Board OK's "tax free holiday," again!
At the Tuesday B.O.A. meeting our Alderman voted to have another "Tax Free Weekend" this year in Crestwood!
We did this last year, and not even His Honor the mayor could substantiate the results. I believe Mr. Eckrich has stated that there is no certain way to measure results in increased shopping in Crestwood when this is in effect, so why have it?
These are serious times for Crestwood folks. We are asked to extend Prop "S" to 2013 because we need the TAX monies, we may well see a tax increase on the next ballot if some have their way, and now we take a weekend off from taxes? I don't get it.
As far as the tax holiday goes we and Sunset Hills may well be the only communities in our area to offer it. The question I have is what happens when we give up a "Back to school" weekend of sales, (and the associated tax monies) when the weekend is over?
His Honor would like you to believe that people will return in droves to "buy Crestwood," when in fact the economy, gasoline prices, and excess travel are all factors that will keep people in their own neighborhoods.
This entire line of logic is flawed beyond the pale. We have a Federal government who say they "saved" 600,000 job's, knowing it can't be proven one way or the other, and now we have a Board going along with a "plan" that also has no grounding in facts.
Ladies and Gentlemen of the Board, I implore you to start the "fiscal responsibility" we need in Crestwood to survive, after all there is just so much money available, and we (unlike the Fed's) cant print it!
(click the header for the new Federal ideas on how to fix Crestwood!)
Tom Ford
NO. 638
We did this last year, and not even His Honor the mayor could substantiate the results. I believe Mr. Eckrich has stated that there is no certain way to measure results in increased shopping in Crestwood when this is in effect, so why have it?
These are serious times for Crestwood folks. We are asked to extend Prop "S" to 2013 because we need the TAX monies, we may well see a tax increase on the next ballot if some have their way, and now we take a weekend off from taxes? I don't get it.
As far as the tax holiday goes we and Sunset Hills may well be the only communities in our area to offer it. The question I have is what happens when we give up a "Back to school" weekend of sales, (and the associated tax monies) when the weekend is over?
His Honor would like you to believe that people will return in droves to "buy Crestwood," when in fact the economy, gasoline prices, and excess travel are all factors that will keep people in their own neighborhoods.
This entire line of logic is flawed beyond the pale. We have a Federal government who say they "saved" 600,000 job's, knowing it can't be proven one way or the other, and now we have a Board going along with a "plan" that also has no grounding in facts.
Ladies and Gentlemen of the Board, I implore you to start the "fiscal responsibility" we need in Crestwood to survive, after all there is just so much money available, and we (unlike the Fed's) cant print it!
(click the header for the new Federal ideas on how to fix Crestwood!)
Tom Ford
NO. 638
posted by Crestwood Independent at 18:01
17 Comments:
who voted which way?
Tax Holiday
Once again the Crestwood BOA approves participation in the back to school sales tax holiday. The logic used to justify giving tax money away when at the same time crying about receiving insufficient revenue to sustain the city escapes me.
Ms. Beezley, alderman for ward 4, stated it is imperative we support business by participating in the sales tax holiday. Please, fellow tax payers, remember we supported the business community in 2006 and Dillards closed the doors. We supported the business community in 2008 and Macy’s closed the doors. Need I go on?
John Foote, Alderman for Ward 4, supported and campaigned for the last attempt to increase your taxes and implied we only give up three days of taxes. Please John, do not ask for more when you give it away so easily.
The mayor read a letter from the chairman, Forrest Miller, of the Crestwood Economic Development Commission who supported participation in the tax holiday. When was last time the economic development commission had a meeting? What has this commission accomplished? Look at the Crestwood business corridor and ask this commission what happened?
Voters on the "tax holiday."
yea: Foote, Duncan, Schlink, Pickel, Wallach.
Absent: Duchild.
Nay: Miguel.
You could have fooled me here, I thought I would have seen Schlink, and Wallach vote with Miguel, but, no.
Tom Ford
Awwww, to bad. Guess they turned on you. And what is with Duchild not showing up. I guess its alright as long as the puppet master says so.
Alderman Duchild is on vacation with his family (I suspect that's OK with you, no!)
The others, well?
