Retail Sales decline during 2009

Parishwide sales returns to 2007 level

Retail sales in LaSalle Parish fell about 12 percent in 2009, returning to 2007 levels, after hitting a record high during 2008, according to figures just released by the Concordia Sales Tax Collection Agency.

Figures show that retail sales parish wide jumped 12 percent from 2007 to 2008, but fell that same 12 percent from 2008 to 2009. However, retail sales in the Town of Jena fell just 1.7 percent, while the Town of Olla showed a decrease of 9.5 percent in retail sales.

The LaSalle Parish School Board collected almost a quarter-million dollars less on each of its three one-cent sales taxes in 2009 as it did in 2008. Collections for the year of 2009 stood at $1,858,102.38 on one of the sales taxes, or $252,327.10 less than collected a year earlier. This represents a 12-percent decrease. Similar figures were reported for each of the three sales taxes.

In year 2008, sales tax collections parish wide jumped over $2-million for the first time.

Retail sales for the past year stood at $185.8 million, down from $211-million in 2008. Sales during year 2007 stood at $187.9 million, similar to retail sales in 2009.

The drop in retail sales parish wide can be attributed to the overall slowdown of the economy, the reduced purchases of oilfield and timber industry equipment, and the drop in sales of new vehicles.

Officials agree that even though the overall retail sales in the parish are down, they are not suffering as much as most of the nation. The Town of Jena continues to fare better than most because it does not directly reflect sales taxes paid on oilfield and timber industry equipment.

Both these industries took a big hit during the year, with the drop of oil prices for the oil industry, and the closure of timber manufacturing firms, such as the Pineville Mill, during the year.

Although LaSalle Parish has been isolated for the most part from the rest of the country during bad economic times in the past, the current economic crisis is playing a major role in the drop in retail sales locally.

The School Board collected a total of $3,714,869.19 in year 2009 on both of its first two one-cent sales taxes, with 80 percent or $2,971,895.36 earmarked for salary supplements for all school employees and the remaining 20 percent, or $742,973.83, going into the school board’s general fund for other school related expenses.

This compares to a total of $4,218,964.40 collected in 2008, with $3,375,171.52 going for salary supplements and $843,792.88 going into the general fund.

The School Board also collected $1,823,555.93 on its third one-cent sales tax, with all these funds earmarked for construction projects within the school system. This is the first full year the board has collected this sales tax.

Town of Jena

Sales tax collections in the Town of Jena dropped $15,262.92, or about 1.7 percent, from 2008 to 2009, but were still much higher than the 2007 level. This represents a drop in retail sales of about $1.5 million, from $91.3 million in 2008 down to $89.8 million in 2009.

The sales tax collection agency collected a total of $898,120.37 in sales taxes for Jena during 2009, compared to the $913,383.29 collected in 2008.

Since the Town of Jena started collecting the one-cent sales tax in 1999, the amount collected has continued to rise until this past year. Sales in the town represents about 48 percent, or almost half of the total retail sales parish wide.

The town’s sales tax monies are used to retire the debt on the wastewater treatment facility, with any remaining funds being available for sewer, streets or drainage work.

Town of Olla

The Town of Olla collected $143,484.34 in sales taxes on a one-cent sales tax during 2009, a decrease of $15,261.59, or 9.5 percent, from 2008 collections.

The collections in 2009 reflected a total of $14.3 million in retail sales compared to $15.8 million in retail sales in 2008.

Collections for the past two years fell well below the record $182,083.34 collected in 2007. The record retail sales of $18.2 million in 2007 was credited primarily with the major construction project of LaSalle High School that year.

Citizens of Olla approved the one-cent sales tax in 1995 after the Olla Town Council called an election to give voters the opportunity to choose between higher sewer rates or the sales tax.

Law Enforcement

In March 2008, voters in the parish approved a onehalf cent sales tax for Law Enforcement District l, which is the LaSalle Parish Sheriff’s Department.

The tax went into effect on April 1, 2008, with a total of $690,005.46 collected for the eight months of that year.

During the past year of 2009, collections for the sheriff’s department on the halfcent sales tax were reported at $913,702.95.

Since 2009 was the first full year of collecting the tax, there are no figures to compare tax collections for previous years.

Elsewhere in this edition of the paper, readers can find a month-by-month breakdown of sales tax collections for the various bodies, along with totals for the past several years.

This is part of the January 13, 2010 online edition of The Jena Times.

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