Bakersfield Sales Tax Collection DOWN 8.9%–Forced to Raise Fees to Cover Massive Shortfall

California is in a Depression. While the Texas collection of sales tax was up 8.6% in May, California was down 2.3%. In Bakersfield it is much worse. For the first quarter of this year its sales tax collection was down 8.9%. That means the people of the town are not spending money, do not have the money to spend. Add to that the impending July 1 minimum wage increase, the next ObamaCare premium is due and the city is going to make up for the lost revenues by raising fees and the cost of government services.

“The remaining $3.3 million is expected to come from revenue — including growth in city building permits, business licenses and charges for service.

Most significantly Wednesday, the council will consider increasing “most” building fees by 8 percent, as part of increases to its Master Fee Schedule.”

WhiteHouseMoney

Drop in sales tax prompts city to trim budget

BY THEO DOUGLAS, Californian, 6/25/14
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According to the Board’s figures, the city took a nearly $1.7 million hit, earning more than $16.9 million for the first quarter of 2014, compared to nearly $18.6 million during the first quarter of 2013.

Based on the $70.4 million Bakersfield earned in sales tax during the 2012-2013 fiscal year, which ended June 30, 2013, city officials projected a 6 percent rise in sales tax during the 2013-2014 fiscal year — which ends Monday — and 3 percent growth for the 2014-2015 fiscal year.

Now, city officials have revised that 6 percent growth estimate to 2 percent.

Instead of collecting an estimated $74.6 million in sales tax through June 30, the city estimates collecting $71.8 million.

Officials estimate Bakersfield will earn $5.7 million less in sales tax from July 1, 2013, through June 30, 2015.

* Changing the source for $395,000 the city plans to spend on critical capital projects. Instead of paying for these from the general fund, the city will pay for these from its facility replacement reserve fund.

* The minimum permitting fee for residential construction or renovations valued at less than $40,000 would rise from $52 to $200.

* The minimum permitting fee for commercial construction or renovations valued at less than $40,000 would rise from $52 to $260.

* Permitting costs to install residential solar would rise from $124 to $185.

* The minimum cost for a so-called “flat fee permit” — a water line or gas line repair, or a water heater installation — would rise from $52 to $75.

* Permitting cost for a new patio would rise from $104 to $175.

* Cost for a re-roofing permit would rise from $104 to $150.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Gotta Gedada Displace says

    Rent, healthcare and Groceries are untaxed, THAT’S all folks can afford! How long before the Vampire Ba$#[email protected]$ in Sacramento extend Sales tax to cover THAT “Lost Revenue”?? Hopefully longer than I’m around!

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