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Races Raise Revenue
Dave Druker | 10th Street

 

Beginning in 2014, the racetrack will have a horse meet during the month of November through early December. The expected attendance during the meet will not match the daily attendance of the summer meet, but this new season should have a positive impact on the finances of Del Mar.

Sales Tax receipts during the 3rd Quarter are higher than any other quarter. This differential is tied to the horse races and visitors to the beach. Sales tax receipts during the 4th quarter are about $300,000 less than the 3rd. Of this $300,000 approximately 1/3 or $100,000 is from the Fairgrounds.

Hotel Transit Occupancy Tax (TOT) receipts are also highest during the summer months, peaking in July and August. This peak is also tied to the horse races and visitors to the beach. Approximately $280,000 of TOT is collected in the July/August timeframe compared to $240,000 in the November/December timeframe.

Del Mar will not have the same Sales Tax and TOT receipts during this new fall race season as the summer race season, but there should be an increase. As usual, much of the increase will be from the Fairgrounds and the restaurants in town. So if Del Mar were to see an increase equivalent to 50% of the differential, Del Mar would receive about $150,000 more of sales tax and $140,000 of TOT amounting to a total of about $290,000 more revenue per year. Even if Del Mar were to see an increase equivalent to 1/3, Del Mar would receive about $100,000 more of Sales tax and $93,000 of TOT a total of about $193,000 more revenue per year.

These increases would be almost equivalent to raising the Sales Tax rate by 0.25%.

 

 

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