Memorandum

City of Lawrence

Finance Department

To:  Dave Corliss, City Manager

From:  Ed Mullins, Finance Director

Date:  August 5, 2009

Subject:  Sales Tax Distribution

The City of Lawrence has recently received its July sales tax distribution.  The distribution is the result of retail sales from mid-May to mid-June.  As a result, most of the reported sales tax was at the higher rate approved by the voters.  The distribution of $2,721,468 and represents a significant increase from the prior year distribution for the same month because of the higher rate.  It also includes $2,052 from the Free State Transportation Development District.  Because of variations in monthly distributions, primarily due to late filings by vendors, it is advisable to not read too much into disparities between months.  The July 2009 1% city sales/use tax distribution was 4.7% more than the July 2008 distribution. 

A summary of the recent city sales/use tax receipts is shown in the table below.

Sales/Use Tax	Budget	Month	Year to Date	% of Budget
City 1%	13,871,685	1,265,282	7,950,149	57.3%
Infrastructure .3%	2,255,925	353,395	700,928	31.1%
Transit .2%	1,503,950	235,597	467,285	31.1%
Transit Eq. .05%	375,988	58,899	116,821	31.1%

The amounts from the new sales taxes were calculated by applying the relevant percentages to the sales that occurred after April 1, 2009.