Why Buy Local?

The Anderson County Chamber of Commerce Business Development Committee is an avid supporter of \”Buy Local – Stay Local\”, healing a program designed to encourage residents of Anderson County to buy their goods and services in Anderson County for a good reason.\n\nFor every $100 spent in Anderson County, for sale consumers pay 9.75% sales tax on goods purchased. Therefore, the sales tax on $100 is $9.75. The State of Tennessee retains $7.00 or 7%, with $2.75 (2.75%) minus fees that returns to local governments. From the $2.75 (2. 75%) the State retains 1.125% for administrative costs and prior to distribution by the Anderson County Trustee’s office, a 1 % fee is assessed, leaving $2.69 to be distributed as follows: one-half to the three school systems and the remainder returned to the municipality or county government from which it was received.\n\nConsider the amount you spend in a month and how much of that expenditure you spend in another county, thereby contributing to their revenues. If you purchase $100 worth of goods in another county, your \”$2.69\” is retained by that county.\n\nAnderson County has 31,652 households with the average household income of $58,855.00. A typical family spends 15% of their annual income on groceries, which equates to approximately $8,850 a year, or $280 million a year on groceries that will generate $7 .5 million in local option sales tax. Did you know that in Anderson County, the local option sales tax received in 2015, the 2.75% minus fees, equates to $25 million in total revenues for Anderson County Government, the five municipalities and all three school systems?\n\nHowever, leakage to surrounding counties remains staggering. When you consider large purchases such as cars, appliances, building supplies, etc., ask yourself, \”Can this product be purchased in Anderson County?\” It could be more myth than truth that you will receive a lower price by going to a retailer in another county. Did you know that most retailers offer price matching? Do your homework. Provide the sales person an advertisement from local media or from the internet and you may receive the same price here in your county. Often apparent savings are more than offset by the additional costs of gasoline and wear and tear on your vehicle to travel to Knoxville or other counties.\n\nThere are over 2,600 businesses in Anderson County that contribute to the economic health of our County by payment of property tax (40% of the County’s overall budget), business tax (about $1.2 million annually), sales tax when supplies are purchased from other businesses and payroll tax. Their employees receive a salary and have the option to spend their money in Anderson County.\nIf goods and services are purchased in another county, their employees are likely to live in that county and spend their money in that county.\n\nRevenues needed to operate Anderson County Government and the municipalities of Clinton, Norris, Oak Ridge, Oliver Springs and Rocky Top are derived from property tax, sales tax, business tax, gas tax, in lieu of tax payments, transfer taxes and mortgage taxes paid to the Register of Deeds, vehicle registration fees paid to the County Clerk, building permits, court costs, traffic tickets and other taxes from federal and state sources. Services provided to citizens from these government entities include police and fire protection, schools, ambulance services, garbage collection, libraries, roads, parks, etc.\n\nAnderson County Government collects 41.5% of the property tax from commercial properties while 58.5% is collected from residential properties. One Big Box Retailer in Anderson County annually pays $83,240 for one location and $119,623 for the second location in property tax.\n\nAll local revenues including Sales Tax and Property Tax provide funding for the three school systems as follows based on \”weighted average attendance\”: 0.576% to Anderson County Schools, 0.348% to Oak Ridge Schools and 0.076% to Clinton City Schools.\n\nThe \”Buying Local Program\”, if successful, may contribute to lower taxes and provide an atmosphere for local retailers to not only stay in business in Anderson County but also to grow in Anderson County.\n\nNeed another reason to Buy Local? Research has proven that for every $100 spent at a local business, $68 remains in the county by way of local supply purchases and business services, local taxes, wages and community donations. Local businesses have a tendency to support the local community, patronize local establishments for both business and personal reasons as well as support community organizations. How many times have you seen the signs of a local business on the local ball field fence or a business name on the back of a youth’s team jersey?\n\nFinally, let me say a word about internet sales. Online out-of-state companies DO NOT support the local economy by job creation, property and business tax revenue or support our community organizations or schools. When we spend our money in Anderson County, it stays in Anderson County!!\n\nBUY LOCAL – it’s more than a concept – it’s a way of life! Support the businesses that reinvest in our county’s economic vitality, while maintaining the unique character and quality of life in Anderson County! Shop Anderson County first to support local business and keep tax dollars working in our community!\n\nJanet Hawkins, Executive Vice President\nRetail Development\nAnderson County Chamber of Commerce\n245 N. Main St., Ste. 200, Clinton, TN 37716\nPH: 865-457-2559

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