2011 Executive Proposed Budget

King County Personal Income and Retail Sales

The combination of a severe recession and the wealth losses from declines in housing and investment markets have led to significant declines in economically-sensitive revenues. For King County, the most significant effect is on the sales tax, which is the largest revenue source for transit and the second largest for the General Fund.

The figure to the right shows trends in personal income and taxable retail sales for King County over the last 20 years. The recent decline in retail sales is by far the deepest since the local option sales tax was authorized in 1970.

The decline in retail sales far exceeds the decline in personal income, reflecting a combination of lost wealth and high unemployment. Individuals and businesses are saving their money, not spending it, because of uncertainty about the economy.

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