Richmond County residents who shop out of town for the better price may get it, but they are robbing their county of money that can be used to provide services.

The local share of state sales tax revenue is down. One reason could be because purchases are made outside of Richmond County. It didn’t use to be that way, but the law has changed.

“Since a large portion of sales taxes are now distributed based on point of sale, where our citizens shop is very important,” County Manager Rick Sago said. “Not only does shopping locally support the Richmond County economy through supporting Richmond County businesses, it provides sales tax revenue to help pay for county services.”

If you make a purchase in another county, the sales taxes are credited to that county.

Barbara Brearley, a Rockingham resident, says if she can get it in town, she tries to buy it here. “But, I make and document historic projects and I can buy acid free notebooks from Staples by the hundred for a cheaper price in Southern Pines. I have a son that stays in Charlotte, when I visit him I may shop there.”

For the 2008-09 budget year, the county budgeted for $8.3 million in sales tax revenue. It got only $7.2 million. For this year, the county budgeted for $6.23 million but is projected to get just $5.64 million.

“The only way to change it, is to increase retail sales here and not outside of Richmond County,” Richmond County Finance Director Mac Steagall said. “Obviously we don’t have all the big shopping centers, or wholesale retailers that other large cities have.”

Sago said the cause of the drop is twofold; a bad economy means people are buying less. The other factor is the way the state charges sales tax changed. It used to be Richmond County got a pro-rated share of the sales tax revenue based on population, not actual sales.

“This would have a more negative effect on rural areas where there is less retail sales then in the urban areas,” Sago said.

There is hope the numbers may rebound.

“The sales tax should rise a small amount in the upcoming year,” Steagall said. “It takes two to three months after a person pays sales tax to come back to the local government. We don’t even know the numbers until we receive distributions.”

“Anything is better than it getting worse. Hopefully we will see some improvement,” Steagall said.

Hollie Nivens can be reached at (910) 997-3111 ext. 19 or by e-mailing at hnivens@yourdailyjournal.com.