Currently, the United States is in a recession and this means that cities are worried about providing services when their tax receipts are down. Many cities get a percentage of the sales tax revenues, but what happens when sales dry up? When recession hits the highest ticket non-essential items are hurt the worst. A family, which is strapped for cash and worried about their budget is not likely to go out and buy a brand new car.
Cities with auto malls know that they are one of the largest revenue generators for the city. Nearly $400 to $500 of every car sold goes into the city coffers due to the sales tax revenue split. When car dealerships are hurting so is the city's budget for important services. Sometimes city's decide to do improvements around their auto malls in order to help car dealerships. Citizens and taxpayers usually complain stating that the money should be spent more wisely due to the recession.
Of course, rather than complain a study should be done and questions need to be answered. Does anyone have the actual average number per car sold? Also if we knew the average price of the cars sold and the average number, then we could figure it out just how much money that is.
One could argue that if assistance to the auto mall or improvements on city property nearby brought in more sales, that the city could then in turn use that money to assist with improvements in neighborhoods and parks boosting the city's image and thus, improving slumping home values. It would be nice to look at the numbers. Maybe someone from the auto dealerships, city hall or someone in the know might help us discuss this with the citizens so everyone understands how the city revenue works and where that money really comes from.
"Lance Winslow" - Online Blog Content Service. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.
Arts & Entertainment