Sales Tax Data Shows Business is Up on Main Street

Despite a new parking system that some Main Street merchants have said is hurting business, business is up on Ellicott City's Main street, according to state sales tax data

Sales tax collections have grown 11.9 percent in the months of February to May 2013, compared to the same months in 2012 at 36 businesses located on Main Street, according to a public records request provided by the Maryland Comptroller of the Treasury.

Over that same period, the statewide sales tax revenue increased 0.93 percent, according to the comptroller's website.

The comptroller's office first looked at 71 businesses on Main Street, but had to narrow the list down to 36 for "a comparable year-over-year analysis", according to the records request. The list had to be narrowed because some businesses file quarterly payments, are new, or don't have any taxable sales, according to the comptroller's office.

Using the 36 businesses, the comptroller's office was also able to determine the sales tax collections for the businesses with the largest sales volume (the top 25 percent) are up 4.5 percent. The smaller businesses, the other 75 percent, are bringing the overall sales tax gain up to 11.9 percent, according to the comptroller's office.

Basically that means the smaller businesses are seeing their sales grow faster than the bigger Main Street businesses, according to the records request.

Since the new parking system was installed on Ellicott City's Main Street in February the primary complaints around the meters have been that they're confusing, that the two hour limit is too short, and for some business owners, that the meters are hurting business.

However, other business owners, such as Tammy Bideman of Sweet Elizabeth Jane and Sue Whary of Sweet Cascades, said the new parking system opened up spots and hasn't been a problem.

While the increase in sales can't be directly attributed to the new parking system, they do show the change hasn't negatively impacted many of the businesses, according to the county.

"The numbers speak for themselves," said David Nitkin, Howard County's director of communication, in an email. "Howard County Executive Ken Ulman is committed to growing the economy and businesses in Ellicott City and throughout the county, and improved parking management can only help toward that goal.”

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