Robust recovery? Sales tax revenue up 12% in Dixon

DIXON – Sales tax revenue is up overall in Dixon, and more people are returning to local businesses to shop.

City Finance Director Becky Fredericks said the city has seen a 12% growth in sales tax compared with 2020

Brick-and-mortar sales also are on the rise, up almost 18% in July compared with 2020, she said. Sales revenue from brick-and-mortar locations came in at $324,000 in July fiscal 2022 compared with $280,000 in fiscal 2020.

Online sales tax decreased about 15.7%, meaning more people are choosing to shop locally rather than through online outlets. Many such online vendors experienced a large increase in business because of the physical and in-person limitations of the coronavirus pandemic.

Fredericks recently presented a financial overview to the City Council comparing current revenues and expenses with previous years.

“Once again with our general fund revenues, we are seeing growth compared to last year,” Fredericks said. “And I think looking at a 4-year period, especially with COVID-19, it’s good to see.”

With sales tax through Aug. 31, the city brought in $1.4 million compared with $1.15 million this time in 2020. Years before that netted the city $1.17 million and $1.12 million, respectively.

“This fiscal year, we’ve continued to see the increase in our sales tax revenue,” Fredericks said.

Mayor Li Arellano Jr. said a contributing factor to a workforce shortage not often mentioned is an increase in demand among some industries.

“Some parts of the economy are just hot, and they need more people because they’re selling more things,” he said. “Which is a good problem to have, if there are good problems.”