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Crystal Justice

The "Shop Local" Impact

Updated: Feb 6, 2019

Does shopping local really matter that much? How does it build community?

Let's consider a current issue addressed at the last Red Boiling Springs, TN Council Meeting (Jan 2019), the poor condition of the city streets and the lack of funding to make the necessary repairs. The revenue to create, maintain, and repair city streets is primarily generated through fuel tax. Fuel tax is charged by the gallon at the pump--the community where the is fuel is purchased receives a percentage to put toward its road fund. If the fuel tax does not generate enough money the roads will fall into disrepair. This is exactly where RBS right now. To provide additional funding for the city roads, the City of RBS passed liquor license law and dedicated the tax dollars for street repairs in 2018. Some communities have had to make the tough choice to raise property taxes and/or create special accessed taxes to address the conditions of the roads.

"Fuel tax is charged by the gallon at the pump--the community where the is fuel is purchased receives a percentage to put toward its road fund."

Often we think we are saving ourselves a dollar by shopping out of town, but in the long run it directly impacts our community and overall quality of life. We may save a few cents running over to the next community for fuel but we are building that communities roadways while ours fall into disrepair. So the next time your fuel gauge is getting close to the "E" think #FuelLocal. The tax revenue generated by shopping local is what builds our community!



References:

https://www.taxpolicycenter.org/briefing-book/how-do-state-and-local-sales-taxes-work

https://www.tn.gov/tdot/finance/gas-tax/nationwide-gas-tax-ranking.html

https://www.eia.gov/tools/faqs/faq.php?id=10&t=10

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