What will Dinuba do with an extra $3 million?

DINUBA, Calif.

Finance Director Beth Nunes smiles ear to ear as she talks about the $3.2 million in extra sales tax revenue the city of Dinuba just received. "It's very exciting. It was a prayer that was answered."

The money came after Nunes realized, the Best Buy Distribution Center in town was submitting sales taxes from its new online sales center to the state, and not the city of Dinuba.

Nunes said, "They were very excited when they put the distribution center in they didn't realize that it would have that affect on Dinuba they knew that they were submitting the proper taxes but they didn't realize those taxes could come to this community."

The city of Dinuba has now gone from preparing for police and fire layoffs this summer, to keeping everyone on staff, paying off all debts and putting $1.5 million back in its reserves.

Mayor of Dinuba, Mike Smith said, "Happy and disbelief -- kind of I'll believe it when I see and now it's here -- I'm happy."

Mayor Mike Smith says Dinuba has been hit hard by the tough economy. Over the last few years 34 employees were laid off or retired early, plus two car dealerships and a Save Mart grocery store have closed.

Smith said, "The next step would have been layoffs in public safety and that's something we've strived not to do."

Going forward the city of Dinuba can now expect to get $2 to $3 million alone just from Best Buy Distribution Center's online sales tax

The city will also receive money from Patterson Dental, another distribution center that is now selling products online.

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