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Finance director unveils new monthly sales-tax reporting; town revenues described as 'stable'
Summary
Finance Director Dave Byrd presented a new monthly sales-tax reporting package to the Administrative Committee showing generally stable gross sales through December, construction-led growth and sector variability; staff will refine reports and seek a local vs. mail-order breakout for retail.
Finance Director Dave Byrd presented a new monthly sales-tax reporting package to the Administrative Committee on Hilton Head Island, saying the town’s gross sales trends appear broadly stable and the new reports—compiled with staff and state data starting in 2023—will be included in future packets.
Byrd said the town’s year-to-date gross sales through December totaled about $1,500,000,000 and reflected only modest growth (he characterized the trend as “I’ll call stable” from the town perspective). He highlighted sector-level differences: retail is the largest sector, construction is the fastest-growing sector (about 18–19% higher than a year earlier), and telecom represented a larger-than-expected share of reported receipts.
The report, prepared with staff members April and Kimberly and augmented by state reporting, breaks taxable activity into tourism, restaurant, grocery, retail, construction, services, telecom and other categories. Byrd cautioned that sales-tax reporting lags the town’s internal financials—sales-tax figures presented were through December while the town’s financial statements extended through February—and noted one large landscaping filer had not yet submitted a fourth-quarter return, which staff say the state will apply to the correct month once filed.
Committee members asked technical questions about whether the state would restate prior months and requested further exhibits showing how accounting changes (including stormwater fixed-asset and depreciation entries) will affect fund balances. Byrd said staff will pursue additional detail, including a potential in‑town versus mail-order breakout for retail receipts, and will continue monthly reporting.
The committee’s follow-up requests include an exhibit that walks through the stormwater accounting change and a finer breakdown of retail and grocery activity as new stores come online. Byrd said the sales-tax reporting is intended to give earlier visibility into sector trends that inform the FY27 budgeting process.
The committee did not take an immediate vote tied to the report; Byrd said the reporting will continue to be refined and included with budget materials moving forward.
