EAST COUNTY CITIES VIE TO LURE SHOPPERS

By Miriam Raftery

April 1, 2009 (San Diego’s East County) – A sales tax hike that takes effect today in La Mesa and El Cajon, has sparked competition among East County cities and Chambers of Commerce vying for shoppers’ business. A statewide sales tax increase boosts sales tax county-wide to 8.75%. In El Cajon and La Mesa, voters approved additional tax increases to 9.75% and 9.5% respectively. But does shopping outside your own community make economic sense, if it means taking tax revenues away from your home town?

The City of Santee and Santee Chamber of Commerce launched the first volley, holding a press conference this morning to unveil a “Shop Santee and Save” campaign including a logo for Santee merchants to display in store windows and discounts posted at the Chamber website. The campaign touts Santee as a more affordable place to shop than neighboring communities, with the lowest sales tax of any incorporated city in East County. But neighbors are restless-and one neighboring town is fighting back with its own PR campaign.

“During this environment of tough economic times, rising unemployment and a lack of consumer confidence, citizens must make tough personal and business decisions every day,” said Mary England, president of the La Mesa Chamber of Commerce. “So when considering traveling to a nearby city to shop because of a .75% lower sales tax, one needs only to look at the real cost of buying outside their own community.” Sales tax does not apply to groceries, she said, noting that the difference in sales tax on general items is negligible, typically only a dollar or two on a weekly grocery bill. Such a small different is “hardly worth the gas and additional time driving to and from an outside location,” she said.

England observed that “shopping in La Mesa provides an additional opportunity for a resident of La Mesa to have a direct impact on the welfare of the local economy. These are difficult times for our local merchants and businesses.” She added, “The voters saw the value of maintaining the services provided by the City of La Mesa and overwhelmingly supported the La Mesa sales tax increase at the ballot box. The City of La Mesa boasts a new library, a new award-winning fire station, a brand new post office and the construction has begun on a brand new police station. The City services provide a quality of life second to non so I urge you—the local La Mesa consumers, to continue doing what you have been doing for so many years—shop in La Mesa and make sure that your local business community continues to proper in these economic items and your sales taxes support the services provided by your city. There is an overwhelming `pride of place’ within the City of La Mesa and your continued support of your local business men and women will ensure that the pride continues."