SALES TAX STAYS FLAT; COUNTY OFFICIALS HOPING SALES WILL REBOUND

JACKSON - During the first few years after Cape Girardeau County implemented a sales tax in 1980, receipts each year increased by at least 8-9 percent. County officials knew such growth wouldn't last forever, but with the county's retail base and role as a regional center increasing in the 1980s, they were optimistic about continued growth.

After 1987, the growth slowed to between 4 and 5 percent - not as good as before, but still good steady growth.

Despite a lagging economy and local governments all over the state complaining of no growth or declining revenue, Cape County's income from its half-cent sales tax increased 4.7 percent in 1990 over 1989, topping the $3 million mark for the first time.

Ten months into 1991, and with sales tax revenue running just about $3,800 over last year, county officials are fearing that the recession has indeed caught up with Cape Girardeau County.

"We knew it wouldn't last and hopefully the last two checks will show us some growth, but it doesn't look good right now," said Presiding Commissioner Gene Huckstep.

He pointed out that in the past the county's sales tax has lagged during the early part of the year, only to rebound in the second half and record a pretty good rate of growth. But with only two more checks due this year, he knows any growth will only be minor.

"At least we're not running behind last year like many other places are," added Huckstep.

The check for October, received on Thursday, was for $257,872.77, which is slightly less than the $258,208.36 collected in October of last year. In 1989, the October check was for $249,910.60.

Overall for 1991, the county's sales tax has totaled $2,567,943.80. At the end of last year, receipts totaled $3,059,186.87.

Associate Commissioner E.C. Younghouse said October's check just follows the trend of all of 1991. "In one sense, I'm happy it's not down more than that, but I wish it was up rather than down. We really do have to keep an eye on spending and try to cut corners here and there," said Younghouse.

Huckstep, Younghouse, and Associate Commissioner Leonard Sander, have all warned that a flat sales tax year will mean extra belt-tightening measures will be taken at budget time in December.

"No matter what our revenue is, I will guarantee that Cape Girardeau County will live within its means," declared Huckstep.

"I think we can weather this storm," added Younghouse, "but everybody will have to tighten their belts when it comes to the 1992 budget."

Reasons for the decline are difficult to pinpoint, especially since Cape County has been able to dodge the blunt of the recession in past years.

Huckstep pointed out that the construction of a new mall at Marion, Ill., an expansion in the Carbondale mall, and competition from the Paducah mall may be cutting the number of out of state shoppers coming to Cape County. But he said the ultimate impact of that competition remains to be seen.

With a diverse employment base, Cape County has not suffered from the recession as much as some places have, however, he pointed out the recession may be starting to hit Cape County.

"I think people are being a lot more cautious, particularly with big ticket items," said Younghouse. "They appear to be moving more slowly, and that indicates people are being more careful with their money.

"We're ready for a recovery."