NATCHEZ — The City of Natchez saw an overall 3-percent increase in sales tax collections for the 2011-2012 fiscal year, with collections totaling approximately $5.26 million.

Collections for July, the last of sales tax collections for this fiscal year, were reported this month. July collections were $409,843, down 2 percent from the $421,847 collected in July 2011.

Sales tax collections for September reflect sales tax collected in July. Collections are reported two months after the fact.

The $2 hotel and bed-and-breakfast occupancy tax collections spiked 21 percent in July to $31,052, up $5,392 over the $25,660 collected in July 2011.

Collections for the year are up 7 percent, with $331,444 collected. That is $23,487 more than the $307,957 collected in the 2010-2011 fiscal year and the highest collection since the tax was implemented in the 2008-2009 fiscal year.

Food and lodging tax collections were up more than 10 percent in July at $30,972, up $2,975 from the $27,997 collected in the 2011-2011 fiscal year.

Food and lodging tax collections for the year fell a little less than 1 percent to $362,227 collected, down $3,559 from the $365,786 collected in the 2010-2011 fiscal year.

Despite the decrease from last fiscal year, this year’s food and lodging tax collections were higher than all the yearly collections prior to the 2010-2011 fiscal year, dating back to the 1997-1998 fiscal year.

City Clerk Donnie Holloway has been anticipating overall higher sales tax collections for this fiscal year for several months. Holloway said he believes the increased collections can be attributed partially to economic turnaround. He said he also believes new construction of the casino and the flyover has brought people to Natchez.

“We’re fortunate to have the increase, and hopefully we’ll continue to grow,” he said. “People need to know they need to spend their money here at home.”

Mayor Butch Brown said he agreed new construction has brought people to Natchez and has had a positive impact on sales tax.

Tourism and the efforts of local tourism officials, Brown said, have also contributed to increased sales tax.

Brown has said the city does not believe it is getting all of its due sales tax and has enlisted the help of the state tax commission.

At a September board of aldermen meeting, Brown said there were a number of local businesses operating without a license and therefore likely not paying sales taxes.

Because of that, Brown said he believes sales tax collections for the 2012-2013 fiscal year, which begins Oct. 1, will be even higher than this fiscal year.

“We need people to shop at home and encourage their friends and family and acquaintances to shop in Natchez,” he said.