City sales tax income falls, but not as fast City sales tax income falls, but not as fast (October 29, 2003)

By Rebecca Wallace
Almanac Staff Writer

Menlo Park officials have hoped before that the city's sagging sales tax revenues would stabilize. With the results in from the second quarter of 2003, hopes are rising again as the revenue decline appears to be slowing.

Total sales tax revenues for the city were $1.36 million, down 8 percent from the year-earlier period. That decline is smaller than in the first quarter of 2003, when adjusted revenues of about $1.3 million fell 15 percent from the year-earlier period.

"I definitely wouldn't be pleased, but at least I'm not alarmed," city Finance Director Uma Chokkalingam said of the figures from 2003's second quarter. "At least it's stabilizing."

The transportation sector, which includes auto sales, continues to be a concern, she said. Its sales tax revenues dropped about 16 percent from the year-earlier period to $326,492, even though auto sales appear to be picking up a bit in other areas of the country, she said.

Retail sales tax revenues downtown declined about 13 percent to $120,098. Overall, retail sales tax revenue sagged about 11 percent to $234,473.

The construction and miscellaneous sectors remained roughly the same, at about $56,000 and $7,000, respectively.

Menlo Park and San Mateo County receive a total of 1 percent, or 1 cent on the dollar, of taxable sales in the city. Of that amount, Menlo Park gets 90 percent and the county takes in 10 percent.

In comparison to the most recent figures, transportation sector revenue in the first quarter of 2003 fell about 19 percent from the year-earlier period, and downtown retail sales tax revenue dropped 22.8 percent.