Hudson is St. Croix County's retail center, research shows

By Randy Hanson

Forty-two percent of retail sales revenue generated in St. Croix County comes from the city of Hudson, according to information provided earlier this month by the St. Croix Economic Development Corporation.

Citing a publication entitled Demographics USA (1998 Zip Edition), the development corporation said Hudson had estimated retail sales of $243.3 million in 1997.

The next highest city was New Richmond, with $139.2 million in retail sales, 24 percent of the county total.

Demographics USA said River Falls' total was $114.3 million. Because River Falls actually is located in two counties (St. Croix and Pierce), the St. Croix County total of $579.6 million in retail sales is probably inflated, said Bill Rubin, executive director of St. Croix EDC.

The Wisconsin Department of Revenue estimated 1998 retail sales in St. Croix County at $399.3 million. Rubin said that because each retailer is required to report their sales to the state, the Revenue Department's figure is the most accurate.

A publication named Sales & Marketing Management estimated that $504.3 million was generated by county retailers in 1998.

If Demographics USA's estimate of Hudson retailers producing $243.3 million in sales in 1997 was accurate, the county would have collected $1.2 million from them through its 0.5 percent sales tax.

City officials have complained that not enough of the sales tax revenue is being returned to Hudson in the form of services.

Supervisor Donald Brown, chairman of the county board's finance committee, doesn't buy that argument, however.

"I don't know where people get the idea that a county is just for people in the country," Brown said. "The county is for everyone."

He said that if you analyze the services provided by county departments and the courts, you find that city residents benefit just as much as rural folks.

"Where the money is collected, it also goes back in many ways to those people," Brown said.

He added that it was the state Legislature that established the 0.5 percent optional sales and use tax for counties.

"The Legislature sets up the format that we operate under. This isn't something that the county dreams up or can change. There's nothing that we can do about it," he said.

Brown also said cities are well represented on the county board.

Rubin said he looked for a city-by-city breakdown of retail sales revenue because he is often asked questions about it.

"There's no motive behind this other than I'm sort of a self-confessed person who tracks numbers," he said. "We thought the person on the street might be interested in learning what kind of retail sales are generated out of Hudson or River Falls or whatever."

Rubin added: "I don't know if we can reach any conclusions other than it appears as though that there are various (retailers) that generate a great amount of revenue. As the population continues to grow, we're going to see more retailers popping up and that's going to be a good source of revenue for the county."