People in Orange County are spending a lot of money — but millions of retail dollars are going to businesses elsewhere.
The county lost $728 million in retail sales to other places in 2012, according to the county’s annual State of the Community Report, which was released during a Chapel Hill-Carrboro Chamber of Commerce event on Tuesday.
Aaron Nelson, president and CEO of the chamber, said county residents spent a total of $1.7 billion on retail purchases in 2012.
The difference between how much residents spend and how much of it is spent in Orange County is called a “retail gap,” Nelson said.
Orange County’s retail gap is larger than that of its neighboring counties. At $376 million, Durham County’s gap is about half of the gap in Orange County. Chatham County’s is less than a third of its neighbor’s at $236 million.
According to the report, the top two categories in which revenue is lost are general merchandise stores and vehicle sales and parts dealers.
Despite the gap, the report says retail sales in the county are growing.
Orange County collects most of its taxes from residential properties. Only a small percentage of taxes comes from commercial properties.
Nelson said this puts a greater burden on residents, making Orange County’s property tax rates one of the highest in the state.
