Laserfiche WebLink
<br /> Local Option Sales Tax Analysis for Elk River, MN 12 <br />Food and Groceries <br />7.1 percent of total taxable retail and <br />service sales <br />The 17 stores in this merchandise group <br />include grocery stores, delis, bakeries, and <br />butcher shops that sell food to be prepared at <br />home. Liquor stores are also included in this <br />group. <br /> <br /> ($Millions) <br />Actual taxable sales $18.91 <br />- Potential sales $15.52 <br />= $ variance $3.39 <br /> = as % of potential 21.9% <br /> <br /> <br />Unadjusted Trade Area Analysis <br /> <br />Potential sales to residents $15.52 <br />Surplus (local preference and non-residents) $3.39 <br /> Total $18.91 <br />Non-resident share per group 17.9% <br /> <br /> <br />Analysis with Adjustments <br /> <br />Residents' $ share $14.18 <br />Non-residents' $ share $4.73 <br /> Total $18.91 <br />Non-resident share per group 25.0% <br /> <br />Analysis and Recommendations for Food and Groceries <br />The trade area analysis estimates a surplus of $3.4 million more than <br />expected in the food and liquor category. Clearly the 17 stores in this <br />category are drawing in some non-resident traffic. With such a large <br />portion of the city’s workforce working outside of Elk River, it is <br />reasonable to expect that those workers pick up some portion of grocery <br />and liquor near their place of work. These are convenience goods and <br />often ‘picked up’ when needed. Therefore, Extension increased the non- <br />resident share to 25% from 18%. <br /> <br />