Rise in building has caused rise in sales tax

Published 9:35 pm Monday, March 5, 2007

Over the past few months, sales taxes have jumped in most of the Miss-Lou, and, officials say, construction can take much of the credit.

Sales of construction materials made up a good chunk of Natchez and Vidalia’s recent sales taxes, officials on both sides of the river recently said.

And those in the business agree.

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Melvin Davis, sales coordinator for Stine Lumber Co. in Natchez, said he’s seen business pick up over the past few months. Davis said he sees blueprints making their way into his office and land being bought and sold.

“There is no doubt about it, (business) has most certainly gone up,” Davis said. “You drive around town, and you notice things you didn’t see three years ago.”

He sees signs of growth in his store, too, with more customers and more orders, he said.

“It starts with the little things — we’ve got a lot more walk-in traffic coming through the store. When retail is up, it means folks have got money somewhere and they’re starting to add, rebuild and remodel.”

This is a big improvement over past years, Davis said. After local industries and plants closed, things looked pretty dim.

But new hotels, new homes and new businesses rising from the ground is a good sign, he said.

“Now, wherever you go, you’ve got building and construction. That lets you know the rest of the economy is good,” Davis said. “Construction means more people moving in.”

The future looks bright for the building business, too, he said. More projects and more land mean investments and future plans.

“It tells me we’re in it for the long run,” Davis said.

“We just need people to feel Natchez is here, and we’re here to stay.”

Vidalia construction is picking up, too, said Concordia Lumber and Supply Co. spokesman Charlie Cannon said.

“It’s good right now,” Cannon said. “(Our numbers) are probably the same as last year.”

That’s a positive step, he said, as is taking orders.

“We’re doing a lot of figuring — house plans are coming in,” Cannon said.

“It looks like it’s going to be a good year.”

But things aren’t quite so sunny in Ferriday, James King, manager of Budget Build Lumber and Supply Inc., said. Like Ferriday’s sales taxes, construction sales have decreased in recent months, he said.

“Everything’s down in Ferriday,” King said. “It’s terrible.”

King said he thought the lower numbers resulted from a combination of factors. When the Ferriday Wal-Mart closed and the Vidalia Wal-Mart opened, it took business to Vidalia along with it.

“And last year, we still had overrun from (Hurricane) Katrina,” King said. “We were selling stuff for that (construction). This year, people are not doing the same things.”

King said his customer count was down about 20 percent, from an average of 1,800 customers each month to roughly 14,000.

“The last one in Ferriday is going to have to turn out the lights when they leave,” King said. “It’s not good in Ferriday.”