Peru collects $7 million in sales tax, breaks city record

Peru broke the city’s record for the amount of sales tax collected in a single year, reaching $7.1 million in revenue, an increase of $679,707 from 2021.

Sales tax is one of Peru’s primary sources of government revenue, funding many city operations and allowing for lower costs in residential property taxes, said Mayor Ken Kolowski. The $7 million collected was reported in the city’s annual audit for fiscal year 2022, which was presented at Monday’s City Council meeting.

“We just had some record numbers come in from last year with sales tax and it’s a testament to the hardworking people (of Peru),” Kolowski said. “Everyone that’s in retail, services from big business to small business, it’s an incredible number.”

According to city financial records, new developments and a strong sales tax base are contributing factors to keeping the city’s property taxes low. Kolowski said sales tax is a big part of what runs the city. Peru, which also has a mall, boasts one of the leading commercial business districts in the region with several box stores.

“We want to keep growing, and that’s the direction we want to go and why we want more retail,” Kolowski said. “We’re fighting for it everyday, so hopefully this year coming up we get some things in the works that will be pretty exciting.”

Cate Moulton, CPA of Mack & Associates, presented the city’s audit report to the council. Moulton described it as “clean” and “strong” with minimal adjustments. Moulton also reported there were “no significant deficiencies or material weaknesses” in the city’s accounting.

“Thank you goes to the people that are working these shifts and selling these goods and keeping their stores open, especially after the pandemic,” Kolowski said, adding supply issues also have been a challenge for stores. “That’s where the true thank you goes to, everyone working in small business to big businesses.”

Additionally, the city recently launched a new website to promote economic development. It provides resources for interested developers, including statistics, information on the area, available properties, city contact information, among other information.