RR-085 Part 2
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TABLE IV CHANGES IN RETAIL SALES TAX COLLECTIONS: NILES- BENTON HARBOR-ST. JOSEPH - CASS-BERRIEN COUNTIES- MICHIGAN For sales from: December 1954 through November 1955 (1955) December 1956 through November 1957 (1957) December 1955 through November 1956 (1956) December 1957 through November 1958 (1958) Expressed in terms of index numbers with the 1956 Base Year= 100.0 BENTON HARBOR- CASS CO. AND BALANCE NILES ST. JOSEPH OF BERRIEN COUNTY MICHIGAN 1955 1956 1957 1958 1955 1956 1957 1958 1955 1956 1957 1958 1955 1956 1957 1958 Total Tax Excluding the Automotive Group 90.0 100.0 99.9 94.5 91.7 100.0 112.0 108.3 94.0 100.0 94.1 89.9 95 .1 100.0 99.6 95.3 Total Tax (For all 9 groups) .... 94.5 100.0 99.4 93.6 94.5 100.0 110.1 104.2 97.8 100.0 98.0 90.4 99.2 100.0 100.6 93.7 Groups Apparel .. 88.2 100.0 88.9 85.4 92.2 100.0 102.2 93.5 98.4 100.0 89.3 97.2 96.9 100.0 100.1 89.8 Building, lumber, Hardware .. 89.7 100.0 95.4 82.1 91.8 100.0 102.5 90.4 95.7 100.0 94.8 84.8 96.1 100.0 86.9 78.9 Foods .. 97.1 100.0 103.1 101.9 95.0 100.0 117.0 119.1 94.0 100.0 92.7 93.1 95.9 100.0 103.0 102.7 Furniture .. 87.2 100.0 111.7 87.6 88.3 100.0 114.4 101.9 95.8 100.0 105.7 99.9 94.5 100.0 99.3 84.7 General Merchandise .. 79.0 100.0 90.1 86.7 99.1 100.0 120.0 113.8 82.5 100.0 97.6 87.4 97.8 100.0 101.3 95.6 Specialty .. 82.5 100.0 96.4 90.8 90.7 100.0 112.6 108.9 97.1 100.0 102.7 94.8 95.3 100.0 100.7 96.5 Source: All data from the 1tJichigan Department of Revenue, Research and Statistical Bulletin, monthly i.'Jsues for the time period covered. b. General Merchandise, Apparel and c. Foods and Other Groups Furniture The Food Group, as here studied, includes not only res Sales of the stores in these groups are considered to be taurants and other transient eating places, but groceries the best indicators of central business district activity and other vendors of food for home consumption, the and should reflect the effect of the by-pass on that vital latter accounting for about two-thirds of the sales of the sector of the city's commercial economy. group. Food sales in Niles parallel those in the state as The general merchandise and apparel stores in Niles a whole. Furthermore, the combined food sales of the fared badly in 1957 and 1958 compared with those in Twin Cities and rural Berrien and Cass Counties pro the other areas shown. Furniture, by contrast, had a duce a similar index pattern. Therefore, it is concluded significant increase in 1957, which slightly exceeded the that the establishments in the food group in Niles were increase of like stores in Benton Harbor-St. Joseph, but not adversely affected by the by-pass and toll road in the following year suffered a severe decline exceed openings. ing that in any other area. The Specialty Group is a somewhat heterogeneous Were it not for the fact that local sources indicated one in which drug and cosmetic sales are most impor that Niles felt the recession in early 1957, that the Twin tant. Niles stores in this group experienced a decline Cities did not feel it until1958, and that Niles' apparent from 1956 to 1957 while like stores in the other areas prosperity in 1956 emphasizes declines in following had rising sales and by 1958 the drop in Niles was con years, one might be inclined to blame the relatively siderably greater than the decline elsewhere. But, as in poor showing of the general merchandise and apparel stores to the opening of the by-pass and the toll road. the general merchandise group, the base year, 1956, This may have been a factor, but there is not sufficient was one of relatively high sales in Niles and subsequent evidence for such a conclusion. Thus it is concluded declines are measured from that peak that the opening of the highway facilities had no major The Building, Lumber, Hardware Group reflects effect on business activity in the Niles central business building activity. Niles' establishments in this group did district. as well in the post-by-pass years as those in the counties, 61 better than those in the entire state, but somewhat stations would be adversely affected and which would worse than those in the "booming" Benton Harbor-St. be benefited. All of the "C" groups show decreased Joseph area. As would be expected, this class of busi sales after the opening of the by-pass and the toll road, ness is little affected by diversion of through traffic to while all of the "D" groups show increases, in some the by-pass. cases quite sizable. Because of the large increase of the number of stations in some of both kinds of group, d. Gas Stations -A Detailed Study the experience of individual stations could have been radically different from that indicated by the group To obtain a clear-cut picture of the effects of the by-pass totals. The drop for stations in the C-3a group, in which on establishments similarly oriented toward transient the number of stations remained unchanged, may give trade, but experiencing different degrees of traffic a better indication of what happened to individual change, a sales tax study was made of all gas stations in stations. Niles and the immediate area which appeared to obtain It is significant to note in Figure 9 the trend in sales the major part of. their income from the provision of taxes collected from the group C-1 stations which are automotive services. A total of 43 such stations, all but located on former M-60 east of Niles and which would three of which were on trunkline routes, were included have been the first to be affected by the opening of the in the study. There were enough stations (three or Indiana Toll Road to South Bend in August 1956. Col more) on most segments of each of the different routes lections from these stations in that year declined from to permit a comparison of business activity between an August-September peak to a low in December below groups of stations which, theoretically at least, should that of any of the other study years. Since this trend have been affected differently by the diversion of does not appear in any other group so early in the fall, it through traffic to the M-60 by-pass. The locations of is assumed that it is due to the opening of the toll road. the stations and their grouping is shown on Figure 8 together with short descriptions of each group. Stations in the "C" groups were all located on former D. SUMMARY AND CONCLUSIONS trunkline routes and some streets where decreases in Because the opening of the M-60 by-pass so nearly co traffic volume (some as high as 70 per cent) had oc incided with the initial impact of the general business curred. Stations in the "D" groups were in locations recession, it is difficult to arrive at definite and clear-cut which should not have been affected at all, or which conclusions on the effect of the by-pass on the basis of I should have been benefited by, the diversion of through published sales tax data. Examination of the changes of traffic. Groups D-2 and D-3 taken together are consid various basic groups of businesses in Niles and com ered the "control group" in this study. parison with like groups in the other areas lead to no Table V contains the index numbers of the sales definite conclusions as to the effect of the by-pass on the taxes paid by each of the various groups of stations in Niles central business district and provide no firm basis Niles, by all Niles' stations, and for comparison, by all for concluding that that district suffered any adverse gas stations in Michigan, Berrien and Cass Counties. effects. Nor did the restaurants or other establishments In addition, the table includes indications of the for serving or selling foods show any_ adverse effects; changes in traffic volume passing each group and in the In contrast to the inconclusiveness of the majority of number of stations making returns. Figure 9 shows the analyses based on sales tax collections the detailed graphically the month-by-month variation of sales taxes study of gas stations revealed quite clearly that gas sta collected from each of the groups of stations. tions located along the former routes of M-60 and U.S.- It should be pointed out that the data on which 112 through Niles were adversely affected by the diver analyses are based are influenced by factors extraneous sion of most of the through traffic to the by-pass. On to the subject of the study. Not only did the number of the other hand, some groups of stations appear to have stations in each group change during the study period, benefited from the changes in traffic patterns.