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# Price is right in SM with sales tax growth
- URL: https://www.smdp.com/price-is-right-in-sm-with-sales-tax-growth/
- Published: 2005-12-08T16:00:00.000Z
- Updated: 2026-10-23T08:16:30.000Z
- Author: Ryan Hyatt
- Tags: Business, Santa Monica, #archive-import

*Source: City of Santa Monica Apparel, electronics a boon to retail sales*

CITYWIDE — According to the numbers, things are looking up in Santa Monica.

City Hall’s finance department’s analysis of second quarter sales tax from 2005 shows an adjusted increase of 4.2 percent over the same quarter from 2004\. Most major business groups in Santa Monica showed small to moderate increases when compared to the same period last year.

“Overall, sales tax revenues are growing at a moderate rate as the local economy continues its slow steady recovery mirroring the national and state economies,” said Steve Stark, City Hall’s director of finance. “There are continuing concerns regarding the national, state and local economies, including higher energy prices, the threat of higher inflation and higher interest rates, which could have impacts on the local economy and taxable sales in the future.

“We will continue to monitor the sales tax receipts throughout the fiscal year.”

General Consumer Retail — the city’s largest tax-generating business group — was essentially even with last year’s totals. Sales tax revenue increases from apparel stores and electronic/appliance stores — such as the new Apple computer store on the Third Street Promenade — were offset by decreases from specialty stores, primarily due to a one-time adjustment the prior year.

Other sales tax revenue increases include: Restaurants and hotels by 3.9 percent; business and industry groups by 18.3 percent, primarily due to one-time adjustments; food and drugs by 7 percent; and construction by 4.8 percent.

Autos and transportation — the city’s second largest tax-generating group — decreased by 12.8 percent due to a late distribution related to auto dealers. Actual receipts were effected by state delays in distributing payments from certain auto dealers. The impact of this is estimated to be approximately $240,000\. Taking into account the late payment, the group was essentially flat with the same quarter last year.

Results from different geographic areas were mixed when compared to the same period last year. The Third Street Promenade experienced a 12.8 increase in sales tax revenue, primarily due to increases from apparel stores and specialty stores. The Ocean Avenue/hotel area increased by 19.3 percent, primarily due to higher restaurant sales.

Other areas showing increases were Colorado Avenue, at 10.6 percent, primarily due to a one-time payment related to prior activity; Broadway, 6.6 percent; Santa Monica Place, 2.7 percent; and the Airport area at 2.9 percent.

Santa Monica Boulevard was down 15.6 percent, but flat after adjusting for the delayed distribution by the state.

The next largest revenue-producing area — Wilshire Boulevard — was down 4.7 percent. Ocean Park decreased 49 percent due to a one-time payment in the prior year.

The Bayside District was down 7.3 percent, primarily due to business closures.

Other areas showing a decrease were Pico Blvd., Olympic Boulevard, Main Street, Lincoln Boulevard and Montana Avenue.

*Originally published in the Santa Monica Daily Press print edition on December 8, 2005.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/120805.pdf?ref=smdp.com)