The budget hearing in Wicomico County was held last week by Wicomico County Executive Rick Pollitt. He alludes that our county revenues have been dramatically diluted by our citizenry's inception of the revenue cap.
VOICE has been in contact with the Maryland Comptrollers office for several years now seeking to devise a formula so that we - the people - might actually see what is being returned back to our localilty.
Here's why we need this information - take a look at the significant increases in our revenue stream. You won't hear this from our Politicians - especially those located across the Pond. Nor have any of our county residents seen this information on any of the supplemental budget information sheets.
Question is - where is all of the extra money gone - especially in the good times.
Sales Tax Collections in Wicomico County
2003 - $55,487,221
2004 - $60,701,335
2005 - $68,168,174
2006 - $76,160,447
2007 - $76,254,189
2008 - $75,892,624
What's interesting to note is that even with the sales tax increase in 2008 from 5% to 6% our sales tax collections actually went down. While I concede part of the reason is our current recession, but, could it also be that demand destruction from over taxation has finally set-in?
Here at SBYnews we give you the unbiased facts. In these economic times of smoke and mirrors we feel that you the citizens need this unfiltered information so as to make informed decisions.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
My guess onthe sales tax is that internet sales, which are tax free, are having an impact. I wonder if the state has considered whether no sales tax and the increased sales volume that would be generated would more than offset what would otherwise be "lost" and would serve as an incentive for additional businesses to locate in MD.
ReplyDeleteI have not witnessed such in-depth factual coverage from any other local media source since I've been living here - 65 years now.
ReplyDeleteToday's DT article on Wicomico's budget paints a completely different picture than what is presented here on SBYnews.
I hope you keep-up the good work of keeping our citizens informed.
This information is very interesting in light of today's DT featured article.
ReplyDeleteI watched pack14 and must admit all I seen mostly was department heads.
ReplyDeletethanks joe and beezer, i guess the waste of taxdollars fineran forget to mumble this over the airwaves . he needs to take a hike. with sby news a pio job is history in wico. typical liberals want to cut the mules in the trenches first rather than do away with top brass fat.executive form of government has done nothing but cost taxpayers more.if they have made any contributions to welfare of wico i would like to hear what.
ReplyDeleteI read in The Daily Times today and I can't believe that Pollitt is considering increasing the recordation tax and putting in a transfer tax under these economic times. What a way to discourage more transactions. I hope the council will say no to his request if he does go through with this. By the way, I also attended the budget hearing and heard someone get up and ask about the employees taking a reduction in pay for a short time to help balance the budget. Mr. Pollitt didn't seem to be interested in that and yet how is it different that he is willing to tax the people with more taxes or the employees taking a reduction temporarily. This is the democratic way though. Tax and spend.
ReplyDeleteShopping in tax- free Delaware
ReplyDeleteDoesn't the sales tax go to the state then must trickle down? Regardless I don't want the cap touched, they can increase it 2% every year, that's enough.
ReplyDeleteThe increase in sales tax revenues over the years? If the county has questions they should ask their governor!
That's an increase of 36% or an average of 6.0% a year. Have individual salaries, the CPI or county population increases coincided?
ReplyDeleteI don't think so. Any family or business that enjoyed an annualized increase of 6.0% over the last six years would be most grateful. It is a shame that county leaders are unable to live within this increase.
The 20% sales tax hike hits the nail tight on the head - 2003 = $55,000,000 x 20% = $11,000,000 increasing sales tax revenue from of $55,000,000 to $66,000,000 and then some, so sales must still be doing good here if sales tax revenue is $75,000,000. Up $9,000,000 even after the tax hike.
ReplyDeleteGood job, now just do a better job spending the money and waste less. Cut bonus' and have a hiring freeze. Get over it, times are tough all over.
My spin would be that the figures you quote are "collections". I'm a business owner and am several months behind on sales tax this year, whereas I was not last year. I'm sure many other local businesses are as well, times are tough, the money collected for sales tax ends up being used for payroll instead.
ReplyDeleteI read a month ago that the Wicomico hotel room tax hadn't been paid for since June for 4 local hotels here in Salisbury.
I'm lucky I'm located in Wicomico at least not city of Salisbury, but both need to lower their tax burden. I'd much rather be back in Sussex County for sure, if Delmar, DE was just across Leonards Mill Pond, not 3 miles north, I'm telling you Salisbury would be a ghost town. Dumbest thing Target did was not open a Super Target just across the state line to compete with Wal*mart. Alot of businesses would have followed.
12:32PM
ReplyDeleteActually over the next five years from 2003 it would be an increase
of 7.2% annualized!
With Maryland's proposal to initiate a Fair Share Health Act on the biggest of all retailers - Wal-mart - its no wonder they haven't done anything with their land in Somerset.
ReplyDeleteAnd I'll just bet you that they are already looking north of the border into Delaware with Maryland's latest Socialist move.
Response to 9:42 Post
ReplyDeleteI don't think The Daily Times has as 'seasoned staff' in comparison to SBYnews. The DT kind of just takes the news from its sources without closely checking out the minute details. It is obvious that there are stark differences in the coverages between SBYnews and The Daily Times. As for myself, I rely more more on SBYnews as they have 'no dog in the hunt' so to speak.
10:41 got it right! With the increase in sales taxes, there is more incentive than ever to cross the state line, and do your shopping in sales-tax-free Delaware.
ReplyDeleteIf they really want more revenue, then they should lower the rates, to encourage more economic activity here.
ALso, did anyone see that SU has bought the (fairly new) Noland Co building? (Couple of million $$$ +?)
How much property taxes are going to be mitigated from that transaction, since the state refuses to pay taxes on property it owns?
Is the Bd of Ed still giving a 10% raise to all retiring employees for their last three years? What a ripoff.
ReplyDeleteGoogle "Laffer Curve" to learn from recent history how over-taxation leads to reduced tax revenues.
ReplyDeleteAlso called "Robbed Peter to Pay Paul."
ReplyDeletePollitt blames the lack of MORE taxes for not doing his job efficiently. He needs to be removed under lack of confidence. Fineran thinks his job is to cover the mistakes of their department instead of correctly informing the citizens he works for. I say fire them both now, their salaries will fill the void.
ReplyDeleteWhy is it everyone wants to talk about SU buying property and removing it from the city tax rolls but no one ever mentions that property is regularly annexed into Salisbury and therefore onto the cities property tax roll?
ReplyDeleteSales tax collections go to the state. They are not retained by the County nor is there any gurantee that the state will return them to each county ratably.
ReplyDelete