Let’s look at downtown revitalization as a result of the creation of the ball park.
Texas requires that a mixed beverage gross receipts tax of 6.7% be paid by the owner of the establishment (not the customer) . The state maintains a web site where we can see receipts for each facility (bar, restaurant …) in the state that sells such beverages. Let’s call those places bars for the sake of simplicity.
The file that the state made available in April, 2014 reflects taxes for March and earlier (sometimes a bar will report late). The amount for our bars in 79901 (the downtown district) was $80,020.75. This was before our ball park opened.
The July, 2014 file from the state shows $86,368.28 in receipts for the 79901 area.
Looks good
It appears that we have had a $6,000 or so increase in collections after the ball park opened. That comes to roughly 8%. More beverages were sold.
Except
One thing that is different between July in April is that our ball park was open in July and not for the period represented by the April file.
How much did the ball park contribute to the $86,368.28? The answer is $11,883.52. That means that business for the rest of the 79901 area was down to $74,484.76, a decline of $5,535.99 or almost 7% lower.
To get to real sales numbers, the state says to divide any of the numbers above by 14 and then multiply the result by 100. Using that technique the downtown bars lost $39,542.78 in sales.
The winner is
The state pays the city the money that is collected.
I don’t expect that the bar owners downtown will send thank you notes to the city for cannibalizing their businesses.
We deserve better
Brutus
Posted by Brutus
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