Grand Island’s economy continues to see positive growth following a year affected by the COVID-19 pandemic. But motor vehicle sales in Hall County declined in June after a strong rebound in sales following the pandemic.
According to the Nebraska Department of Revenue, June taxable sales in Grand Island totaled $104,223,905, which is an 18.5% increase from June 2020, when the local economy was starting to recover after several months of public health directives, due to the pandemic, that curtailed economic activities.
The $104 million in taxable sales in Grand Island is the largest total ever recorded for the city by state revenue collectors.
Starting in March, taxable sales in Grand Island have been among some of the highest in the city’s history. After falling slightly behind February 2020 taxable sales at $75.365 million, the local economy rebounded in March with $101.127 million in taxable sales, which was 33.7% more than in March 2020, when the effect of the pandemic was starting to be felt by local businesses and consumers.
In April, taxable sales in Grand Island again set a record for that month at $99.285 million, which was a 54.1% increase over April 2020 when public health restrictions were continuing to clamp down on community economic activities.
In May, taxable sales were again seeing record highs with $102.071 million in taxable sales being recorded in Grand Island for a 34.5% increase over May 2020.
To contrast taxable sales of 2021 and 2020 in Grand Island, in 2019, Grand Island taxable sales in March totaled $86.729 million; April, $82.7 million; May, $88.994 million; and June, $91.156 million.
Other area communities in the Tri-Cities area also experienced good taxable sales in June 2021 with Hastings recording $37.817 million, a 11.1% increase over 2020; and Kearney totaling $79.636 million in taxable sales, which was a 16.4% increase over the previous year.
According to Cindy Johnson, president of the Grand Island Chamber of Commerce, the city’s taxable sales during the past several months have only normally been seen during the Christmas season. She said in December 2015, the community had $102.6 million in taxable sales and $100.8 million in December 2017. Both were previous highs.
Johnson said there are a number of reasons for the increase in taxable sales.
“My best guess relates to pent up demand and a desire to purchase items that were put on hold during the pandemic — perhaps furniture, flooring, lawn equipment, etc.” she said.
Johnson said the community labor supply is “challenging to nearly every business, but food service is taking the brunt.”
But the community is still flush with government stimulus money that was handed out during the pandemic. Also, while the labor supply is tight and the lack of workers is causing major headaches for employers who are seeing increasing costs for their goods and services, those businesses who are hiring are also offering more money per hour, along with bonuses, for those who sign on.
Also contributing to the increase in taxable sales are online sales, which are taxed by the state of Nebraska.
The increase in taxable sales in the last four months bodes well for the city of Grand Island, whose city sales tax is 2%.
While Grand Island’s taxable sales are soaring, June saw a slowdown in motor vehicle sales in Hall County compared to last June, when motor vehicle sales were $20.029 million. In June 2021, motor vehicle sales were $15.845 million, which was a 20.9% decline from June 2020 when motor vehicle sales were beginning to pick up again after the pandemic hit.
Motor vehicle sales were quick to recover from the pandemic as sales started to pick up last summer after seeing a major decline in the beginning month of the pandemic.
While a survey of motor vehicle lots in the community will show half empty lots, sales of available vehicles since March have been good. In March, motor vehicle sales in Hall County totaled $19.209 million, a 92.7% increase compared to March 2020, when the community began feeling the economic impact of the pandemic.
Along with demand, supply chain shortages are causing a decrease in the number of new vehicles being offered to the public.
The following month, April, motor vehicle sales were $16.221 million, which was a 626% increase over motor vehicle sales in April 2020. In May, motor vehicle sales were $16.429 million, a 287% increase over May 2020.
In contrast to Hall County motor vehicle sales in 2020 and 2021 from March through June, in 2019, Hall County motor vehicle sales in March was $10.793 million; April, $12.076 million; May, $11.972 million; and June, $10.556 million.
In Adams County, motor vehicle sales were $9.019 million, which was up 7.1% from the previous June. In Buffalo County, motor vehicle sales were $13.209 million, which was down 38.3% from June 2020.
