than $71,000 from these taxes during the nine months of May through January, compared to the same months a year ago.
The local use tax, applied to purchases from out-of-state vendors and delivered to Trenton, has generated nearly $309,000 thus far during Trenton’s fiscal year. This marks an increase of more than 58 percent compared to last year at this time and is used for general purposes.
Trenton has five separate sales taxes on retail purchases, including a city sales tax for general purposes which has produced more than $661,000, down more than $20,000 compared to last year. The city sales tax for capital projects has generated nearly $331,000 in the May through January period, showing a decrease of more than $10,000 from the previous year. Income from the Trenton city sales tax for parks is nearly $308,000, a decline of over $5,400. The transportation tax has produced over $230,000, a decrease of nearly $3,800 compared to last year at this time. Finally, the Trenton city sales tax for fire department needs has generated more than $153,000 in the nine months, down more than $3,000 compared to last year.
Percentage-wise, income from the city sales taxes for general purposes and capital projects is down three percent, and receipts from the city sales taxes for parks, transportation, and fire department needs are down less than two percent.
The city sales tax rates on retail sales in Trenton are one percent for general purposes, one-half percent each for capital improvements and parks, three-eighths of one percent for transportation, and one-quarter percent for fire department needs, totaling nearly 2.625 percent.
Trenton’s local use tax is also nearly 2.625 percent, with the rate determined by adding the various city sales tax rates together.
