Gilroy is a regional destination “capturing” sales tax in excess of what residents alone typically spend, according to the City of Gilroy’s third quarter sales tax update.
Vehicle sales and apparel stores generated the most sales tax revenue for Gilroy, while department stores, gas service stations and retail building materials did their part as well.
According to Jordan Levine, an economist with Beacon Economics, “home prices are rising, people are buying more cars, apartment vacancies are decreasing and commercial Real Estate is on the upswing” – all factors that bolster the economy and lead to increased sales tax, the City’s report notes.
The Gilroy Outlet Center tallied $748,773 in sales tax revenues, a 6.8 percent decline from 2012, while auto dealers were at $385,926, a 36.3 percent increase from 2012. The downtown core, excluding auto dealers and service stations, also saw a 17.3 percent boost from 2012.
Among the top 25 sales/use tax contributors, which generated approximately 43.5 percent of Gilroy’s total sales and use tax revenue, were gas stations such as Gilroy Gas & Mini-Mart, Valero Service Stations and Chevron Service Stations; car dealerships such as Gilroy Toyota, South County Nissan and South County Chrysler Jeep Dodger Ram; retailers, including Best Buy, Calvin Klein, Polo Ralph Lauren; and wholesalers like Costco Wholesale and Walmart.
According to the Business Activity Performance Analysis, Gilroy’s projected third quarter 2013 final results were at $3,204,625, a 0.6 percent increase from the third quarter 2012.

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