Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 13, 1993 TAG: 9302130069
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE: LENGTH: Medium
TECHNICALLY, A SALES DROP
Despite reports of renewed consumer confidence and spending at Christmas, Virginia and its localities collected less in sales taxes in December 1992 than in December 1991, according to a report released Friday.The state Department of Taxation blamed a technicality in the way the figures were collected for the apparent drop.
Some December sales spilled over into January because supermarket-chain reports were filed after the first of February, according to John Layman, an economist in the Taxation Department.
For most retailers, sales must be reported by the 20th of the month following the month in which the sales are made. But supermarkets have a 10-day extension. And last month, because that 10-day period ended Jan. 30 - a Saturday - the reports were not filed until February.
That means the state reported declining sales despite widespread surveys by retailers and others showing increased business volume for the Christmas season.
As a result of the carryover, January sales probably will be unusually high, Layman said.
The new report shows statewide sales in December were down by 5.3 percent compared with December 1991. Lower sales were reported in 18 of 30 Western Virginia localities.
Roanoke's sales declined by $5.3 million, or 3.8 percent, according to the new state figures.
Despite the numbers, shopping reports indicated increased Christmas sales for merchants, said Jim Grisso, Roanoke's acting finance director, but sales taxes collected were down 3.8 percent, the same figure reported for sales.
In the first seven months of the city's fiscal year, sales tax collections were running 5.07 percent ahead of 1991, he said. Collections were 1.7 percent lower than the budget estimate.
"The much heralded business recovery continues to tease us," Grisso sald. His prediction is that the economy "will bop along with a growth of 2 to 3 percent, not much more than inflation, pretty flat" for the foreseeable future.
Increased buying in Roanoke County and Salem raised the Roanoke Valley sales total for December 2 percent above last year.
Although Roanoke's taxable sales total was down by $5.1 million, the December figure for the valley rose by $4.6 million.