According to the City Manager’s Quarterly Sales Tax Report for the Period Ending March 31, 2008, Business-to-Business Sales Tax Revenue jumped 51% over the prior year’s same quarter.
Business-to-Business (B2B) sales tax revenue from the 1st Quarter of 2008 was $391,355, or 26.4% of the total, compared to $259,169 (19.4%) for the 1st Quarter of 2007, and representing a 51% increase. For the 1st Quarter of 2008, the Business-to-Business category was the largest generator of sales tax revenue, exceeding both the Transportation (25.6%) and Food Products (24.3%) categories. For the 4th Quarter of 2007, B2B revenue was $263,525 or 18% of the total.
The increase reflects the new light industry businesses that have locate to Alameda, such as Peet’s Coffee and their roasting facility on Bay Farm Island. Transportation sales tax revenue in the city of Alameda is set to take a hit with the impending loss of the car dealerships on auto row. Yet, despite the positive trend in business-to-business sales tax revenues, City Council seems set on building housing at Alameda Point rather than looking to re-use the existing buildings there to bring more light industry and build up B2B sales tax revenue.