Slowdown In Buying Could Mean Fewer Cops
MECCA – New Riverside County sales tax numbers are in and they don’t look good. Severe cuts in revenue could mean further cuts in county services including police and fire.
Sheriff’s deputies, firefighters, and county health services are paid in large part by sales tax revenues. If people don’t buy things, then emergency services are cut.
Riverside County’s new sales tax numbers are bad, and have few silver linings. Palm Springs is one of those silver linings. Sales tax revenues are down here, but this city has done better than any other in the Desert.
Store owner Arthur MacMillan says, “It seems that the customers that come in the stores these days, they’re more willing to open up their wallet and make a purchase. Whereas before, they’d come in and browse, maybe hold back.”
Just across city lines, Cathedral City has been hit much harder. Shoppers are picking up the deals from stores going out of business.
As Beverly Collard walks out of Rooms Express, she says, “They’re having a sale. Every little bit helps. We help them they help us.”
Salon owners in Cathedral City notice the changing shopping patterns affecting individual cities.
“I see people shopping around more, where normally they’d be on El Paseo getting their hair done, or down in Palm Springs. I think Cathedral City is a community for families, now they feel like the prices are more in balance,” explains Tammy Francis of Scandalous Salon.
Riverside County had a 40 percent drop in sales tax from gas stations. It’s the second largest source of sales tax revenue.
Tom Freeman with Riverside County’s Economic Development Agency is now saying what many have suspected for years: Oil refineries are manipulating the price of gas.
Riverside county officials also say the “Cash For Clunkers” program actually hurt sales tax revenues. That claim is disputed by local auto dealers.
Scott Simmers of Palm Springs Ford counters, “What the County of Riverside is saying is, the $4,500 or $3,500 depending on what you qualify for was not qualifying for sales tax. That’s where they feel they missed it. But if you don’t have a car sale, you don’t generate any tax revenue.”
Cathedral City taxpayer money is being used to set-up and promote an outdoor car sale in hopes of jump starting sales tax revenues here.
It may not surprise you that some of the county’s top cash cows in sales tax revenue are the swanky stores on El Paseo, including Coach. Believe it or not, the Subway restaurant at the Mecca Travel Center is listed as one of the county’s top businesses. Perhaps not too surprising considering most Highway 86 truckers seem to stop here and spend some cash.
When it comes to growth, construction projects are still scattered across the Coachella Valley, including a Palm Springs condo complex we spotted. Recovery is not expected until next summer.
Riverside County lists the following businesses as its top sales tax producers in alphabetical order:
Albertsons, Arco Travel Zone, Best Buy, Circle K, Circle K 76 Gas Stations, Coach, Costco e-commerce sales, Edward Don & Company, Flying J Travel Plaza, G&M Oil, Gucci America, HG Weber & Company, Home Depot, Lowes, Mecca Travel Center Subway, Mobile Modular Management, Morongo Shell, Pedder Nissan, Polo Ralph Lauren, Ralphs, Stater Bros, Superior Ready Mix Concrete, Target, Vons, Wal Mart DVD Rentals.
