Retail distribution centers located in southwest Fresno are driving record sales tax revenue for the city.
Those centers are expected to continue to be a financial boon for the city as Black Friday and Cyber Monday shopping drives sales.
Driving the news: Fresno’s local distribution centers, such as Amazon and Ulta, are contributing to Fresno’s 42 percent increase in sales tax revenue over the last five years.
- Last year the city had a record $148.7 million in sales tax revenue.
- The South Central Business District, where distribution centers are located, contributes over 21 percent of the city’s sales tax revenue despite only taking up 7.5 percent of the city’s land.
- The district also employs over 22,000 people and pays an average annual wage of $68,000.
- Every sale from companies like Amazon and Ulta that runs through a Fresno distribution center – including the increased shopping of Black Friday and Cyber Monday – contributes to the city’s sales tax revenue.
What they’re saying: “As Black Friday and Cyber Monday usher in a wave of enthusiastic shoppers, our city anticipates substantial gains for the budget thanks to the South Central Business District and its retail distribution centers,” said Lance Lippincott, Economic Development Director for the City of Fresno. “Regardless of where in California an online purchase is made, if it comes through one of our local distribution centers, Fresno receives the sales tax.”
- Ethan Smith, the Chair of INVEST Fresno, said the surge in sales tax revenue will transform the city.
- “The revenue allows us to focus on critical areas, such as affordable housing, upgrading public infrastructure, and unwavering support for our local small businesses, fostering a more vibrant and inclusive community for everyone,” Smith said.