The City of Norfolk budget for the 2022-23 fiscal year reflects the City’s continued growth and strong finances. Part of that growth is seen in a significant increase in sales tax revenue.

In 2022-23, Norfolk sales tax is budgeted to grow $1.4 million or 14.73% reflecting a similar growth percentage as the City’s assessed valuation.  Sales tax receipts have been trending up with the increase in construction activity, sales tax on internet sales, and the recent annexation.

Over the last five years, non-residents have contributed to that growth as well ranging from 42 to 44% of city sales tax revenue coming from visitors to Norfolk. Norfolk’s pull factor has ranged from 1.85 to as high as 1.97 in the past decade alone.

Data in 2018 shows a 1.94 pull factor, which was taken from a July 2018 Retail Leakages Summary report and most recent data utilized a 2021 pull factor of 1.86 provided by PhD Economist Melissa Trueblood with the Nebraska Public Power District (NPPD). These pull factor figures were combined with 2022 City of Norfolk sales tax receipts to determine this percentage.

“NPPD is thankful for the partnership we have with the City of Norfolk. As part of the economic development services we provide to all of our customer communities, we help provide data and research when asked to assist with local decision making on economic development projects,” shared Nicole Sedlacek, Economic Development Manager with NPPD.  

The 1.86 pull factor implies that approximately 46% of the City of Norfolk’s non-motor vehicle sales tax is from non-residents. The City of Norfolk’s fiscal year end (9/30/2022) non-motor vehicle sales tax receipts were $10,046,726. If 46% of these sales are from non-residents that would equate to $4,822,428 of non-motor vehicle sales from non-residents. The City of Norfolk’s fiscal year motor vehicle sales tax was $925,218 for total fiscal year end (9/30/2022) sales tax receipts of $10,971,944. If $4,822,428 is from non-residents, the estimated non-resident portion of total sales tax is 42%. 

Based upon our overall retail pull factor, Norfolk has a very strong retail sector relative to other incorporated communities throughout the state. This number should be celebrated as it helps our community to attract retail offerings that enhance quality of life and encourages further growth. 

The high ratio between residents and non-residents indicates that many individuals in communities throughout Northeast Nebraska choose to do business here in Norfolk. We also welcome and appreciate the many visitors that attend festivals, sporting events, and conferences and while here, choose to make purchases in our community. 

Thank you to everyone who chooses to do business and shop here in Norfolk. We appreciate you. Thanks as well to Dr. Trueblood and NPPD for their input.