Anderson gains from 4th quarter sales tax exceed expectations

Despite a down economy, the City of Anderson enjoyed a 1.62 percent increase in gross sales tax receipts in the fourth quarter of 2008 when compared to the same quarter of 2007.

Called a "pleasant surprise" by Anderson City Manager Scott Morgan, the small increase runs counter to the projected decline of 6 percent to 8 percent, he said. Anderson was the only Shasta County entity to exhibit an increase in gross sales tax receipts.

"Although obviously small, its still better to have an increase than a decrease," Morgan said.

The fourth quarter includes Christmas and Thanksgiving and is the most lucrative for the city, Morgan said. The total receipt for the fourth quarter in 2008 amounted to $593,553.

Anderson's gross sales tax receipt figure is calculated as one cent on every dollar of the 7.25 percent sales tax spent in the city.

As of April 1, the sales tax rate throughout California will increase to 8.5 percent as a way to balance the state's record-setting budget deficit.

"The 1 percent tax rate increase will expire on either July 1, 2011, or July 1, 2012, depending upon whether the voters approve the proposed Budget Stabilization constitutional amendment in a statewide election to be held on May 19," according to the State Board of Equalization's Web site at www.boe.ca.gov

Gross sales tax receipts in Anderson for 2008 totaled $2,350,592 — a 2.87 percent increase over 2007, according to Morgan.

"I'm excited (sales tax revenue) was up . . . but I expect, at some point, to see some sort of decline," Mayor Butch Schaefer said, noting several recent business vacancies.

Morgan supposed that the buoyancy in sales tax receipts was due in part to "fairly high fuel prices and some store openings" earlier in the year. Statistics regarding the make-up of sales tax revenues will be available in a month, Morgan added.

Shasta County received $489,395 in fourth-quarter sales tax revenues for a decline of .98 percent when comparing that same quarter in 2007 and 2008, according to Shasta County Administrative Fiscal Chief Bebe Palin.

Comparing calendar year 2007 to 2008 for unincorporated Shasta County, sales and use tax revenue declined 0.7 percent to $2,346,831 for a loss of $16,603.