A switch to the Alabama Department of Revenue for tax collection may have solved Selma’s mysterious sales tax shortage.

For months, sales tax revenue continuously came up short of the previous year. At one point, Selma Mayor George Evans estimated the total shortage equaled $500,000, but the latest numbers show an increase of $67,000, meaning the city generated more than $880,000 for the tax period ending Oct. 31 — the largest since April 2013. The numbers were reported at the December meeting of the Selma City Council.

Holiday shopping may have bolstered the numbers a bit, but Ward 1 City Councilman Cecil Williamson said it’s unlikely as many shoppers wait until closer to Christmas. Council president Corey Bowie said the increase is largely due to the city’s switch to the Alabama Department of Revenue.

“It seems like we are finally getting what is due to us now that the state has taken over,” Bowie said. “I think people understand the enforcement power they have. We felt that the state had more enforcement power than RDS and a more reputable name and that’s why we made the switch.”

The Department of Revenue officially took over tax collection on Nov. 1. The department of revenue charges a maximum of 2 percent of all tax collected. The city paid less — $1.85 for every $100 collected — with Revenue Discovery Systems, but Bowie said the department of revenue has more enforcement power.

Dallas County Probate Judge Kim Ballard previously said the city’s shortage was puzzling because city businesses also pay the county’s taxes. Ballard said the county hasn’t seen any noticeable difference in its tax revenue.

Bowie and Williamson said they are also unsure of the reasoning behind the shortage, but proposed several possibilities.

One such possibility, Williamson said, is that businesses were simply not paying the city’s sales tax to save money.

Bowie suggested Selma residents may have simply shopped less in the city limits.

With the holiday shopping season wrapping up, Williamson said the city should see further increases in sales tax revenue, leading to an increase in the quality of city services.

“We really won’t have the results of Christmas sales tax until February, but I believe it will increase a bit next month and in the next couple of months,” Williamson said. “More tax money allows the city to spend more on day-to-day operations. This year (2013) was just either the worst year economically Selma ever had or one of the largest rip-offs the city has seen.”