Scuttlebiz: Pandemic boosting Columbia County sales taxes

Jun. 20--If COVID-19 is supposed to be a commerce killer, somebody forgot to tell Columbia County.

Its sales tax collections paradoxically jumped nearly 5% in April -- the height of the pandemic's shelter-in-place protocols -- compared to a 10% decline statewide.

With nearly three fourths of Columbia County's labor market employed in other places, the new work-from-home trend has been a boon to county merchants.

More than $3.88 million in sales taxes were collected in April compared to $3.69 million during the same month in 2019.

Meanwhile, Richmond County saw April collections plummet 36.5% because of the steep dip in daytime workers (primarily from Columbia County) and the postponement of the Masters Tournament. Richmond County's sales tax revenues fell to $2.73 million, compared to collections of $4.31 million during April 2019.

Columbia County Administrator Scott Johnson said he believes the shelter-in-place protocol turned county residents into homebodies, enabling the county to capture money that residents would have otherwise spent elsewhere.

"People were having to stay closer to home and they were doing most of their shopping at home," Johnson said, noting that home-improvement shopping during the month was double that of April 2019.

Federal stimulus checks also fueled the purchase of big-ticket items, he said.

"All those tax checks went out and people spent them," he said. "There were a lot of people buying new TVs and things like that."

The county's sales tax collections also increased in March, the latter half of which was disrupted by the COVID-19 pandemic. Collections during that month increased 4.5%, from $3.69 million to $3.86 million.

Sales tax collections have been gradually increasing as commercial developments follow the county's growing number of rooftops, reducing the out-of-county spending that government officials call "leakage."

"We've been seeing an increase in Columbia County for quite some time," Johnson said.

SPEAKING OF SPENDING: While local sales tax figures show where consumers are spending money, a recent study by the folks over at LendingTree's MagnifyMoney website show how we are spending money in the COVID-19 era.

All in all, the team's analysis of Bureau of Labor Statistics shows the typical household is spending $898 -- or 17% -- less each month, with apparel being the No. 1 item people are cutting from their budgets.

Before the pandemic, the survey said households spent $155 monthly on clothing -- a number that has fallen 89% to $17. (No need to keep up with the latest fashions if you don't leave your home, I suppose.)

MagnifyMoney projects transportation costs -- primarily gasoline, new vehicles and airfare -- to fall by $198 a month.

Some household expenses, however, will significantly increase, including a 13% bump in grocery spending.

C'MON DOWN: Officials in downtown Augusta are taking to the airwaves to remind area residents the central business district is "open for business"

A partnership between the Augusta Downtown Development Authority and the Augusta Convention & Visitors Bureau has created 30-second and 60-second TV commercials that will air on local stations starting next week.

The ads will feature familiar faces in the downtown business community, including the Soul Bar's Coco Rubio, Southern Salad's Brad Usry, Lane Keen of Keen Signs and David Long of 2nd City Distilling Co.

You'll also see footage of Tire City Potters' Shishir Chokshi, The Book Tavern's David Hutchinson, Cassandra Brinson of Cafe 209 and Kimberly Beasley of Curvitude Boutique.

PRICE CONTROLS: You may have forgotten Gov. Brian Kemp's state of emergency for Georgia remains in effect through July 12.

You may also have forgotten the "Public Health State of Emergency," activates Georgia's price gouging statues, which keep businesses from unjustifiably charging more for products than they did before the pandemic.

Price increases must "accurately reflect an increase in the cost of new stock or the cost to transport it."

Unlike hurricanes -- where gasoline, lodging and home repairs spike in cost -- the biggest gouging complaints to Georgia's Consumer Protection Division have been face masks, food, hand sanitizer and toilet paper.

"Our office will not tolerate attempts to use this public health crisis to exploit consumers," said Attorney General Christopher Carr. "We are working around-the-clock to review and look into price gouging complaints, and we will hold violators accountable for any unlawful practices."

Violators of price gouging statutes may be fined up to $5,000 per violation. Consumers can report suspected price gouging by calling 800-869-1123 or completing the online complaint form on CPD'S website, consumer.ga.gov.

