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City staff cite unpredictability in use and marijuana tax receipts while sales tax steady; council approves temporary transfer into general fund
Summary
Budget staff told the council that sales tax projections are modestly up (about 1%) for FY26, use tax has been stronger than budgeted and marijuana tax receipts are volatile; staff also said they temporarily moved a 0.2 percentage point portion of the public improvement sales tax back into the general fund to help balance FY26.
City budget staff told Columbia City Council members that sales and use tax together remain the single largest revenue source for the general fund, that use tax receipts have been unusually variable, and that the city has reallocated a portion of the public improvement sales tax back to the general fund for FY26 to narrow the budget gap.
Lede facts and forecasts Staff said sales tax and use tax together make up roughly 30% to 38% of general fund revenue, and overall sales-tax growth for the city is forecast at about 1 percent for FY26. "Overall though, it's about a 1% increase for sales tax is what we're forecasting," said DeCarlin, a staff presenter.
Use tax unpredictability Budget staff described use tax as particularly unpredictable: "there's…
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