Sales tax income jumps
Grass Valley’s income from sales taxes jumped in the third quarter of last year, due largely to the rise in gasoline prices during the same time.
With prices hitting well over $3 a gallon in fall 2005, and with sales tax as a percentage of sales, income to the city from service stations grew nearly 26 percent over the same quarter in 2004. That was the biggest year-to-year growth of any sector, according to a recent city report.
That news made sense to Peter Baran, new owner of the independently franchised P&S 76 Grass Valley station on Nevada City Highway.
His station is located in the Glenbrook Basin, in an area the city annexed in the fiscal year of 2004-05. Annexed areas also are boosting sales tax revenues to the city, according to the report prepared by The HdL Companies, a tax audit company based in Diamond Bar.
“There are three stations here: us, the Arco across the street and Flyers,” Baran said. He estimated each station sells at least 100,000 gallons to 150,000 gallons of gasoline each month.
Sales tax collection also has grown at the Robinson’s gasoline station and convenience store at East Main and Bennett streets. Family-run Robinson Enterprises Inc. owns the station.
“Prices are up, but people don’t want to stop driving their SUVs,” laughed manager Ken Croker.
The city took in nearly $1.3 million in sales tax revenue from all industries from July to September 2005. For the same quarter in 2004, the city took in about $893,000. However, when seasonal and accounting anomalies were factored out of the raw numbers, overall revenue rose just over 23 percent from year to year.
In raw numbers, the top 10 sectors contributing sales taxes in Grass Valley for the third quarter in 2005 were, in order:
• New vehicle dealerships, $235,000
• Service stations, $120,000
• Grocery/liquor stores, $80,000
• Contractors, $57,000
• Restaurants (no alcohol), $52,000
• Lumber/building materials, $51,000
• Petroleum products/equipment, $46,000
• Department stores, $41,000
• Restaurants (beer & wine), $40,000
• Automotive supply, $40,000
Additional revenue for the quarter of $238,000 came to the city from Nevada County and the state of California.
The income goes into the city’s General Fund.
As part of the city’s annexation agreements with Nevada County, $396,000 will be paid to the county for the fiscal year 2005/2006, according to city records.
To contact staff writer Trina Kleist, e-mail trinak@theunion .com or call 477-4231.
VFor each gallon of gasoline, according to the California Energy Commission, you pay in taxes:
• 18.4 cents in federal excise taxes
• 18 cents in California excise taxes
• 7.375% in state and local sales taxes
For more information:
• Fuel taxes in California:
• Taxes by type of fuel:
• Fuel tax rates by state:
– Trina Kleist
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