Low gas prices mean lower tax revenue for Corning

Feb 26, 2015 8:03 PM

Cheaper gas prices always benefit the driver, but for one North State city its actually causing some budgeting problems. The lower fuel prices of the last month are hurting the sales tax revenue for the City of Corning. Located on I-5 the city has three major truck stops and the local government depends on the fuel industry. 57% of the city's sales tax revenue comes from fuel sales, since gas prices have gone down by about 25% over the past year the city isn't seeing as much green.

"We are going to be short on sales tax revenue to the tune of perhaps $100,000." says City Manager John Brewer.

The City of Corning has a nearly million dollar operating reserve and can use it if the short fall is great enough.


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