Manville Comments on Santa Ana’s Auto Dealer Subsidies

Michael Manville, associate professor of urban planning, was quoted in a Voice of OC article about subsidies to local car dealerships in Santa Ana. Amid fears of lowered levels of commerce in the wake of rising sales taxes, Santa Ana officials said they are reinvesting in the local economy through the automotive industry, by subsidizing a number of car dealerships in hopes that city residents will see direct benefits. This subsidy is designed to push residents to spend their money at local car dealerships rather than going elsewhere to purchase cars. The article noted that a number of the dealerships have been important campaign contributors to some city officials. “The city seems to be concerned about the sale of automobiles as opposed to other sales and is taking steps to selectively exempt or cushion those sales from whatever it imagines the impact of the sales tax increase will be,” Manville said.


 

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