A Home Depot might generate less tax revenue

I support the proposed ballot initiative requiring a vote of the citizens of Agoura Hills for the approval of any "big box" store constructed within city limits. A "big box" store would have a huge impact on our small city, and I believe that its approval should be decided by the citizens of Agoura Hills in a direct vote.

I would also like to address the false belief that a Home Depot would automatically increase the city’s sales tax revenues. A city’s sales tax revenue is generated from the retail sales within the city. Therefore, overall sales tax revenue to a city will increase only if there is an overall increase in retail sales within the city.

Unfortunately, every dollar spent at a proposed Agoura Hills Home Depot would be a dollar not spent at one of the existing Agoura Hills building-supply businesses.

As a result, there would be no increase in overall retail sales in the city and no increase in overall tax revenues to the city. In fact, because consumers shop at Home Depot for their slightly lower prices, and sales tax revenues are a percentage of the sales price, consumer purchases at a Home Depot would actually cause the sales tax revenues to the city to decrease.

Overall sales tax revenues to the city would only increase if enough new consumers who didn’t already shop at any of the existing Agoura Hills businesses started coming to the city to shop at a Home Depot.

Andy Coradeschi

Agoura Hills