Sales tax revenue took a plunge across the North Olympic Peninsula in 2008 — except in Forks and Port Townsend.
When compared to 2007, sales tax revenue collected by the state last year dropped by nearly 13.53 percent in unincorporated Clallam County — from $341.590 million to $295.356 million — and by 2.64 percent in unincorporated Jefferson County — from $195.618 million to $190.455 million, the state Department of Revenue said.
Sales tax revenue fell by nearly 10 percent in Port Angeles — from $374.263 million to $337.822 million — and by 12.47 percent in Sequim — from $307.558 million to $269.197 million.
Yet Forks, fueled by Twilight tourism, saw an increase of 3.68 percent, from $40.062 million to $41.538 million.
And Port Townsend’s sales tax revenue grew by 1.55 percent, from $182.831 million to $185.670.
Those figures include all sales tax collected by the state, such as from contractors, hotels, restaurants, manufacturers, wholesalers and retailers. Local cities and counties receive a small portion of this revenue.
Forks, PT
Forks Chamber of Commerce Director Marcia Bingham said there are three reasons why Forks didn’t see a decrease: “Twilight, Twilight, Twilight.”
“Truly that is what I would attribute that to,” she added. “It’s unbelievable.”
Stephenie Meyer’s best-selling four-novel seriesabout a Forks teen who falls in love with a vampire, has focused worldwide attention on the small town.
The books — Twilight, New Moon, Eclipse and Breaking Dawn — and the “Twilight” movie released in 2008 are popular with both teens and their mothers and have swept a flood of tourists into Forks.
The trend continues this year.
Bingham said sales tax revenue for 2009 is roughly 7 percent higher through March of this year when compared to the same time period in 2008.
Jennifer MacGillonie, Port Townsend Chamber of Commerce interim executive director, said Port Townsend is also up slightly with sales tax revenue for the first quarter of the year.
“It’s definitely reassuring,” she said.
“It’s a nice surprise that sales tax is up a little bit.”
MacGillonie said it’s too early to tell how the six-week closure of the Hood Canal Bridge to permit replacement of its eastern half will affect those numbers.
As for the reason Port Townsend had a small increase in sales tax revenue in 2008 over 2007, MacGillonie said it could “really be anything.”
“We’re looking at it as people are still coming here and shopping at levels they did before,” she said.
Staying low elsewhere
For unincorporated Jefferson County, sales tax revenue is about 6.5 percent lower through April of this year when compared to the same months in 2008 — from $747,059 to $698,229, according to Team Jefferson, an economic development organization.
Contributing to lower sales tax revenue could include the closure of the Courtesy Ford dealership and fewer building permits which affects local lumber companies, said Katherine Baril, Team Jefferson coordinator.
Port Angeles Finance Director Yvonne Ziomkowski said that the city budgeted for a 10 percent drop this year in sales tax revenue. The actual drop in sales tax revenue for the first quarter of the year ranges between 15 and 18 percent, she said.
At this rate, Ziomkowski said the city could end up with $100,000 less in sales tax revenue than it budgeted for this year.
Ziomkowski said the city would have to draw on other revenue sources or reserves to make up that amount.
Clallam County Administrator Jim Jones said Clallam County’s share of sales tax revenue is down 12.69 percent through April when compared to the same months last year — from $1.388 million to $1.212 million — adding that the county budgeted for a 15 percent drop.
Jones said a contributing factor is the decline in the housing market, and the sales tax revenue off of “housing packages” that goes with it.
Also, he said, consumers aren’t buying as many “big ticket” items such as TVs, cars and washing machines.
“I actually do believe it’s going to get better in the rest of this year,” Jones said.
“I’m still very optimistic that unless something really, really bad happens, we will be on budget. And I hope to beat the 12 percent.”
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
