City reports strong sales tax numbers

Sak's Fifth Avenue in the Gilroy Outlets.

Gilroy sales tax revenues continue to rise, according to figures released by the city.

The Garlic Capital experienced a 9.2 percent leap in sales tax revenues during the July to September months in 2011 – compared with the same period in 2010 – good enough for fourth place out of Santa Clara County’s 15 cities over the stretch.

It was the city’s seventh consecutive quarter of growing sales tax revenues, according to a city news release.

The steady growth should be attributed to Gilroy’s status as a “capture community,” the city announced, which means that “sales tax revenue generated by local retailers is greater than what would be expected if the customer base was primarily Gilroy residents. This demonstrates Gilroy’s attractiveness as a regional draw for shoppers.”

“The encouraging third quarter sales tax data, and Gilroy’s strong showing as compared to other cities in Santa Clara County, illustrates the importance of Gilroy as a regional center for destination shopping,” Gilroy City Administrator Tom Haglund said in the release.

The biggest sales tax gains came from vehicle sales, apparel stores and service stations, according to the city.

The city says about one-third of its general fund revenues come from sales tax, much of which is derived from “destination shoppers.”

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