City of Jenks sales tax numbers on the rise since 2010-2011 fiscal year
The City of Jenks collects 3.55% of tax on any sales of goods in city limits.
In the past decade years, Jenks has seen a steady rise of roughly 3 to 10% in sales tax.
In that time frame, the City of Jenks has averaged a 6.3% rise per year in sales tax collection. City Manager Chris Shrout said that is in large part because of the Riverwalk Crossing area filling back up.
“We are very thankful for the Creek Nation for everything they have done for the Riverwalk,” Shrout said. “They have done a fantastic job. We are trying to build on that. We have some great restaurants in town, but in terms of department stores and things like that, we still don’t have any. We are also seeing a shift in the way people shop. More people are buying stuff online. Fortunately, Amazon is now remitting sales tax on items they sell and ship to Jenks.”
If an online shopper purchases an item on Amazon and that item is delivered to a residence in the City of Jenks, Amazon collects 3.55% and remits it to the Oklahoma Tax Commission, who then takes their portion and gives the rest to the City of Jenks.
Any business in Jenks that is selling goods is required by law to have a sales tax I.D. number, which is provided by the OTC. The OTC will then physically collect the money from each business and remit that the first several weeks of each month.
“Historically, over the past 30 years, we have lagged behind other communities in the area in sales tax collection,” Shrout said. “I think that is in large part because we have so many people that have moved here but work in Tulsa. Our location is a double-edged sword in that you can leave here and be anywhere in the Tulsa metro within 15 minutes. That is a benefit to us, but the downside is it’s so easy to go somewhere else and I think many people do go to Tulsa to shop.”
Shrout added that Jenks is fortunate to have Walmart, Reasor’s, CVS and Walgreens within city limits, but if you want to get some sort of specialty items, you have Sam’s in the Tulsa Hills area, Costco and Sprouts on Memorial Drive and Whole Foods on 91st and Yale.
“We think there is some leakage to those stores, but in addition to that, there are many restaurants that border Jenks with Tulsa Hills and Riverside Drive,” Shrout said. “A city like Owasso benefits from being a little farther out. They are kind of on an island. It takes them at least 15 minutes to get into Tulsa and some of these other areas frankly benefit from being a little bit farther removed from the City of Tulsa.”
The City of Jenks fiscal year runs from July 1 through June 30 every calendar year. Out of that 3.55% of sales tax collection, .55% goes toward the “vision” projects. Right now, there is a little more than $16 million from that tax that is designated for the low water dam and other projects, such as improvements to Veterans Park and infrastructure improvements, such as 1st and 7th Street and the B Street sidewalk.
However, the low water dam is in jeopardy. Due to the ballot language from the bond issue, it states that if a maintenance endowment fund is not secured for the project by December of this year, that $16-plus million can be used on other capitally funded projects.