Sales tax revenue is up, but officials still wary of budget cuts

YOUNGSTOWN

Despite increases in sales and use tax revenue – a main source of income for county governments – officials are still watching their budgets with concern for more impending funding losses.

The Medicaid managed care organization sales tax, MCO, will expire June 30 because of a federal rule that says the state cannot impose the tax on Medicaid MCOs if it does not impose this tax on other MCOs.

“Any kind of increase [in sales and use tax revenue] is a positive sign,” said Dave Ditzler, chairman of the Mahoning County commissioners. “But the unfortunate part of it is each year they continue to eliminate portions of the local government fund. Now, we face the MCO loss.”

County sales and use tax is charged on goods and services such as employment services, lawn care, fitness memberships and dry cleaning. Several items are exempt, including food and prescription medication. The revenue generated goes to run county governments. Sales and use tax to economists shows whether consumers are confident and are spending more money.

Read more about how governments are responding in Saturday's Vindicator or on Vindy.com.