Sales & use tax up in tri-county area

YOUNGSTOWN

Mahoning County saw a 45 percent increase in its tax revenue from 2010 to 2015.

Part of that increase is because of the 2015 tax rate increase, but the other part comes from increased consumer spending.

Large purchases – such as new vehicles, clothes and houses – all come with a price tag that includes a sales and use tax.

All have fueled the consistent increase in sales and use tax revenues for the three Mahoning Valley counties over the past five years.

“I read it as a reflection of the sound economy,” said George Mokrzan, director of economics at Huntington Bank. “I think it is a reflection of consumers doing better. It reflects growth.”

Sales and use tax is on most items, including employment services, lawn care, fitness memberships and dry cleaning. Several items are exempt, including food and prescription medication.

The revenue generated goes to the county governments.

Last year, Mahoning County’s sales and use tax revenue went up to $39.9 million from $33.9 million reported in 2014, according to data released by the Ohio Department of Taxation. The growth shows the 0.25 percent increase in the county’s tax rate that took effect April 1, 2015.

In Trumbull County, the 2015 sales tax revenue was $25.8 million, up from the 2014 revenue amount of $24.9 million. .

In Columbiana, where the tax rate is 1.50 percent, the sales tax revenue increased from $16.3 million to $16.8 million.

For more on the situation, read Thursday's Vindicator or Vindy.com.