Beginning of 2021 better than 2020
Edmond sales tax collections continue to be strong through February 2021. Sales tax collections for the first two months of 2021 were more than 6 percent higher than collections in the first two months of 2020. Attributing to these impressive gains were large increases in the retail NAICS categories of Furniture & Home Furnishing Stores, Grocery & Liquor Stores, and Building Materials & Hardware Stores.
One interesting example of a category experiencing impressive gains is the Gasoline Stations & Convenience Stores category, which saw a more than 100 percent increase in 2021 over this same timeframe in 2020. While the cause for the gain is not definitively known, a pandemic-related decrease in travel in 2020 could be responsible for the sharp contrast.
While many different categories saw gains, the top overall sales tax categories remained the same, with Department Stores, Other Building Material Suppliers, and Grocery Stores holding steady in the top three spots. Full-Service Restaurants and Limited-Service Restaurants also remain near the top at fourth and fifth highest, respectively. This trend should continue as new-to-Edmond restaurant establishments continue to open in the city and add to the sales tax base.
Restaurants coming soon include:
- PLANT, a plant-based café that will open in the Edmond Railyard
- Neighborhood Jam, which serves breakfast, brunch, and lunch and is currently under construction near the southeast corner of Vista Lane and 2nd Street
- HunnyBunny Biscuit Co., a counter-service restaurant concept that features scratch-made biscuits that is under construction near the southwest corner of Covell and Kelly
Use tax also continues to draw strong collections, with a more than 37 percent increase when comparing the first two months of 2021 to the same period in 2020. While an impressive increase, it should be mentioned that use tax collections are more unpredictable than sales tax collections and such large increases may be due to a single large purchase that cannot be counted on to occur in the future. Looking back to January 2021, use tax collections in the Electronic Shopping category saw a huge increase over the same month, with approximately $200,000 more in collections.
By comparison, sales tax collections for Department Stores actually saw a 2 percent decrease in January 2021 compared to January 2020. However, Department Stores still provides the largest sales tax collections of any category at more than $1 million most months. As in the case of the Gasoline Stations & Convenience Stores category, this again may be pandemic-related, with shoppers favoring online shopping options. However, online shopping is not a new trend nor will it likely go away even as more people opt to shop in person again.
For Edmond retailers looking to capture this online market, the EEDA has an E-Commerce Loan Program that provides a loan of up to $5,000 to qualifying businesses located inside Edmond city limits. The funds must be used to partner with a web development company also located inside Edmond city limits to add e-commerce to the business’s site. For more information, contact the EEDA for qualification requirements and application details.
For an in-depth look at trends in the real estate market sectors, many with correlating impacts on sales tax collections, join the EEDA for the 2021 Economic Preview Virtual Series, sponsored by First Fidelity Bank. The series of three virtual events will focus on the residential, multi-family, office, and retail market sectors. The events will be held on April 7, April 14, and April 21 and will all begin at 9 a.m. on Zoom. Register online.
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About Sarah Dickson
Sarah Dickson is the communications director for the Edmond Economic Development Authority (EEDA). Sarah has been with the EEDA more than 10 years, serving in multiple communications roles. She is responsible for producing demographic, workforce, economic, and statistical reports as well as managing all communications for the organization.
Sarah is a graduate of the University of Oklahoma Economic Development Institute (OU/EDI) and Leadership Edmond Class XXV. Sarah serves on the boards for the Public Relations Society of America – Oklahoma City Chapter and the Oklahoma Council on Economic Education. She is also an active member of the Oklahoma Venture Forum.
Sarah has earned her Accreditation in Public Relations (APR) as well as the designation of Certified Economic Developer (CEcD).