DATA ON DADS: Womply, a financial data firm, said Father's Day is one of the top 10 spending weeks of the year in Georgia.

Its report shows the holiday is the No. 1 week for golf courses, with spending 134% higher than the average day. For restaurants, it is the third busiest week, with spending 31% above average.

Grocery store spending during Father's Day week is 40% higher compared to the typical week. (I'm guessing households are splurging on steak.)

TAKE IT TO THE CURB: Speaking of groceries, the no-frills ALDI chain recently announced it will roll out curbside grocery pickup service at Augusta-Aiken area stores by the end of July.

"Our Curbside Grocery Pickup pilot was quickly embraced by our customers and demand for this service has continued to increase," ALDI's U.S. CEO Jason Hart said.

Interested in trying it out? Go to shop.ALDI.us and fill your online cart. Select a pickup time and location at checkout and an ALDI employee will load groceries into your car.

MEMBERSHIP HAS ITS PRIVILEGES: Warehouse retailer Sam's Club also is rolling out curbside pick for a "contact-free" shopping experience.

The division of Walmart said the service will be free for Plus-level members and is expected to be available in all clubs, including Augusta, by the end of this month.

Plus-level membership benefits also include early shopping hours, free shipping on most online items and 2% cash back on qualifying in-club and pickup purchases.

WAREHOUSE OF A DIFFERENT KIND: Bridgestone Americas Inc. this past week snipped the ribbon on its new $34 million warehouse in Aiken, which adds 272,000 square feet to its passenger/light truck tire plant.

The project, which creates 20 new jobs, will increase the company's ability to supply tires to its North American dealership network.

"With its location and increased capability to house tires onsite, the warehouse will improve our ability to get the right tires to the right place at the right time," said Scott Damon, Bridgestone America's group president of operations.

Bridgestone also operates an off-road tire plant in Aiken County, which produces large and ultra-large radial tires.

ONLINE FOOD STAMPS: The Georgia Division of Children and Family Services recently approved Walmart and Amazon as the sole providers for online grocery ordering through the Supplemental Nutrition Assistance Program, better known as SNAP or "food stamps."

Georgia joins 35 other states in allowing SNAP recipients to purchase food online.

FACE LIFT: Supermarket chain Publix is soliciting bids to remodel of its 55,700-square foot store in Aiken, S.C.'s Eastgate Shopping Center. Expect to see a fresh look by the end of the year.

A CLOSER LOOK: While we're talking about the South Carolina side of the market, it's worth noting that Westinghouse's 50-year-old nuclear fuel plant south of Columbia is undergoing an extensive environmental study by federal regulators. The plant, one of only three sources for nuclear power plant fuel, is a crucial supplier to Plant Vogtle.

Westinghouse is seeking a new 40-year operating license for the plant; its existing one expires in 2027, which could very well be around the time Vogtle's new units 3 and 4 go online. Read on.

WORK IN PROGRESS: Engineers for the new Vogtle units recently testified state regulators that the Georgia Power-led project is "highly unlikely" to meet construction deadlines and will face more budget overruns.

The plant near Waynesboro won't complete its two reactors by the November 2021 and November 2022 deadlines approved by the Georgia Public Service Commission. And the project's cost likely will exceed its the current $17.1 billion target.

The monitor's analysis, by the way, was completed in mid-March -- before the COVID-19 virus caused dozens of employees to fall ill. Things may get worse before they get better.

PAY THE PIPER: Don't forget "Tax Day" has been moved to July 15 this year to accommodate filers disrupted by the COVID-19 pandemic.

The personal finance website SmartAsset recently released a study analyzing tax refunds in Georgia. One area county -- Warren County -- made the top 10 for list of counties with the highest average refund.

The study divided the total amount of money refunded by the IRS by the number of refunds given out to residents in each county.

Warren County, which ranked No. 6 in the state, had 1,830 taxpayers receiving an average refund of $3,377. Only 340 residents ended up owing, with an average tax bill of $2,762.

Fulton County tops the refund list, with 335,030 taxpayers receiving an average of $3,754. It also had the most taxpayers who owe, with 116,220 taxpayers owing an average amount of $9,844.

No matter how you slice it, that's a lot of money.

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