When dollar store chains move into town, they can have a disastrous effect on local tax revenue.
Take, for example, the story of Haven, KS, which lost more than $50,000 in annual revenue after a Dollar General pushed out the town’s only grocery store. 🧵1/
#DolllarStoreProblems
Take, for example, the story of Haven, KS, which lost more than $50,000 in annual revenue after a Dollar General pushed out the town’s only grocery store. 🧵1/
#DolllarStoreProblems
At first, the opening of a Dollar General seemed like good news for the town of Haven.
The year after the store opened there, sales tax revenue grew by $60,000. 2/
The year after the store opened there, sales tax revenue grew by $60,000. 2/
But then the town’s only grocery store started losing an average of $1,000 per day, the equivalent of 35-40% of its total sales.
The store closed permanently 3 years later—and with it, the town lost the $75,000 in property taxes the grocery store had been paying annually. 3/
The store closed permanently 3 years later—and with it, the town lost the $75,000 in property taxes the grocery store had been paying annually. 3/
That would have meant a net loss of $15k/year in property tax revenue.
But, adding insult to injury, Dollar General had already gotten the town to agree to cut its utility bills by ~$36k—so, when the grocery store closed, the town lost over $50k a year in revenue in total. 4/
But, adding insult to injury, Dollar General had already gotten the town to agree to cut its utility bills by ~$36k—so, when the grocery store closed, the town lost over $50k a year in revenue in total. 4/
Dollar store aren’t only a problem for commercial property tax revenues.
They also bring down nearby property values, which in turn bring down tax revenue. 5/
They also bring down nearby property values, which in turn bring down tax revenue. 5/
A 2022 study by @ClemsonUniv found that the presence of a nearby dollar store diminished property values by 16-21%, while the presence of a nearby grocery store increased property values by 14-15%. 6/
Chain dollar stores also increase municipal expenses, such as the costs of increased police, fire, sewer, and other municipal services to these traffic-intensive, crime-vulnerable stores. 7/
Incredibly, many communities have given multi-million-dollar subsidies to dollar store chains to locate there.
Between 2000-2021, Dollar Tree/Family Dollar received 252 subsidies, totaling $109.3 million.
In that same period, Dollar General received $36.5M. 8/
Between 2000-2021, Dollar Tree/Family Dollar received 252 subsidies, totaling $109.3 million.
In that same period, Dollar General received $36.5M. 8/
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