Sales tax collection on pace for $500,000
The City of Rugby collected just under $300,000 in sales tax revenue last year, and that total will likely be surpassed by the end of August.
Through June the collection was $243,536.45 and is on pace to generate about half a million dollars by year’s end, according to figures released by the city auditor’s office.
The Rugby City Council last year approved increasing from one to two percent, the motivating factor was to generate additional funding to paying down the debt incurred from the District 1-2009 street improvement project.
Sixty-five percent of the collected funds are set aside for city infrastructure and maintenance while the remaining 35 percent operate the Rugby Area Job Development Authority for economic development projects.
The city’s sales tax was established in 1993 after voter approval and it gained support again by vote in 2002. Many cities across the state have a sales tax, and most have it set at two percent.
In addition to the two percent sales tax, there is also a one percent hotel-motel lodging tax and a one percent restaurant and lodging tax. Those fund the Greater Rugby Area Convention and Visitors Bureau.
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