First quarter sales tax sluggish for Nevada City | TheUnion.com
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First quarter sales tax sluggish for Nevada City

Sales tax revenues from the first fiscal quarter of January through March were 9.5 percent lower this year in Nevada City than the same period last year, according to a market analysis provided by HdL Companies.

The bitter news was not unexpected, said Nevada City Manager David Brennan at Wednesday’s meeting of the Nevada City Council.

“This is in line for what the budget projection was,” Brennan said.



“We kind of expected this dip and have adjusted for it.”

Gross receipts from the first 2012 fiscal quarter were approximately $871,139, which dropped to $870,673 this year, HdL’s figures show.




The down sales tax numbers were due to a number of factors, Brennan said, including a significant drop in sales tax from the business and industry sector, particularly from a dependence on a few large businesses in that category.

HdL’s analysis indicates the drop is mostly attributed to a decline in purchases of electrical equipment and bulk fuel.

Sales tax from that category was less than half last year’s approximately $37,000 revenues in the first fiscal quarter, according to HdL.

Among Nevada City’s top 25 sales tax producers, JH Petroleum, Robinson Enterprises and Superior Propane are businesses that fall in that sluggish sector, according to HdL.

But there were some positive indicators amid the slump, Brennan noted.

The restaurant and hotel business sector saw an increase in sales compared to last year, according to HdL, as well as the building and construction sector, although less pronounced than the hospitality industry increase.

“Our tourism trade was on the upward trend,” Brennan noted of the fiscal quarter.

“Construction has started to move upward,” he said. “That is also a good sign.”

Sales and use tax receipts were up nearly 5 percent for Nevada County as a whole and up 6.5 percent overall in California.

To contact Staff Writer Christopher Rosacker, email crosacker@theunion.com or call (530) 477-4236.


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