Columbia retail sales increased 1.9% in March despite the coronavirus pandemic, and the mayor is attributing that partly to not adding extra restrictions as some cities did.
The city’s portion of the sales tax revenue from March sales, which are reported to the state in April and paid to cities in May, was $303,215 compared to $297,648 in March 2019.
The Mississippi Department of Revenue released the figures Friday. Among all Mississippi cities, sales tax collections were down 6.9% for the month.
Columbia Mayor Justin McKenzie said Tuesday he feels like one of the things that has helped Columbia is there have not been a lot extra restrictions put on the citizens here as in some of the larger cities. He believes by not having them, citizens from other areas have come here and spent their money.
However, McKenzie warned, “The virus is very serious and should be taken seriously."
McKenzie said he and the Board of Aldermen have been watching the data and seeing how larger cities regulated everything more than in Columbia, yet despite the additional regulations the number of COVID-19 cases continued to increase in those places in proportion to their population.
“Not overreacting has allowed a better opportunity for our businesses to survive,” he said.
In Hattiesburg Mayor Toby Barker placed additional restrictions beyond the state COVID-19 regulations, and Hattiesburg’s sales were down 13.8% in March. The City of Hattiesburg has announced layoffs as a result.
Something else in Columbia’s favor, McKenzie said, is areas such as the Gulf Coast depend a lot on tourism revenue and Hattiesburg relies on college students, while Columbia has been able to stay more in the black because the population has not decreased.
“It was reassuring to receive that and see that we had an increase in our numbers. That shows value in small towns in Mississippi," he said. "It shows the difference between how small towns operate versus larger cities such as Hattiesburg and Gulfport."
McKenzie also said the number could also be a little misleading. During the time since the coronavirus has become so widespread, some people have bought in bulk, such as toilet paper, out of fear. He said as things are starting to settle down, he believes people will not be stocking up so he thinks the numbers will slow down.
The numbers reflecting sales in April, which is when the strongest state restrictions were in place, will be released in mid June.
The first coronavirus case was reported in Mississippi on March 11, and Gov. Tate Reeves declared a state of emergency March 14 as businesses and schools quickly began shutting down. Reeves’ statewide shelter-in-place order that allowed only essential businesses to operate lasted from April 3 to April 27. A "safer-at-home" order remains in place through May 25, which requires social distancing but allows most companies to reopen.
McKenzie said adults should have the right to choose how to respond to the virus and not be bogged down with extra restrictions. He also said each adult needs to take responsibility on how each wants to handle things without too much interference from the government.
“People are shopping local and supporting the businesses here. People have been shopping at home,” McKenzie said.
The 3% tourism tax collections from March sales at restaurants and hotel was $62,942, which is in line with previous months since the tax began to be levied in July 2019. McKenzie said people have really been supporting the local restaurants. The total amount of tourism tax received for the fiscal year is $589,573.
One local fast food restaurant told McKenzie it is pushing at record numbers in sales at the moment.
“Many of our restaurants have provided a good meal every day, and they are consistent. They are appreciative, and I think people try to support locally own businesses,” he said. “Most everybody want to see their neighbor make it. I believe people focused on shopping local because of that."
From July 1 to date, Columbia’s sales tax revenues are up 1.4% to $2,730,997 compared to $2,692,609 in the same period last year.
