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Staff Photo by Tim Barber/Chattanooga Times Free Press The Costco Wholesale store opened in 2010 at exit 350 on Interstate 75 in Georgia.
Catoosa County leaders were disappointed and disbelieving that sales tax revenues for November -- Costco's first full month in the county -- were lower than last year's.
"I don't believe that. I just don't believe that," said Commissioner Ken Marks when informed of the revenue figures Monday. "I can't believe that."
November 2010 sales tax figures were down $34,000 from $539,267,061 in 2009 to $504,969,072 in 2010, according to county Finance Officer Carl Henson.
Henson, Marks and other officials had anticipated an increase in sales tax with the opening of a Costco Warehouse Club on Cloud Springs Road in October.
A Costco club typically does between $115 million and $135 million annually in sales, leading to hopes that the store could boost county tax incomes by as much as $3 million annually.
"We were hoping for the recovery of the economy and, with Costco coming on, we were expecting a big number," said Commissioner Jim Cutler.
"Looking at that month, it was very discouraging to see it was down from last year," Henson said.
Bob Palermo, general manager at Costco, said sales have been very strong. On a big picture, he said, the store is likely to take some money away from other local stores, but many of Costco's customers are driving down from Hamilton County or coming north from Whitfield County, Ga.
"The influx of money is definitely coming from there," he said.
Henson said Catoosa sales tax numbers have fluctuated over the past few years, with large swings from month to month, leaving county financial managers questioning whether or not the state is using the entire month every time.
In Georgia, sales taxes are collected by the retailers and sent to the state. From there, the tax money is sent back to the counties.
"The revenue seems to bounce around a lot and you never can be sure that you have a clean cutoff [point]," Henson said.
Attempts to reach to reach officials with the Georgia Department of Revenue were unsuccessful Monday -- a state holiday -- and messages were not returned.
Marks also questioned the state's reporting and remained incredulous.
"I don't have an explanation," he said. "Maybe we need to wait another month."
If the numbers are accurate, Cutler and Commissioner Dewayne Hill said the revenues would have been even worse without the Costco.
"In Catoosa County it hasn't been as bad as it has in some places, but we're never happy to see the sales tax down," Hill said.
Contact staff writer Andy Johns at ajohns@timesfree press.com or call 423-757-6324.
Andy began working at the Times Free Press in July 2008 as a general assignment reporter before focusing on Northwest Georgia and Georgia politics in May of 2009. Before coming to the Times Free Press, Andy worked for the Anniston Star, the Rome News Tribune and the Campus Carrier at Berry College, where he graduated with a communications degree in 2006. He is pursuing a master’s degree in business administration at the University of Tennessee ...
Hey Henson, Marks and you other dummies in position of power, are you guys really that stupid? You put all your hopes in a golden cow and forget the impact that Costco and especially the borderline depression we are in is having on the local economy? Maybe you jackwagons need to be impacted more directly by the economy instead of living off the taxpayers dollars who know what the economy is really like. You fat slobs are a shame to the working class, don't dare say you know what it's like. There isn't a one of you who has to miss a meal or is behind on bills. Come down out of your government tamples and walk among the working class with your eyes, ears amd minds open and your blinders off.
To give these corporations the financial gifts in millions of dollars was not very smart. Costco was going nowhere but in Catoosa County and the GREAT LEADERS we have, past & present were played. Secret "CODE NAMES"???? Now thats funny. You can all stop high fiving each other any time now. The wine sale laws in Tn. was something Costco could and would not live with. Being a county on a state line with interstate highway access gives you advantages when a company is considering a site. This was a "biggie" for Costco. It gave them something Sam's didn't have and they {Sam's} were not going to come to Catoosa in the near future. For anyone to say the majority of shoppers are made up of people from Tn. or outside Catoosa County is suspect. Being a Catoosa resident I had every intention of becoming a Costco customer until Sam's gave me 2 years free membership and an upgrade to E value. Costco membership price is also an issue plus they don't allow you to preview the store. Sign up or don't come. So I decided to stay at Sam's. I believe the sales tax drop is a direct result of the economy. People are broke. Costco just takes customers from local grocery and retail stores and that is never good. Just like Kroger coming to town. Catoosa County needs another grocery store on Battelfield Pkwy like it needs another City Government and an added group of visionaries to lead them!!! Genius boys, Just GENIUS!!!
I would expect Catoosa commisssioners to be more/better informed about sales tax reports. Many small business only file a quarterly report and November IS the middle month of the 4th quarter, explaining WHY sales tax revenues vary from month to month. Gentlemen, educate yourselves before you whine and try to place blame, please...
Costco will let you look around the store...but what I saw was too expensive... and not nearly worth the cost of membership. I don't know about many of the readers but Lobster is a rare occasion around here...and if it is not a necessity in this economy it just doesn't get bought. I think the Catoosa commissioners have put their eggs in the wrong basket.
Just a person,if the shoe fits, there is always friends of these idiots who can't see the forest for the trees. Must be right up there with these mental midgets in cotoosa county. I see what is really going on, you get educated dummy
Are you sure of those figures... over $537 million dollars in sales taxes for one month in little Catoosa County.
I am pleased with the addition of Costco to our business community. I believe when all is said and done Costco will repay the concessions given in a much shorter period of time than was anticipated. To the Sams patron, I was able to look around before I joined and quickly realized that on just a few regular monthly purchases I could and would recoup my membership fee in a very short time. Since I've been a member I've found additional areas that I will be saving my family substantial dollars. Having Costco allowed me to make many purchases for Christmas gifts here in Catoosa CO. instead of Hamilton CO, That combined with seeing all the tags from TN along with other states and counties in GA lets me know that this is beneficial to our county. Thanks to the folks that were instrumental in bring them to our county. As far as Kroger goes, I've never seen competition as a bad thing in our capitalistic society. Competition usually benefits the consumer, and I am a consumer.
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