Northeast Ohio Regional Retail Analysis

LOCAL GOVERNMENT REVENUES AND COSTS

The retail sector of the study area generates more than $345 million annually in property tax, income tax and sales tax revenue.
Cuyhoga County and the Greater Cleveland Regional Transit Authority could each lose $26 to $39 million dollars annually beginning in 2002 as a result of lost sales taxes due to electronic commerce.
Most of the proposed large-scale retail projects are planned in the outlying communities of Cuyahoga County or in surrounding counties. Considerable public subsidies in the form of transportation enhancements, infrastructure improvements and city services will likely be required. Funding for these public improvements is often limited and competes with other priorities.
Community tax revenue that is generated by new retail development is often offset by the local government costs of providing additional infrastructure and public safety services, the softening of the revenue from existing businesses, and the costs of environmental mitigation.