Starkville Surpasses Sales Tax Projections while Columbus Falls Short

Starkville, September 20, 2025

News Summary

Starkville has reported strong financial performance for fiscal year 2025, surpassing sales tax projections with $10.21 million, a 12.47% increase from the prior year. Meanwhile, Columbus fell short of its budget, reporting $11.61 million, a modest 1.24% increase. As both cities confront challenges ahead, Starkville’s consistent growth contrasts with Columbus’s hurdles affecting future financial forecasts.

Starkville has reported strong financial performance for fiscal year 2025, surpassing sales tax projections. The city’s general sales tax diversions totaled approximately $10.21 million, reflecting a 12.47% increase from fiscal year 2024. This figure exceeded Starkville’s budget of $9.73 million by about $484,505.

In contrast, Columbus experienced a shortfall in its sales tax collections, reporting diversions of $11.61 million for fiscal year 2025, an increase of only 1.24% from the previous year. Columbus fell short of its projected sales tax budget of $11.8 million by approximately $180,485.62.

Sales Tax Collection Process

Sales tax collections function on a three-month cycle: retailers collect taxes in the first month, report the amounts to the Mississippi Department of Revenue in the second month, and cities and counties receive disbursements in the third month. Columbus noted collections of $11,619,514.38 in September 2025, which was slightly higher than the $11,476,301.80 reported in the same month the previous year. However, Jim Brigham, CFO of Columbus, indicated concerns regarding slowing economic growth and high interest rates affecting future collections.

Future Projections

For fiscal year 2026, Columbus is projecting a sales tax growth rate of 1.67% with a budget set at $12 million. Meanwhile, Starkville’s sales tax revenue has shown consistent annual growth since 2014, with restaurant and lounge tax diversions reaching $2,617,022.92, marking a 4.03% increase from fiscal year 2024. Furthermore, Starkville collected $1,825,551 from tourism tax diversions for the year, reflecting a 4.32% rise from the prior year.

Other Regional Comparisons

Additionally, West Point reported a significant decline in sales tax collections, experiencing a 16.92% drop year-over-year with collections reported at $626,224.57 for the period. Their current month’s collections were also down by 8.23% from the previous month, totaling $195,009.66. In response, the city of West Point is focusing on increasing its retail offerings and attracting new businesses to mitigate revenue shortfalls.

Current Trends in Sales Tax Causes

For Starkville, the city’s food and beverage tax revenue surpassed pre-pandemic levels by over $130,000 compared to last year. However, in September, Starkville collected $684,935 in sales tax revenues, which was a decline of 14.57% from August. Starkville’s restaurant sales tax for September recorded $229,179, representing a 1.45% increase from the previous month. Meanwhile, Columbus’s restaurant and lounge tax revenue for the same month was $220,645.68, which is down 7.83% from August.

Conclusion

Overall, while Starkville celebrates a year of exceeding projections and growing revenues, Columbus faces hurdles as it plans for moderate growth in the upcoming fiscal year. The implications of economic factors such as interest rates and tariffs could affect both cities’ financial outlook moving forward.

FAQ

Key Financial Features

Deeper Dive: News & Info About This Topic

HERE Resources

City Workers Laid Off Due to Budget Cuts
Starkville Sales Tax Revenue Surges Amid Declines in Columbus and West Point

Additional Resources

• CDispatch: Starkville Exceeds Columbus Falls Short of FY 25 Sales Tax Budget
• Wikipedia: Sales Tax
• CDispatch: Big May Helps Columbus Make Up Ground on Sales Tax Collections
• Google Search: Sales Tax Collections
• CDispatch: City May Miss Budget Due to Sales Tax Slump
• Encyclopedia Britannica: City-State
• CDispatch: Sales Tax Revenue Almost Flat in Columbus, Soaring in West Point
• Google News: Sales Tax Revenue
• CDispatch: Mall Tax Incentive Giant Waste of Everyone’s Time

Author: STAFF HERE STARKVILLE WRITER

The STARKVILLE STAFF WRITER represents the experienced team at HEREstarkville.com, your go-to source for actionable local news and information in Starkville, Oktibbeha County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Cotton District Arts Festival, Bulldog Bash, and Mississippi State University homecoming celebrations. Our coverage extends to key organizations like the Starkville Area Chamber of Commerce and the Mississippi State University Extension Service, plus leading businesses in education and agriculture that power the local economy such as Mississippi State University and Starkville Manufacturing. As part of the broader HERE network, we provide comprehensive, credible insights into Mississippi's dynamic landscape.