The City of Lawrence has now received nine of its 12 monthly sales tax checks from the state of Kansas. Thus far, the city’s sales tax collections are up 9.4% compared with a year ago. That is both a historically high number and a below-average number. In the past, a growth rate of 6% or 7% would be a great year for Lawrence sales tax collections. So, if Lawrence finishes the year at 9.4%, it would be extraordinary. But, it is also true that the number is currently below average. The average growth rate for local sales tax collections across the state is 11.5%. The reason for the strangeness, of course, is … inflation. As inflation has increased the price of most goods, sales tax collections have naturally gone up. Consumer demand has not increased by nearly 10% in Lawrence.
Source: LJWorld
