Sales Plummet, Casino Taxes Drop: Shocking Trends Unveiled!

Date: Tuesday, December 31, 2024

Smart Budgeting: How Carryover Funds Keep Mercer County Afloat

In a year where many were hoping for consistency, Mercer County saw its sales tax revenue take a slight tumble, dipping by 2.3% in 2024. This marks a notable shift after 13 years of consistent growth, raising eyebrows about the resilience of our local economy.

The news didn’t stop there; the county’s slice of the state casino tax revenue also dipped, down by 2.4%. Mercer County Auditor Randy Grapner, while lacking a detailed breakdown of sales, suspects the downturn is widespread, with several sectors feeling the pinch.

“It’s likely an across-the-board issue,” Grapner suggested. “Car sales are sluggish, housing markets are cooling, and inflation is making it tough for local businesses to thrive. We’re even hearing reports of some businesses shutting their doors.”

Sales Tax Insights

Mercer County has a sales tax rate of 1.5%, with 1% directly fueling the general fund and the remaining 0.5% earmarked for the maintenance and operation of the jail and sheriff’s office, conveniently located west of Celina. When combined with state taxes, the total sales tax rate stands at 7.25%.

For 2024, Mercer County raked in $7.59 million from sales tax for its general fund, a decrease of $176,576 from the previous year. Meanwhile, the jail sales tax contributed $3.8 million, marking an $88,300 drop. All together, the county’s total sales tax revenue landed at $11.39 million for 2024, a decline from $11.65 million in 2023.

This monthly sales tax revenue reflects consumer spending from about two months prior, with the state collecting these funds and sending them back to the county. Grapner also noted that the county will receive a reimbursement of approximately $105,000 from the state for the expanded sales tax holiday this summer, which could provide a much-needed financial cushion.

County Commissioner Dave Buschur expressed concerns about the national economy, indicating that we might be facing a downturn that could have manifested years ago without government intervention. His outlook for 2025 is not particularly rosy.

“I’m worried we might see another dip,” Buschur stated. “In the last 22 years, we’ve never faced back-to-back years of declining sales tax revenue.”

Sales tax remains the lifeblood of the county’s finances, accounting for about 43% of the general fund. As commissioners work through the 2025 budget, they’re tasked with managing a total of $78.6 million across all accounts, including $18.18 million designated for daily operations.

Fortunately, Mercer County is looking at a sizable carryover from 2024, which will help buffer the financial impact. Commissioner Rick Muhlenkamp anticipates a carryover of around $7.5 million that should help navigate the upcoming budget challenges.

Casino Tax Revenue Trends

On another revenue front, Mercer County’s share of casino tax revenue for 2024 came in at $607,546, a slight decrease from the previous year. Since 2012, the county has benefited from approximately $6.25 million in casino taxes, providing another essential revenue stream for balancing the budget.

The county’s 2024 casino tax revenue reflects a steady income stream, albeit with slight fluctuations over the years. Ohio voters embraced casino gaming back in 2009, enabling casinos to operate in major cities, with a significant 33% revenue tax collected from licensed operators.

These state funds are distributed among various entities, with 51% allocated to counties based on population. In 2024, Ohio’s total gross casino revenue reached an impressive $1.006 billion, leading to $330.4 million in taxes distributed statewide.

As Mercer County navigates these financial challenges, the importance of strategic budgeting and revenue diversification has never been clearer. With the right moves, there’s hope for a brighter fiscal future ahead.