Our staff has been monitoring many key economic indicators regarding our local, state, and federal economy. Some of our articles have included factory closings, displaced personnel - where we have even identified where former businesses have decided to relocate. Sometimes this activity draws 'ire' from some of the establishment because it makes them out to look bad - thus damaging their re-election hopes and aspirations.
Today we will report on Wicomico's historical sales tax collections from FY 2003 - FY 2010.
Wicomico's Sales Tax Collections
2003 - $55,487,221
2004 - $60,701,335
2005 - $68,168,174
2006 - $76,160,447
2007 - $76,254,289
2008 - $75,892,624 - (MD sales tax rate increased from 5% to 6%)
2009 - $74,451,792
2010 - $70,996,975
Today we will report on Wicomico's historical sales tax collections from FY 2003 - FY 2010.
Wicomico's Sales Tax Collections
2003 - $55,487,221
2004 - $60,701,335
2005 - $68,168,174
2006 - $76,160,447
2007 - $76,254,289
2008 - $75,892,624 - (MD sales tax rate increased from 5% to 6%)
2009 - $74,451,792
2010 - $70,996,975
Pay particular attention as to what happened when our Maryland General Assembly increased the sales rate on January 1, 2008 from 5% to 6%. One would ordinarily believe that the sales tax collections would have increased by 20%. I guess this just goes to prove - once again - that the supply law of economics rules as 'demand destruction' sets-in. People and businesses have decided to take their business to DE or elsewhere. Wicomico's citizens ought to think twice before they commit our County to take on another school debt obligation under the current economic conditions.
15 comments:
Tax & spend is what liberal government knows. There is no accountability,no apologies for failed policies.Hopefully folks will go to the polls to voice their displeasure and ouster the people that have put us in this position.
The Law of Supply & Demand again proves irrefutable; increase cost, demand goes down. Seems like 5% was the level of elasticity where folks started finding alternatives.
It's no wonder more booze and cigarettes are sold in little ole Delmar, De than all of Wicomico County. The fever is spreading and can not be easily abated.
This is very compelling information. I have not seen this reported by any other media.
Look at what happened when the State decided to increase the sales tax rate - the amount of revenue actually went down - wow.
What is happening to our Country? Just this morning I heard where another State - Rhode Island - is in dire financial straits. The narrator said the unfunded pension plan was in excess of 9 billion dollars.
A trend line projection shows the revenue should return and perhaps, exceed previous highs over the next 5 years.
No guarantee but it's not time to panic.
While we started by just buying our booze there - it has widened on its own - the other shops are right there on the way too - so now we get our gas and groceries there too. If they opened a Home Depot or Lowes there in Delmar (on the DE side), the ones in Salisbury would go under in a heartbeat!
anonymous 2:39, there's an incredible Lowe's just north of Delmar.
I noticed there are some signs up on RT 13 - Delmar, DE near the Interstate Battery Distributor - that Aquarius Irrigation Supply has now moved from the old ES Adkins building in Salisbury, MD to Delmar, DE.
Also - Midway RV has moved from Maryland to Delaware also.
I predict that one or possibly several of the big box retailers on 13 north in Salisbury will close before the end of next year.
All of the big box retailers need steady growth in revenue in order to survive. According to these stats - that ain't happening - at least not here locally.
It's nice to live close to the delaware border. We plan on moving there within the next couple of years.
It happens on a nation wide level as well. Every time the libtards pass a tax increase, the revenues go down not up.
The State of Maryland is still spending more money than we are taking-in. According to the latest Board of Estimates - we are going to be almost 2 billion dollars in hock this legislative session. I do not understand why the State will not cut spending.
And the State's pension system is also in shambles. Maryland has already been warned by Moody's rating agency about the underfunded State pension system.
I do not know about how the rest of the commenters feel - but I believe the economy is getting worse.
No jobs, higher taxes, and I do not see any relief in sight.
5:06 I am with you!
As long as Maryland is the way it is, we here on the Lower Shore will suffer because it drives business to Delaware.
They can hike the sales tax all they want, but if people can't buy stuff, there's no tax collected. The hike can't fill the void of the dropped volume.
I told the wife to stock up. Harder times are coming.
3:59p The way the State will cut will be to pass it on to the county level and muncipal level. It's been proven in the past.
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