Yumans asked to keep dollars in town

Shopping online poses many dangers that range from identity theft to Internet scams, but the biggest danger could be its impact on the local community.

With the state of the current economy and the upcoming holiday season approaching, the Yuma County Chamber of Commerce is starting a new campaign to encourage Yumans to shop locally.

"The theme for the holidays is for everyone to shop locally," Ken Rosevear, executive director of the Yuma County Chamber of Commerce, said.

Rosevear said the campaign will continue past the holidays because people need to be more sensitive about keeping their purchases local, especially since "we are in the middle of a downturn."

"We are going to push this (campaign) as long as necessary," he said.

In tough economic times, people are sometimes tempted to shop online or out of town for the best deal, but they might not realize how much these out-of-area purchases hurt the local economy, which in turn, hurts the local community, he said.

When a person shops locally, the money they spend here stays in the area and also contributes to the local tax revenue.

A dollar spent locally turns five, six, or even seven times in the local community, Rosevear explained. It goes to payroll and to local business purchases. It continues through the local economy several times.

Additionally, tax revenue generated from local purchases goes into the general fund, Rosevear said. The general fund, which is the city's primary operating fund, is currently in a $3 million shortfall.

If that same dollar gets spent outside the area, it no longer affects people in Yuma.

"Nothing comes back from that dollar," Rosevear said. "Nothing."

According to Rosevear, almost eight out of 10 businesses in Yuma are small businesses, which means they employ 25 or fewer employees. Since so many of the local businesses are small businesses, he said it is important to keep them running.

"I think it is a good idea to support our local people," said Donna George, chamber member and owner of The Peanut Patch. "I think if we saw more local shopping, the season may be a little longer."

Local businesses affect the community in more ways than just providing products and services to the community, Rosevear said. They often help their community by donating products and services and volunteering their time and talents for community projects.

Rosevear said he also believes it is a good idea to support local businesses because shopping locally provides customers with the security of dealing with a local person who works hard to provide after-sale service and who has an interest in protecting their own reputation.

If you purchase products with someone out of town, it can be difficult to deal with them on customer service issues or to return items to them, he said. Many times customers need to pay shipping charges to return items to out-of-town businesses.

Online shopping is often a big draw for people because of the savings and convenience. However, the savings customers receive from online retailers who do not charge sales tax may not be savings at all.

"An Arizona purchaser is liable for use tax on goods purchased from an out-of-state vendor that did not collect the use tax," according to the Arizona Department of Revenue's Publication 610.

Use tax is sales tax when it is not collected by the retailer. Anyone who believes they owe use tax can contact the state Department of Revenue to make a one-time payment or set up a use tax account for multiple purchases. If located, people who do not pay the use tax are subject to penalties and interest, according to the department.

Rosevear wants Yumans to remember the "big picture" that shopping locally brings benefits back to them in ways they may not even realize.