SALES TAX REVENUE TAKES A HIT ON SLEET/COLD WEATHER SHUTDOWN

Cold weather supplies were certainly in high demand starting last Monday.
 
Many of the purchases for the projected freezing rain, sleet, and subfreezing weather were made at the big box chain stores.
 
Everything from mobile generators, outside spigot covers, prepacked fireplace logs, large plastic buckets, flashlight batteries, salt/melting crystals, and mobile power units were in high demand.
 
Parking lots at Home Depot, Lowe’s, Harbor Freight, and Walmart were packed with anxious buyers trying to prepare for possible power outages. Likewise, grocery stores were full of customers.
 
The big rush for in-person purchasing, versus online buys, ended Friday.
 
On Saturday most retailers who were open had few customers. And of course, many businesses were closed Saturday through today (Tues.) Whether or not the business world will be back to “normal” tomorrow (Wed) is doubtful
 
The January sales tax reports, which will not be published until early March, will provide data on retail sales. One can expect it to be lower than January 2025, estimated by local sales tax guru Ken Kreftt to be a 4-5% decline.
 
Less spending means less sales tax revenues for municipalities, sheriffs, and school boards.  Prudent budgets for these governmental agencies can absorb a short-term decline in revenues. Less spending can be much more critical for small, locally owned businesses.
 
Delayed purchases due to the weather shutdown may boost sales tax revenues, but they won't benefit every retailer.
 
Fast food providers and restaurants and other businesses have taken losses that cannot be recouped.  Many hourly employees will lose wages due to storm shutdowns and less customer traffic. Predictions on last wages are not easy to calculate.
 
Weather shutdowns are always detrimental to the local economy. The only question is how much is the economic hit, and how much can be recovered post storm.