By Bianne Zorn, Mayor, City of Martinez
The holiday season has begun! We all inherently know that we should shop locally and support our local businesses, but there are some very real implications to your local economy when you purchase a product from a local Martinez business.
On June 21, 2018, the U.S. Supreme Court decided South Dakota v. Wayfair, Inc (Also known as the “Wayfair Decision”) which supported South Dakota imposing sales tax requirements on online retailers that meet a given threshold of sales. In this landmark decision, the Court overturned the requirement of a “physical presence” for a sales tax nexus.
In the state of California, we implemented the Wayfair decision by passing AB 147, which requires retailers to collect sales tax if they meet the economic threshold of cumulatively selling greater than $500,000 worth of items for delivery to California, and defines a “marketplace facilitator” who is the retailer responsible for the collection of taxes. The facilitator processes payments, collects receipts, and may possess the seller’s inventory (such as in warehouses). This law took effect October 1, 2019, and loaded in new taxpayers into our economy (Amazon being the biggest).
Sales tax revenue from out of state shipment of goods is distributed by the State through state and countywide “pools” in proportion to the rest of taxable sales within the county. Approximately 20% of our $29 million general fund budget comes from sales and use taxes; 80% of sales tax revenues come from our Martinez businesses while 20% comes from our share of the County pool.
Shopping local, rather than online, ensures that your tax dollars stay in your community this holiday season. Shop Local!
Looking for ways to support your local businesses?
Friday, November 22: #SHOPSMALLFIRST. Downtown Martinez & Co is joining The Boutique Hub and many other small businesses countrywide this holiday season in Pink Friday! On Pink Friday, we are shifting the holiday shopping narrative away from big corporations and towards our beloved local gems. Candy Cane Lane on Main Street with dancers, music, and a holiday market reaches the pinnacle with the annual Christmas Tree lighting in Main Street Plaza. This event will kick off Toys for Tots in collaboration with and sponsored by Nuvision Credit Union. Everyone is invited. For more details go to: https://downtownmartinez.org/pink-friday
Saturday, November 30: Small Business Saturday. Celebrate the Thanksgiving Holiday then come on down y’all and Shop Small for Small Businesses Saturday. Small businesses will offer specials, discounts, giveaways and more. Visit your favorite Downtown Martinez businesses and Downtown Martinez social media to see happenings for the day. Come to the Santa House opening on this day for some s’elfies with Santa Claus from Noon-3pm.
