Pratt’s sales tax revenues for January fell a whopping 29.9 percent over the same period in 2009 from $209,260 to $146,645, according to the Kansas Department of Revenue.
The decrease for February was much less but still significant. Sales tax revenue was $19,989 less in February 2010 than in February 2009.
“Things that normally contribute to sales tax revenues are not happening,” said Vincent Amanor-Boadu, associate professor of agribusiness at Kansas State.
A large part of sales tax revenues and likewise a large part of the economy are big ticket items such as appliances, vehicles and luxury items. They are not selling well.
“Consumers are saving right now,” said Amanor-Boadu, who was the keynote speaker at 2009’s Annual Chamber of Commerce Meeting in Pratt. “As a consumer, increasing my savings is good for me, and it’s usually good for the economy, but not if everyone does it.”
And while unemployment is a low 4.7 percent in Pratt County, sales tax numbers demonstrate just how cautious local consumers are.
“This whole thing is about trust and confidence,” he said. “There is reason for hope. It is driven on the fact that demand is eventually going to go up, because we have significant capital in low-yield bonds and other ‘safe’ investments.”
Pratt, Kan. —
