City Encourages Supporting Local Business While City General Sales Tax Holds Steady
Recent reporting of General sales tax to date reflect steady goods and service consumption in the City of Marshall. General sales tax increased 4% when comparing May of this year to last year, pointing to a resilient local economy. Early projections during the months when Stay at Home measures were in place by Governor Walz were dire. However, comparing 2019 to 2020, sales tax revenue is up approximately 6%.
“General sales tax figures means larger retailers are able to meet the demands of consumers and thankfully our smaller retailers are back in business”, stated Mayor Bob Byrnes. “Strong regional presence is indicative of these numbers as we continue to bring in consumers from the surrounding area”.
The City of Marshall hopes that business can be further supported with business assistance grants. Marshall Economic Development Authority announced Wednesday that $500,000 of the City of Marshall’s CARES Act funding will be used for business relief grants. The Marshall CARES Grant Program will provide grants up to $5,000 to eligible small businesses located in Marshall with 15 or less employees, prior to the pandemic. The grants can be used for business interruption expenses including but not limited to payroll, rent, and utilities.
“Small businesses are the backbone of our local economy. Unfortunately, many are suffering financially, especially our small retail stores and restaurants,” EDA Director Lauren Deutz said in a statement. “These grants will provide some financial relief and ease the burden as they follow COVID-related health guidelines and capacity restrictions that keep the community safe.”
Food, Beverage and Lodging tax has seen decline of nearly 40% and thus the need for consumer support is great. Mayor Byrnes added a push for local support, “We have seen great support early on for restaurants and local shopping. Due to continued restrictions with dining and shopping, people should continue making every attempt in buying local.”
When dollars are spent locally, they can in turn be re-spent locally, raising the overall level of economic activity, paying more salaries, and building the local tax base. Studies indicate independent retailers, restaurants and bars return more than three times as much money per dollar of sales than chain or on-line competitors.