Statewide sales tax receipts down in Idaho
Residents slash spending through February
Wednesday, March 19, 2008 12:48 PM PDT
TWIN FALLS (AP) — Idaho residents last month cut back on purchases, reducing state sales tax revenue, officials said.
‘‘February was very disappointing,’’ said Mike Ferguson, chief economist for the state Division of Financial Management, told The Times-News. ‘‘It’s probably not the time to hit the panic button, but it certainly is cause for concern.’’
Sales tax receipts were down 3.7 percent in February from the same month last year. State economists had predicted a 1.7 percent increase.
The increase in sales tax revenue began to slow late last year and declined in January.
State economists said the decline reflects a downturn in home, auto and retail sales.
Cigarette tax revenue slid almost 9 percent last month, while gas tax receipts fell 12.5 percent.
‘‘It’s a pretty good indication that people are tightening their belts for what’s ahead,’’ Ferguson said.
Business in southern Idaho appeared to be holding up better, partly because agriculture is being buoyed by high commodity prices.
In Twin Falls, Burley and Jerome, unemployment rates are at least 1 percentage point below the statewide rate of 4 percent. While home sales in southern Idaho have slowed, foreclosure rates in the region have risen less than 5 percent, compared with more than 20 percent in southwest Idaho. At the same time, lawmakers say there will likely be less money for state programs that could benefit southern Idaho.
