News
The most recent sales tax figures for the county, city of Grass Valley and Nevada City paint a gloomy picture of the local economy — and that was before the credit crisis, stock market plunge and freeze-up in consumer spending occurred in recent months.
Statewide, the decline in sales tax receipts is expected to last through fiscal 2009-2010, according to a report compiled for each of the local governments by HdL Companies.
Grass Valley’s sales tax receipts were down 13 percent for the April-June period compared with the previous year — the latest figures available — while the unincorporated county’s tax receipts were down 1 percent.
Nevada City’s tax receipts were up 13 percent in April-June, largely benefiting from high gasoline prices and “double-up” of some previously late payments. Since then gas prices are sharply lower and two of the city’s top 25 sales tax producers — Broad Street Furnishings and Stonehouse restaurant — are out of business.
“Adjusted for reporting aberrations, taxable sales for all of Nevada County declined 7.8 percent over the comparable time period while the Far North area, as a whole, was down 2.6 percent,” the report said.
The Far North refers to Butte, Humboldt, Lassen, Nevada, Siskiyou and Tehama counties.
For unincorporated Nevada County, gross receipts totaled $681,358 for the April-June period. For Grass Valley, the figure was $1.47 million for the same period. For Nevada City, gross receipts were $310,133 for the April-June period.
The hardest-hit businesses in the county were contractors, new motor vehicle dealers, lumber and building materials, and trailers and RVs, said the report by HdL, a Los Angeles area company that provides sales tax analysis for governments.
The report added: “Local agencies will not see the results of their July through September sales until the end of December. However, preliminary data from various government and trade association surveys indicate that taxable sales will continue to fall.”
Automakers are reporting another quarter of double-digit declines and most analysts don’t expect auto sales to recover until 2010, the report said. Retailers also are reporting sluggish autumn sales.
It concluded: “Although institutional and public projects will help, a significant recovery in sales tax from building-related goods and services is not expected until after 2010.”
Statewide, the decline in sales tax receipts is expected to last through fiscal 2009-2010, according to a report compiled for each of the local governments by HdL Companies.
Grass Valley’s sales tax receipts were down 13 percent for the April-June period compared with the previous year — the latest figures available — while the unincorporated county’s tax receipts were down 1 percent.
Nevada City’s tax receipts were up 13 percent in April-June, largely benefiting from high gasoline prices and “double-up” of some previously late payments. Since then gas prices are sharply lower and two of the city’s top 25 sales tax producers — Broad Street Furnishings and Stonehouse restaurant — are out of business.
“Adjusted for reporting aberrations, taxable sales for all of Nevada County declined 7.8 percent over the comparable time period while the Far North area, as a whole, was down 2.6 percent,” the report said.
The Far North refers to Butte, Humboldt, Lassen, Nevada, Siskiyou and Tehama counties.
For unincorporated Nevada County, gross receipts totaled $681,358 for the April-June period. For Grass Valley, the figure was $1.47 million for the same period. For Nevada City, gross receipts were $310,133 for the April-June period.
The hardest-hit businesses in the county were contractors, new motor vehicle dealers, lumber and building materials, and trailers and RVs, said the report by HdL, a Los Angeles area company that provides sales tax analysis for governments.
The report added: “Local agencies will not see the results of their July through September sales until the end of December. However, preliminary data from various government and trade association surveys indicate that taxable sales will continue to fall.”
Automakers are reporting another quarter of double-digit declines and most analysts don’t expect auto sales to recover until 2010, the report said. Retailers also are reporting sluggish autumn sales.
It concluded: “Although institutional and public projects will help, a significant recovery in sales tax from building-related goods and services is not expected until after 2010.”
