By Meredith Gardner
meredith.gardner@theindependent.com

For the first and only time last year, the state's total sales tax revenue went down in December, with a 3.7 percent decrease compared to the same month in 2006. Grand Island's total went up .1 percent to $87,915,868, while Hastings recorded a 3.8 percent decline, and in Kearney, the sales tax total was down 1.5 percent.

Overall, Hall County recorded a .9 percent increase in net taxable sales in December and a 6.6 percent increase in 2007.

Retailers typically look to have a strong December because of holiday sales, and many local retailers said they did, said Cindy Johnson, president of the Grand Island Area Chamber of Commerce.

Because of that, she found December's sales tax numbers "interesting," she said.

"I don't know where the shoppers have gone," she said, especially since sales tax numbers went down statewide.

While one month's numbers don't show a trend, December's figures are likely a reflection of the nation's economy, said Johnson and Marlan Ferguson, president of the Grand Island Area Economic Development Corp.

As the price of gas goes up, people have less disposable income, they both said. The decline in new housing construction has probably had an impact, as has the rising cost of food.

But the fact that sales tax figures didn't go negative is good for Grand Island, Ferguson said.

"We're pleased that we're still on the positive side," Ferguson said. "It doesn't appear to be as bad here as it does elsewhere in the U.S."

Johnson agreed.

"I'm glad we had an increase, albeit a very small increase," she said. "But at least we weren't on the losing side."

What isn't good, however, is to see a lack of growth in sales, Johnson said.

"It's nothing to celebrate being basically stagnant from one year to the next," she said, adding she couldn't remember the last time Grand Island had a losing month.

In contrast, motor vehicle net taxable sales went up 10.4 percent in Hall County in December 2007 compared to the same month in 2006. Adams County recorded a 2.6 percent increase, while Buffalo County's numbers went up 2 percent.

For all of 2007, Hall County's motor vehicle sales were up 8.1 percent, topping off at $90,287,611, while Adams County had an increase of 6.8 percent and Buffalo County went up 9 percent.

Local auto dealers credited factory rebates, manufacturers' incentives and improved products for the increases.

Tom Dinsdale Cadillac-Chevrolet-GMC-BMW's sales department also noticed an increase in the number of farmers buying new vehicles, said General Manager Mike Jakubowski. Sales went up there 20 percent last year, he said.

Ferguson said he expects Grand Island to continue to be less impacted than other areas of the state and the country by the declining national economy, in part because of its strong agricultural base.

But Johnson said she would be keeping a close eye on the sales tax numbers for this year, once they become available.

"One month does not a trend make, so we'll see what happens with January numbers," she said. "But today, our retailers are still feeling good about making it through the winter."