Study Discovers Who Pays Richmond County Sales Tax
As much as half of the sales tax paid in Richmond County is paid by those who live outside the county, according to a recent study commissioned by the Augusta Metro Chamber of Commerce.
The study, done with the Vinson Institute of Government at UGA, estimates that 45-54 percent of Richmond County’s sales tax is paid by non-county residents. This is called the “pull factor.”
The pull factor estimates the net percentage of taxable retail transactions (specifically, the value of those transactions) that can be attributed to non-residents. It compared actual county sales tax revenues to the amount the county would expect to collect, based on either its percentage of the state’s population or its residents’ proportion of total state personal income.
Based on population, Augusta-Richmond County’s pull factor would be 45 percent, but based on a more complete analysis that includes purchasing power of that population, the pull factor increases to an estimated 54 percent.
“We believe it is important to understand the source of sales tax revenues and how robust the economic benefits are in the metro area as an employment, visitor and retail destination,” said Sue Parr, President of the Augusta Metro Chamber of Commerce. “This type of information is very helpful as we work to support a tax climate that is good for our business community.”