Sales tax revenues continue to fall Sales tax revenues continue to fall (February 04, 2004)

** Latest quarterly report shows 4 percent drop in Menlo Park

By Rebecca Wallace

Almanac Staff Writer

Sales tax revenue, the largest chunk of income for the Menlo Park city government, continues to fall, according to the most recent report.

During the third quarter of 2003, which ended in September, total sales tax revenues were $1.45 million, down 4.23 percent from the year-earlier period, Finance Director Uma Chokkalingam said in a January 20 report to the City Council.

The sectors seeing the largest declines were business-to-business, which fell 22 percent to $413,599; and transportation, which dropped 11 percent to $353,961. As it has in previous quarters, the decline in the transportation sector seems to mirror the falling numbers of auto sales nationwide, Ms. Chokkalingam said.

The retail sector rose 42 percent to $348,403, but Ms. Chokkalingam said that number is artificially inflated because it appears that one retail taxpayer in the Sand Hill/Sharon Heights area reported revenue for the entire year, rather than for one quarter.

Retail sales downtown declined 8 percent from the year-earlier period to $117,406.

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

With the aim of boosting sales tax revenue, the City Council last year created a new city position of business development manager to work to retain and attract businesses, and help them be more successful. David Johnson was hired and joined the staff in September.

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