County auditor: 2022 sales tax revenue impacted by inflation
Dec. 23—JEFFERSON — Total collections for Ashtabula County's sales tax were up 4.6 percent over 2021, which was up 11 percent from 2020, according to the Ashtabula County Auditor's Office.
Even so, County Auditor David Thomas said he's cautious given the average inflation numbers saw an 8 percent increase over last year.
J.P. Ducro IV, president of the Ashtabula County Board of Commissioners, said he's excited to see the county growing and economic confidence still increasing despite some financially hard times this year.
Ashtabula County collected $13.9 million in sales tax for fiscal year 2022, which covers sales from October 2021 to September 2022, a $615,000 increase over collections in 2021, records show.
Ashtabula County's $13.9 million for 2022 overtook 2021 as the highest year in collection moving 2020 to third place at $11.9 million. The lowest over the past decade was in 2012 where the county saw sales tax revenue drop to $9.2 million, records show.
The Ashtabula County portion of sales tax is 1 percent, while the state collects in 5.75 percent for a total of 6.75 percent. Comparatively, Cuyahoga County's portion of 2.25 percent is the region's highest with Lake County at 1.25 percent and both Geauga and Trumbull also at 1 percent.
"I remain cautiously optimistic about these figures as they show more folks are coming to Ashtabula County and we continue to be a good place to work and live," said Casey Kozlowski, county commissioner.
The largest areas of growth were in traditional sales, motor vehicle sales and statewide master. Thomas pointed to these descriptions as being a mix of local and national retail companies.
"Historically, and the same applies for 2022, our largest revenue months are May, June, and July," Thomas said. "This is another example of how tourists and out of town visitors directly contribute to our county government services through sales tax."
Ashtabula County's tourism base, which saw an increase in 2021 and 2020, greatly contributes to sales tax as out- of-town guests cover a portion of sales tax revenue, Kozlowski said.
The county government relies on sales tax to fund operations and provide services. Thomas estimates that roughly half of the revenue used for the general fund comes from sales tax while less than 10 percent is received from property taxes, making sales tax an essential part of operations for the county. The general fund funds the Sheriff's Office and the courts in addition to parts of nearly every other county office.
Thomas believes inflation and the economic hardships being faced across the nation contributed to four months of decreased sales tax revenue and a much slower growth than previous years.
"We're seeing the impact no doubt of higher gas prices and less available spending for residents and tourists," he said. "When our revenue growth was less than inflation, that is not good for the county budget nor our residents."
