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GF sales tax down 13 percent in June

The city of Grand Forks got a lot less sales tax dollars in this month compared with the same month a year ago, according to the finance department. The $1.07 million collected is 13.2 percent lower than in June 2008, which Budget Officer Maureen...

The city of Grand Forks got a lot less sales tax dollars in this month compared with the same month a year ago, according to the finance department.

The $1.07 million collected is 13.2 percent lower than in June 2008, which Budget Officer Maureen Storstad said probably was caused by disrupted traffic during this spring's flooding.

There's usually a lag of about two months between the time sales happen and the time stores submit the taxes to the state, which then gives cities back the portion of that belong to them.

During the flood, a portion of Interstate 29 to the north was flooded and two of the city's bridges over the Red River closed. This made it harder for Canadians and Minnesotans to get into town, if they weren't also busy fighting their floods.

The good news is sales tax collected from the beginning of the year totaled $7.91 million, which is only 0.9 percent lower than the same period in 2008.

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Storstad said the finance department is predicting the city will collect less in 2009 than in 2008, though collections will get better in 2010.

Reach Tran at (701) 780-1248; (800) 477-6572, ext. 248; or send e-mail to ttran@gfherald.com .

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