Dec. sales tax collection make solid gains in Tri-Cities, NE Tenn.


By DON FENLEY

Sales tax collections in Northeast Tennessee closed the year with solid year-over-year increases.

According to MTSU’s Business and Economic Research Center report on seasonally adjusted collections, Knoxville led the region with a 6% increase.

Kingsport-Bristol was close behind with a 5.9% increase and Morristown was up 5.7%.

The Johnson City MSA had the smallest increase 3.6%.

Cleveland was the only MSA in the state that saw collections decline in the final month of 2014.

Nashville led the state with an 8.2% increase.

In the Tri-Cities, Kingsport-Bristol showed larger increases than the Johnson City MSA during most of the year. But, while the year-to-year comparisons in the Johnson City MSA were smaller the overall trend was less volatile than what was seen in Kingsport-Bristol.

Two factors that weighed heavily for the Johnson City MSA was nonfarm job creation during 2014 were flat and the average weekly private sector wage declined in all but three months.

While average private sector wages in Kingsport-Bristol fared better than those in Johnson City the growth was tepid. When adjusted for inflation against a pre-recession benchmark the buying power for the average private sector weekly wage in December increased $5 in the four-county MSA.

 

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  1. […] oddity is while the jobs and pay situation looked weak year-over-year sales tax collections were up for most of the year.  That’s another oddity of the local economy because while the labor market is definitely not […]

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