Thursday, December 29, 2011

Sales Tax Revenues Up in Monrovia

Sales tax revenues are on the rise in Monrovia, according to the Mid-Year Budget Review presented to the Monrovia City Council last week. The final sales tax numbers for 2010-11 were 8.5 percent greater than compared to the previous year. The increase can be attributed to a bump in auto sales and from revenue generated by new retail stores such as Living Spaces and Paul's TV, both of which opened in late 2009.

According to the Report, which takes a look at the status of current expenditures and revenues coming in and out of the City:

Sales Tax – The final sales tax numbers for 2010-11 came in at $7,833,616, which was an 8.5% increase over the prior year. This increase included one-time increases due to having a full twelve months of revenue from retail stores Living Spaces and Paul’s TV, which were not included in 2009-10 sales tax numbers. But even then, sales tax activity is showing strong signs of recovery. Revenue from auto sales and leasing are strong again, after two years of huge decreases. Building and construction activity is still flat, as the housing market muddles through more foreclosures and high unemployment. For 2011-12, the current budget is $8,252,502. This anticipated a 5% growth over the prior year. Projecting an 8% growth now will generate an additional $151,859 of revenue.

The trend follows regional and national reports that the economy is in recovery.

The Wall Street Journal reported today that the number of U.S. workers seeking unemployment benefits this month is well below the figure compared to a year ago.

The U.S. Census Bureau reported earlier this month that retail and food services sales were up 6.7 percent in November compared to a year ago, with the largest increase coming from auto sales.

And the Los Angeles County Economic Development Corporation (LAEDC) stated in its Mid-Year Economic Forecast that retail sales would continue to grow -- though the recovery for housing, lease rates, and local government finance is another story, according to the LAEDC.