Sheridan sales and use tax update brings good news

The City of Sheridan reports sales and use tax revenue for the month of April was up 1% over the same time period last year. 

As sales and use tax revenue reports for the month of April show city officials the effects of the COVID-19 shutdown on municipalities throughout the state, Sheridan received good news in the form of increases over the previous year. 

Although the year-to-date sales tax dropped by .3% from 5.2% in the last few months, year-to-date sales tax remains 4.9% higher than the same time last year, 2.4% higher than the city had budgeted. 

Monthly internet sales tax shows a 138.5% increase over last year and the year-to-date amount is up 153.6%, that’s an increase of over $178,000 from the previous year.  

During an appearance on Sheridan Media’s Public Pulse, city councilman Thayer Shafer told listeners that restrictions kept Sheridan residents at home, the most likely reason for the internet sales tax increase.

The reports are welcome news in city hall. City council has prepared their FY 2021 budget based upon a projected 25% reduction in sales tax due to the COVID-19 pandemic. Council requested department heads reduce their internal budgets by 9%. 

The FY 2021 budget will be presented during the June 15, city council meeting. City officials remain unsure if any federal or state funding will be allocated to offset revenue losses experienced by municipalities.