Sales and use tax revenue rises in 2 Mahoning Valley counties

YOUNGSTOWN — People spending more is a positive to economists.

It shows confidence in the current state of the economy, while at the same time helping the economy.

Consumers spending “is not booming,” said Mekael Teshome, PNC Bank economist. “We have seen a steady flow of spending.”

That steady flow shows many consumers are not overburdened by debt as they once were, more people are working and willing to spend money, and lower costs on certain items have led consumers to buy other items.

Revenues from sales and use taxes in the Mahoning Valley are one way to measure consumer spending locally. County sales and use tax is charged on goods and services such as employment help, lawn care, fitness memberships and dry cleaning. Several items are exempt, including food and prescription medication. The revenue generated goes to run county governments.

In Mahoning County, sales and use tax revenue increased 9.5 percent year over year to $43.79 million in 2016, according to the Ohio Department of Taxation, but a 0.25 percent increase in the tax rate is in part a reason for the increase from 2015. The 1.25 percent tax rate went into effect in April 2015.

In Trumbull County, sales and use tax revenue increased 2.9 percent year over year to $26.56 million. The 1 percent tax rate has been in effect since July 2005.

In Columbiana County, sales and use tax revenue decreased 2.37 percent year over year to $16.44 million. The county’s 1.5 percent tax has been in effect since April 2007.

“When I see sales and use tax going up, I attribute it to a steadily recovering economy,” Teshome said.

For the complete story, read Sunday's Vindicator and Vindy.com