Phoenix Collections Rise

Sales tax collections in Phoenix totaled $34.8 million in January, up 12.5% from January 2010’s $30.9 million.

The city’s Budget and Research Department said January’s increase was the first growth in sales tax collections since 2006.

Revenue from the retail sector was up 14.8% from January 2010, with bar and restaurant tax collections up 5.4%

Tax revenue from construction activity was up 28% from January  2010.

Phoenix officials had to cover a $277 million revenue shortfall in fiscal 2011 when collections failed to meet expectation. Estimates of the projected shortfall for fiscal 2012 range from $50 million to $80 million.

Details on the extent of the revenue gap will be presented to the City Council on March 29.

The council will receive the proposed fiscal 2012 budget from city manager David Cavazos on May 10.

Cavazos said revenue collections so far in fiscal 2011 have been about 1% above expectations.

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