I have been asked by many residents about the number of businesses that have been leaving our city. They ask why the businesses leave and what the effects are to the city.
Some of the businesses (K-Mart, Albertsons, Circuit City, etc.) left because of corporate downsizing as a result of the recession. The reason our stores were selected over others was that they were not performing as well as other stores in the chains. The performance is affected by Taylorsville residents not shopping in their Taylorsville stores.
We are now faced with losing another large retail store. R.C. Willey recently announced that they would be closing their Taylorsville location. I met with the CEO to discuss the matter. He indicated to me that their data shows that Taylorsville residents tend to shop at their Murray store. If we do not shop at our Taylorsville stores, they will close.
These closures greatly affect the city and you as a taxpayer. About one-third of the city's budget comes from sale tax revenues. If a person spends $100 in a retail store, 1 percent, or $1 of that expenditure comes back to the city. It may not seem like a lot but when you multiply that by the 19,000 families in Taylorsville, it adds up quickly.
The loss of a major retailer in the city can reduce the sale tax revenue by $300,000-$400,000. A loss of $400,000 in sales tax revenue would require a 10 percent increase in property tax to make up the difference. No one likes property tax increases but services like public safety and road maintenance need to be paid for and if we don’t have a strong business base, tax payers have to make up the difference.
The bottom line is to please shop at Taylorsville businesses. You will keep them healthy and also support our city's sales tax base rather than another city's. When we don’t shop in Taylorsville, it results in higher taxes.