Tom Ford
I try to buy everything I can in Crestwood. We get almost all of our stuff at Sams, Shop and Save, and Walgreens, and even gas at Sams.
But...the "tax holiday" has saved us quite a lot by buying as much as we can of clothes, and school supplies on that weekend. When Crestwood has the tax break, we get the supplies at the Crestwood Office Max. We prefer to get clothes at Target for various reasons, but of course there is not one in Crestwood, and Kirkwood does not give the tax break, so we have been going to south county in recent years.
We support Crestwood as much as possible, but cannot waste the small amount of money we have, when there is substantial savings elsewhere.
Tom,
I agree. We have one of the highest sales tax rates in the area. So when Crestwood participates we are simply giving up that sales tax to stay even with the taxes of other non participating communities. In actuality, people don't save any money by shopping Crestwood. By the way, Wallach voted with Miguel.
8:01 AM blogger: I stand corrected, thank you for that info on Alderman Wallach!
You know it all depends on where you shop in Crestwood. If you go to a "TIF" center, your paying more for the privilege than say other spots.
That's why a TIF, TDD, CID is a lousy idea for ALL but the developer who get's well on our money!
Tom Ford
Mr. Ford
Just how much money are we talking about the city losing here? If we had opted out would we continue to collect only our 1.5% tax or would we continue to collect the entire 7.575%? Is the state giving up their 4.225% and St. Louis county their 2.75%? If we can't collect the State and County Sales tax anyway, how much are we losing by giving up our 1.5%?
10:10 AM blogger: Bingo! That is exactly the point, "how much are we loosing?"
We will never know the exact amount, but one thing is for sure, we can't afford to loose one dime given the conditions we face.
I think it's a bad idea, and it will really show up IF the City decides that they want a tax increase in the future!
Tom Ford
"We will never know the exact amount, but one thing is for sure, we can't afford to loose one dime given the conditions we face.
I think it's a bad idea, and it will really show up IF the City decides that they want a tax increase in the future!"
EXACTLY Tom. That's why I reposted your post. You are right on the mark!
10:08 AM, June 13, 2009
Some estimates say we lose $50,000 to $70,000 - maybe more. It's difficult to quantify. But...if it is that amount or more, that's equal to a salary (or two) of a city employee.
Sales tax holidays take place during a heavy shopping season - back to school time. Parents, adolescents, and young adults returning to college are out shopping. Since it is a heavy shopping season anyway, it is difficult to quantify if the sales tax holiday has any effect, if at all.
Not collecting sales tax during this time (or a part of this time) is like leaving your Air Conditioning off during the hottest days of summer.
11:35 AM Blogger: Thank you!
Tom Ford
It seems simple enough to get an approximate cost to the city by taking the 1st Qtr sales tax numbers reported by Mr. Brewer.
Ist Qtr sales taxes were $1,208,112. That divided by 3 months is an average of $402,704 per month. Divide that by the 31 days in August, the month of the sales tax holiday and that is $12,990.45 per day times the 3 day tax holiday and it will cost the city approximately $38,971.35 in 3 days worth of taxes. That is the city's 1.5%. Keep in mind we don't get the Missouri or St. Louis County money anyway so it doesn't matter to Crestwood if it is not collected. Now comes the unknown, how much more than the $38,971.35 lost will be collected on items that are not tax exempt.
9:42 AM blogger: That would work if ALL things remained static, that is if your model saw the same shopping trend, and the exact same spending pattern from month to month.
Unfortunately this year everything is completely different as it relates to the shopping habit's of the purchasing public.
In past years retailers could "trend" a month to month (Last year V This year) buying cycle and for the most part be on the money.
This year we are in the midst of a recession (depression?) that is not at all tracking friendly.
That said, your way is as good as we can get to trace the sales, but as I said, they still are not at all reliable, so..........
Tom Ford
Personally, I want to thank the mayor and the board members who voted for this.
So thank you!
The voters will be reminded of your support of the sales tax holiday the next time you propose a tax increase!
So again, thank you!
2:45 PM blogger: Thank you for remembering them, and please do not forget them in the next election!
And for good measure, when they line up to tell you we must have a tax increase, remind them then also!
Tom Ford
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