Members of the Boone County Commission addressed the county’s shrinking sales tax revenue as its primary concern during the first public hearing for the 2020 proposed budget Tuesday night.
The sales tax, which accounts for approximately 68% of the county’s total revenue, is expected to decline 1.75% from 2019. In her proposed budget, County Auditor June Pitchford estimated $47.6 million in sales tax revenues.
During the hearing at the Roger B. Wilson Boone County Government Center, Commissioner Fred Parry said the decline “has a significant impact on the services we’re able to provide the citizens of Boone County.”
Pitchford attributed the drop to untaxed online retail sales.
To compensate for lost revenue, Pitchford is proposing a two-cent increase on property tax, which would generate about $600,000. That would raise the total property tax to 19 cents, still below the county’s authorized 31 cent maximum.
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