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March brings City of Dothan’s tax revenue surplus over $7 million

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DOTHAN, Ala. – March brought flowers into bloom and another $6.3 million in tax revenue to the City of Dothan.

The latest monthly report, which added alcohol tax revenue figures to the statement, showed tax-collecting in March that reflects February sales yielded $789,723 over budget projections and $134,156 more than the amount collected in March of last year. March’s surplus brings the 2021 Fiscal Year Budget’s surplus to $7,152,705 halfway through the current budget cycle.

Compared to this time last year, Dothan’s finance office has collected 8% more in general sales and use tax revenue – the main contributor to its year-to-year growth, 15.9% more in automotive sales tax revenue, 66.5% more in machines and manufacturing revenue, 9.2% more in farm and agriculture tax revenue, and 0.6% less in alcohol tax revenue during this budget year.

Lodging tax revenue fell below budget projections for the sixth month of this fiscal year with an $86,207 deficit in March. In total, the budget has a total $470,230 shortfall. City officials are hoping the spring weather, which brings in spring break traffic and group sports tournaments, will start to bring more revenue to the Dothan hospitality industry – the hardest hit due to pandemic-era measures.

The volume of travelers through the Circle City has noticeably picked up in the last month, making it difficult to travel on heavily-trafficked roads, particularly on the weekends. But, the pass-through tourism could bring in more money to local businesses and the city’s lodging tax revenue budget in coming months.

Sable Riley is a Dothan Eagle staff writer and can be reached at [email protected] or 334.712.7915. Support her work and that of other Eagle journalists by purchasing a digital subscription today at dothaneagle.com.

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