San Benito County businesses are losing an estimated $153
million a year in taxable sales, according to a recently released
state financial report.
Using information gathered during the 2000 state census, the
state Board of Equalization estimated that San Benito County has a
potential annual retail sales of $570.1 million. However, local
businesses realized approximately $416.9 million, meaning there was
$153.2 million or 26.9 percent of the potential retail sales being
spent outside the county.
San Benito County businesses are losing an estimated $153 million a year in taxable sales, according to a recently released state financial report.
Using information gathered during the 2000 state census, the state Board of Equalization estimated that San Benito County has potential annual retail sales of $570.1 million. However, local businesses realized approximately $416.9 million, meaning there was $153.2 million or 26.9 percent of the potential retail sales being spent outside the county.
“I have to say that number scares me because that is a lot of money,” said Theresa Kiernan, executive director of the San Benito County Chamber of Commerce. “That means the local businesses are not getting the sales, and we at the chamber are in the business of helping them stay in business as well as drawing new businesses.”
The loss in potential sales revenue is believed to come largely from the more than 11,100 residents who commute outside the community for work and then spend their dollars near their workplaces, according to business and political officials. Nearly half of the county’s working population – 48.5 percent – commutes outside the county.
“You start running into problems when you have those kinds of statistics out there where there are so many people who leave the county to work elsewhere,” Kiernan said.
The $153.2 million revenue leak also translates into a loss of about $1.53 million in sales taxes.
By law, Hollister and the county are each entitled to 1 percent of every dollar in sales tax generated through local commerce.
“That affects our ability to finance local services,” May said.
The retail sales leakage in 2000 averaged to a loss of nearly $3,000 per county resident or about $10,000 for each household.
Both political and business leaders have for years encouraged residents to keep their buying practices local.
“By spending your money in the community, that creates jobs for people in the county who, in turn, spend their money here, and it keeps on multiplying,” May said.
“It really becomes a challenge finding out how do we get more of that money to stay here,” Kiernan said.
Trying to convince more people to buy within the community, the chamber has adopted a new motto of “Buy locally when you can.”
The chamber has also placed pictures and information about local businesses on its Web site to not only provide information for local customers but to attract patrons from outside the area to help make up some of the revenue that is leaving the county.
Kiernan said there are other benefits to shopping locally.
“You don’t have travel. It adds to that neighborhood atmosphere buying and doing business with each other, and it keeps everybody a little more honest when they know they are buying or selling to someone who lives next door to them,” she said.
