Published: May 08, 2008 11:50 pm         

Local businesses hope to see rebate check effect

Enid area residents should receive more than $11 million over the next two months, as Internal Rev-enue Service ec-onomic stimulus payments arrive.

Estimating 23,044 households in Gar-field County, with an average of $500 per household, that comes out to $11,522,000 in total economic stimulus payments coming to Garfield County in the next few months.

The payments will be sent to households that paid taxes in 2007, up to $600 per individual and $1,200 per couple, plus $300 for each eligible child under age 17.

That impact is good news for area business owners who hope people will use the checks as intended — to purchase consumer goods.

Jon Blankenship, executive director of Greater Enid Chamber of Commerce, said the money probably will have varied uses.

“It’s intended to be an economic stimulus. I’m sure the administration is hoping people spend money on consumer spending and put money in circulation in local economies. It will probably have varied uses. Some will be spent in the local economy, some will elect to minimize their debt and others will put it in savings,” he said.

Blankenship conservatively estimated the impact at $20 million to $25 million in the Enid trade area. He said every dollar spent turns over about three times.

“I would think the majority of people will do consumer spending they may not have done otherwise,” he said.

Individuals may calculate their stimulus payment by going online to www.irs.gov.

According to Internal Rev-enue Service, the checks will be sent based on Social Se-curity numbers. If the last two digits of the Social Se-curity number are 00 through 20, payments were transmitted by May 2. Those ending in 21 through 75 will be sent by today and those ending in 76 through 99 will be sent May 16.

Paper checks will be issued May 16, 23 and 30; June 6, 13, 20 and 27; and July 4 and July 11.

People who filed income tax after April 15 will receive their economic stimulus payment about two weeks later than the schedule shows. A return must be filed by Oct. 15 to receive a payment this year. A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount.

Dave Jones, of Beds Unlimited in Oakwood Mall, said he cannot tell if the checks are impacting his business, although he said he has had a higher-than-normal cash business recently.

“I’ve had people come in here and lay up to $1,500 in cash for something, and I haven’t seen that since the holidays, or when people get their income tax refunds,” he said.

Jones said he will not have a good idea if he is being affected by the stimulus until after Mother’s Day.

At Northcutt Chevrolet, Buick and Northcutt Toyota, General Sales Manager Jeff Turnbow said any time there are tax rebate checks, some people use them as down payments on new vehicles.

“We certainly expect to see the same thing. It helps someone to be able to get a lower payment,” Turnbow said.

Northcutt is offering $500 worth of free gasoline with each purchase, but he expects to see the stimulus payments used as down payment.

Northcutt always experiences good months during March and April, especially in the used car business, he said.

“The more people spend in the local economy, the more business, the more employees on commission will make, and the more it will stimulate the economy. That check will come around to a lot of businesses in some form,” he said.

Shane Jackson, of Johnsons of Enid, predicted an increase in business. Jackson said people sometimes do not buy a car because paying for tag, title and tax plus down payment can be pricey.

“We should see an increase because we will see some relief on that,” Jackson said.