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City sees slight dip in sales tax revenue

Posted: May 26, 2008 12:56 a.m.
Updated: July 27, 2008 5:02 a.m.
 
Amid an ailing economy, the city's sales tax revenue dipped .6 percent in the last three months of 2007 compared to the same time period in 2006, according to data released by the city on Friday.

"This is a difficult time for many business sectors, for government and for the economy," city Treasurer Darren Hernandez said in a statement. "It is more important than ever to shop within the city of Santa Clarita and support our local businesses."

In the fourth quarter spanning October through December, the county saw an overall decrease of 2.2 percent and the state saw a decrease of
2.6 percent.

A slowdown in the construction industry meant a 5.3 percent decrease in construction-related sales, which includes wholesale and retail building materials.

Tax revenue from contractors dropped 26 percent and revenue from lumber and building materials was 34 percent lower than the same quarter in 2006.

The city did, however, see a 21 percent increase from specialty stores and saw a 24 percent increase from service stations. The city also saw gains of 14 percent for plumbing and electrical supplies, 11 percent from grocery liquor sales and 6 percent for heavy industrial supplies.

City Manager Ken Pulskamp said this month that sales tax is the largest form of revenue for the city and usually jumps about 4 percent every year. This next budget year, which begins in July, will likely see no growth in that area for the first time, he said.

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