Sales tax revenue is generated by people buying goods locally and making the choice to support their friends and associates who provide goods and services to all of us. Your personal decision on where to spend your hard earned dollars will directly impact what the county, Clearlake and Lakeport can provide for you in terms of law enforcement personnel and others you depend upon to provide the services all residents want.
Local sales taxes for Clearlake, Lakeport and Lake County are sources of revenue that directly fund hundreds of jobs in the county and numerous county and city general fund programs. As an example in the city of Lakeport in the fiscal year 2015 — 2016 the projected total general fund revenue of $4.7 million, which includes $3.2 million in tax revenue. Of this amount $2.2 million comes from sales tax revenue. For the city of Clearlake its 2016 budget reflects anticipated sales tax revenue of $1.5 million with a police department expense of $2.87 million.
The sales tax figure represents 70 percent of the city of Lakeport’s total tax revenue on an annual basis. Looking at it differently, one could say that sales tax revenues support the Lakeport Police Department and a significant amount of the expense associated with operating Lakeport City Hall. These sales tax revenues directly support law enforcement first responders. The sales tax revenue or lack of it impacts every resident in one way or another no matter where they live in Lake County, cities or unincorporated area.
These revenues are produced directly from the sales tax that individuals pay when they buy taxable items at a local store or when they buy a car or other large-ticket item. In Lake County, state law requires the payment of the 7.75 percent sales tax. A portion of that sales tax is distributed by the California Franchise Tax Board directly back to the city of Lakeport, city of Clearlake and the other units of local government in the form of tax revenue checks generally on a quarterly basis. These funds are deposited and used by the cities and the county to issue paychecks to employees and to pay other expenses.
There are direct connections between somebody buying something at a Lake County, Clearlake and Lakeport business store, the payment of a sales tax, the tax revenue payments distributed to the county and the two cities, and city and/or county employee’s paychecks.
Another consideration of spending locally is that increased dollars revolving around our communities will make it more attractive for new businesses to locate in Lake County. Too often we lose businesses because they are not supported by our dollars. Remember the next time you receive a request through email or snail mail to purchase goods and services from out of county, your decision will impact all of us.
The following stated action has been approved by the Lake County Chamber Board of Directors:
Action — The Lake County Chamber of Commerce Government Affairs Team/Committee (GA) will be contacting the CEOs and managers of major employers in Lake County and invite them to a GA Committee meeting to discuss this matter. The chamber will ask the CEOs and managers to go back to their businesses, formally contact and communicate with their employees to help them understand the direct link between people spending locally, their paychecks, and the funding of local employees such as first responders (police officers) and other important local programs that we all depend upon and expect to be provided.
If you have feedback or comments on this column, please contact me.
Ted Mandrones is president of the Lake County Chamber of Commerce.
