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Tuesday, 2nd September 2014

in Bee Cave TX 78738

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Lexus moves on - Covert, not so much

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Lakeway City Council appears to have successfully complted their review of the new Lexus dealership to be built on RR 620. Lexus of Austin have also reported they have closed on their construction loan.

 

Meanwhile, not a word has been heard recently from local Cadillac/GMC dealer Covert, whose attempts to get the go ahead for a dealership on 71 near Nitro Swim seems to have been completely stymied by public pressure and repeated denials from Bee Cave City Council

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Maybe this tells us something about the two different city councils and their willingness for change. I'm sure Lakeway is more than happy to gain the tax revenue.
VOTES:-7
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Bee Cave doesn't need the tax money----they can make up for it in speeding tickets.
VOTES:1
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Auto dealerships hardly provide any tax revenue as auto sales are tax exempt so the only tax money a city receives is on service (which Lexus will not even have, I believe.) Don't throw insults unless you know what you are talking about.
VOTES:6
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Lexus will have very high service numbers and most of what they will have is what is called customer pay work---which is where the sales tax is generated--warranty work at Lexus is small and warranty is not taxed, I believe.
VOTES:0
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The two dealerships approached the two cities very differently. When a company shows a willingness to work with a community, they reap the benefits. Lexus approached Bee Cave first and changed courses when they were met with loud opposition. Lexus is a great corporate citizen and chose to engage the community in which they were looking to locate. They've conducted business in a far superior manner than Covert. And, having bought a car from both dealerships in the past, the manner in which they do business carries on down to the sales level as well.
VOTES:0
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Correct in cities being unable to collect sales tax from car sales. The other tax revenue possibility for cities is from property taxes. Bee Cave enjoys on of the lowest rates in the state at 2 cents per hundred of assessed valuation (ie. $200 per year for every $1million in valuation). That is not the case for Lakeway who generates a great majority of city revenue through property taxes, versus sales taxes like Bee Cave. Bee Cave is also very particular as much as possible about the
quality of its growth, understanding longterm impacts to quality of life and community desirability and uniqueness.
VOTES:2
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If I understand this correctly, car dealerships actually generate a huge amount of sales tax revenue---for the state, not for the city or the county, on the actual sale of the vehicle. They do generate a large amount of sales tax revenue on sales tax collected on service....in fact this revenue would far exceed most of the retailers in the bee cave area dependent upon volume and price of the service. A car dealership would also employ more than 100 employees that would in turn spend money in the bee cave area, send their kids to our schools and possibly create a large amount of income in our hospitals, etc. Another thing to consider is that it is highly inconvenient to own a luxury car here, you have to travel all the way to northwest austin for purchase or service or to I35, which I wouldn't do. There's more to consider than just "car dealerships are not what we want." Maybe the right dealership would be a positive impact on the bee cave community.
VOTES:-3
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Sorry, I am coming in a bit late to the story. Is the Lexus dealership owned by Lexus? And if so, is this something like what Tesla is looking to do, own their own dealerships? And Covert is the other group interested in constructing a dealership, what brand do they represent? Seems like we are missing something in the descriptions...
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Sorry, I'm brain dead, I see it is Lexus of Austin that is doing the Lexus store and that Covert shows to be Cadillac/GMC. Sorry, my bad.
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