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<br /> Local Option Sales Tax Analysis for Elk River, MN 8 <br /> <br />TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY <br />Vehicles and Parts <br />7.5 percent of total taxable retail <br />and service sales <br /> <br />The 13 businesses in this retail category <br />include repair parts, snowmobiles, boats, <br />trailers, and recreational vehicles. Sales <br />of cars and other on-road vehicles are <br />not included in this category since they <br />are subject to a different tax. <br /> <br /> ($Millions) <br />Actual taxable sales $19.96 <br />-Potential sales $9.98 <br />= $ variance $9.98 <br /> = as % of potential 100.0% <br /> <br /> <br />Unadjusted Trade Area Analysis <br /> <br />Potential taxable sales to residents $9.98 <br />Surplus (local preference and non- <br />residents) <br />9.98 <br /> Total $19.96 <br />Surplus percentage 50.0% <br /> <br /> <br />Analysis with Adjustments <br /> <br />Residents' $ share $8.98 <br />Non-Residents' $ share $10.98 <br /> Total $19.96 <br />Non-resident share per group 55.0% <br /> <br />Analysis and Recommendations for Vehicles and Parts <br />The trade area analysis predicts approximately twice the amount of <br />taxable sales than expected, The city’s 13 firms in this category, however, <br />are clearly pulling in sales from outside the community. Since it is <br />unrealistic to expect all residents to get all their product needs in Elk <br />River in this category, Extension set non-resident share at a conservative <br />55 percent of taxable sales. <br />