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Manteca hungry for dining sales tax
Sales tax feeds general fund budget

City leaders hunger for new dining options just as much as residents do but for a slightly different reason.

Spending at restaurants was the city’s second largest source of sales tax revenue in the 2017-2018 fiscal year at $1,894,562 eclipsing new auto sales tax receipts that came in third at $1,367,922, Department stores — defined as Bass Pro Shops, Target, Walmart and Kohl’s — leads the list of sales tax revenue generators at $3,226,554.

Sales tax is the biggest source of revenue for the general fund that covers the cost of day-to-day municipal operations such as police, fire, parks, street maintenance, and general government. It does not include fee-based services such as sewer, water, and solid waste. Sales tax generated $16,907,367 in the fiscal year ending June 30, 2018 as opposed to property tax that provided $15,511,281. The overall general fund budget for last fiscal year was just under $39 million.

Sales tax has outperformed property tax since deals between 2002 and 2019  brought Target, Bass Pro along with the rest of the Promenade Shops at Orchard Valley, and Costco to Manteca.

Target accelerated its plans to enter the Manteca market by five years in a deal that saw the city putting in place infrastructure in exchange for sharing in increased equity in adjoining commercial property when it was developed. The deal ended up netting Manteca over $200,000.

Bass Pro was brought to Manteca under a 35-year sales tax split for the entire Orchard Valley complex that has an annual cap.

Costco wasn’t going to build in Manteca and was looking at a second location in the Modesto area or Lathrop until Manteca cut a sales tax split that was designed to allow Costco to recover the cost of building the Manteca location. The deal was based on clawing back the amount of sales tax Manteca consumers were spending at Costco stores in Tracy and Modesto. It has also brought sales tax on Costco purchases to Manteca from those living in Lathrop, Ripon, and Escalon.

The city this year will make the last payment to Costco meaning 100 percent of the local share of the sales tax the store collects will flow into Manteca’s municipal coffers.

Spending on dining out

has been going up

$1.2M plus annually

for past seven years

Manteca’s appetite for dining out in restaurants has been growing between $1.2 million and $1.6 million annually for the past seven years.

Overall more than $189 million is spent annually by consumers in restaurants in Manteca. That represents a spending clip of $519,000 a day at the city’s 160 plus outlets that serve prepared food and beverages whether it is a sit down restaurant like Sizzlers’, Taco Bell, sidewalk barbecues, Jamba Juice, Starbucks, and such.

Overall Manteca outlets recorded $1.69 billion in taxable sales last fiscal year.


To contact Dennis Wyatt, email