Sales tax slide presents challenge for county governments

March 10, 2018 at 4:27p.m.

YOUNGSTOWN

Mahoning County officials have touted a continued 3 percent growth in sales tax collections as reason for optimism as they face a $4.5 million budget shortfall with the loss of revenue from a statewide tax on Medicaid managed-care organizations.

Yet 2017 data from the state Department of Taxation shows a 1.8 percent decline in sales tax collections in Mahoning County.

This creates a new concern as officials struggle to maintain revenue levels and continue to fund the government.

As online commerce continues to grow, a decline in foot traffic at brick-and-mortar stores and a complicated collection system for some online sales could further erode the sales tax base counties rely on as their main source of funds.