Debt Service Could Be Impacted By Sales Tax Losses

Putnam County’s ability to take on additional projects could be affected if the coronavirus situation lasts into the spring.

County Commissioner Chair Ben Rogers said the county’s leadership team continues to watch sales tax receipts.

“If the sales tax isn’t coming in like it normally does, then the future debt we may incur may be slowed down for a while,” Rogers said. “So, this will affect all of that. It will affect the school’s budget as well, so we have to look at all that.”

Sales tax revenue gets split three ways. 68 percent of the money goes to the school system. The general fund and debt service receive the remainder of the money.

With restaurants and bars closed and many staying away from other businesses, Rogers said the revenue numbers will be affected. It takes several months for the sales tax revenues to move through the system and back to the counties.

“We won’t know for sure, but we know in the next couple weeks,” Rogers said. “Maybe starting this week, that people are not getting out, not going to restaurants as much. They are staying home, A lot of businesses are shutting down. Those businesses are sending us sales tax revenue.”

In March 2019, over $696 million in sales tax revenues came into the state.

The county has been considering new schools, a new fairgrounds, and expansion or a new Justice Center among its capital projects.

Restaurants made up just over eight percent of sales tax receipts statewide in February.