The Cost of Not Shopping Local | Jackson Free Press | Jackson, MS

The Cost of Not Shopping Local

Jacksonians were bummed to discover last week that the city plans to raise water fees by 13 percent and sewer fees by 6 percent to shore up the city's budget after a drop in sales-tax revenue.

This means that we are paying the price for shopping outside Jackson and sending our sales tax out of town.

No doubt, a bad economy has meant less spending. But that isn't the whole issue: We've watched businesses flip from one side of the County Line Road to the other in recent years, taking a chunk of the capital city's cut of the sales tax with them. And every time a Jackson resident leaves the city to shop, we are setting up a scenario that can lead to drastic increases in water fees and the like.

In Jackson, we pay a 7 percent state sales tax, in addition to two percentage points that are divided between the Jackson Convention Center and the Convention and Visitors' Bureau. Of the 7 percent on most purchases, the state then pays the city of Jackson 18.5 percent a year, which makes up a large portion of the city's budget. As businesses, and customers, leave the city, that share falls.

In other words, where you shop really matters. If you care about Jackson, spend more in the city. This applies even if you're choosing to shop at a large chain retailer: When you shop at Target in Jackson instead of in Flowood, more of your tax dollars come back to Jackson. We're not saying to never shop outside Jackson, but if every one of the 64,337 JFP readers spends 25 percent more inside the city limits, it would make a difference.

Of course, the real strength of our city's economy comes from locally owned businesses inside the city limits. Studies show that for every $100 spent at a truly locally owned business (be sure to ask where their home office really is, by the way), only $27 leaves the local economy, mostly for supplies not available locally. For a non-local business or chain store, $57 of every $100 leaves the city.

This also means that if you are going to spend outside the city limits, please choose a locally owned business as close as possible to help the greater Jackson area. (We print BOOM Jackson with Hederman Bros. in Ridgeland, for instance.) The worst scenario for the city is spending money with national chains outside the city limits.

Want to join others in the Spend Local First movement? Come out Friday, Nov. 19, to Koinonia Coffee House at 9 a.m. to hear Jeff Milchen, co-founder of the American Independent Business Alliance, brought here by the JFP-BOOM. The "local" ideas are sure to flow.

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