Amid pandemic, Meridian sees $119K drop in tax revenue in March

Published 5:43 pm Friday, May 15, 2020

With businesses across the city impacted by COVID-19, Meridian has lost approximately $119,000 in sales tax revenue, according to city records comparing March 2019 to March 2020.

Records show sales tax revenue went from $1,234,778 in March 2019 to $1,115,132 in March 2020, a difference of about 9 percent.

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Year-to-date sales tax revenue has decreased by $27,280, or 0.31 percent from last year.

Sales tax revenue was higher this March than in January and February, Mayor Percy Bland said.

City records show food and beverage tax revenue dropped about 35 percent, from $304,490 in March 2019 to $195,887 in March 2020.

Year-to-date food and beverage tax revenue has decreased by $75,923, or 3.95 percent from last year.

Food and beverage tax revenue does not go into the city budget, but is used to pay off a bond and other expenses for The Mississippi Arts + Entertainment Experience, according to Chief Financial Officer Brandye Latimer.

Bland said that amid COVID-19, city hotels have gone from 75 to 80 percent occupancy to 20 percent occupancy.

On March 24, Bland announced an order closing non-essential businesses and restricting restaurants to curbside and delivery service.

While many businesses have been allowed to reopen with restrictions and dining rooms are back open at reduced capacity, Bland is looking ahead to June, when the city will see the sales tax revenue total for April.

“We’re all keeping our fingers crossed because this next month, what we’ll see from now until June 15 … will play big into what we have to do as far as to possibly making major decisions on employees and on services,” Bland said in a Facebook update Friday.