Boom or Bust? Hollister sales tax receipts remained steady with or without biker rally

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Hollister city officials have touted the return of the historic Hollister Independence Rally as a revenue opportunity for the city and local businesses alike. But questions remain about both the revenue and costs associated with the rally, which returns to downtown Hollister on July 4-5 after an eight-year absence. 

Hollister Mayor Roxanne Stephens has said on social media the event will see “millions and millions of dollars coming into our local economy.”

But an analysis of Hollister’s sales tax revenue between 2010 and 2024 shows sales tax receipts continued to grow even in the years after the 2017 rally despite the event’s cancellation.

Hollister City Manager David Mirrrione said the city’s sales tax revenue is impacted by various economic factors that complicate evaluating the impact of the rally, and added that “increased sales throughout the city (as a result of the rally) will certainly lead to an increase in collected sales tax.”

BenitoLink reviewed the city’s third quarter (July through September) sales tax revenue between 2010 and 2024 and found that its share of sales tax collection during that period steadily increased annually from $699,000 in 2010 to $1.7 million last year.

That suggests the city’s sales tax collections haven’t fluctuated according to whether the rally is held or not.

A city-sanctioned Hollister Independence Rally has been held on and off since 1997. It returned in 2013 following a break between 2009 and 2012, and continued through 2017. 

In 2013, the city’s sales tax revenue for the third quarter was $727,830, a decrease of 8.3% compared to the previous year, when the rally was not held.

In 2018, the first year after the rally was discontinued most recently, the city reported $1.19 million in sales tax revenue for the quarter, an increase of 19.6% compared to the previous year. 

Many local business owners and bikers have spoken in support of the rally, arguing it is an economic benefit for the city. In a 2022 advisory measure, 63% of Hollister voters said they supported the rally.

“People don’t realize that the city might be spending some money, but at the same time it’s also bringing in a lot of money going directly into our local businesses,” said Miguel Zendejas, a member of the local motorcycle club Top Hatters.

Mirrione said the rally has served as a powerful economic driver and cultural asset for the community.

“The rally draws a diverse mix of visitors—motorcycle enthusiasts, families, tourists—who discover Hollister’s downtown, heritage and hospitality, increasing the likelihood of return visits,” he said. “This influx supports local restaurants, retail shops, hotels and service providers, many of whom report some of their highest sales volumes during the rally weekend.”

Mirrione said the rally will generate significant hotel tax revenue noting that the new 12% rate takes effect July 1.

Conflicting information 

Meanwhile, city leaders have said it is estimated the two-day rally will cost $500,000, and city councilmember Rolan Resendiz has told news outlet KION that $450,000 has been raised in sponsorships. 

The numbers they have offered don’t agree with what Mirrione told BenitoLink, or with the city’s budget, which projects the rally will cost $648,250 and bring in $448,250. 

As for the sponsorships, Mirrione said event promoter Roadshows, Inc. of Reno, Nevada, has secured $94,500 and the city has secured $15,000 for a total of $109,500.

“It is important to note that revenue is not only generated via sponsorships, but also through various fees, the beer garden, paid parking lots, grant revenue from our insurance provider, and business license taxes,” Mirrione said.

According to a 2019 analysis of the Independence Rally by then-city manager Brett Miller, the city averaged $18,522 in income between 2013 and 2017. The figure includes the city losing $33,270 in 2016.

Hollister contracted with Roadshows in March and American Global Security in June, and so far, the two contracts for promotion and security account for $300,000 of the costs.

Under its contract with Roadshows, the city is obligated to pay the firm $30,000 to promote the event and secure at least $90,000 in sponsorships. According to the agreement, the city will pay Roadshows an additional $5,000 for each additional $20,000 in sponsorships.

Only one sponsor, Russ Brown Motorcycle Attorneys, has been listed on the event website. An additional sponsor, Biker Clothing Apparel, was named in a June 13 news release announcing the musical entertainment scheduled to perform at the Beer Garden, located on the corner of Seventh and East streets.

The city is also paying up to $270,000 to American Global Security for armed and unarmed security guards. 

City officials have cited liability and safety concerns as reasons for not holding the rally in past years. Hollister Police Chief Carlos Reynoso has said his department is already understaffed and has not been successful in getting enough support from neighboring departments to cover security for the event.

City officials have not identified the costs of insurance and staff time spent on planning and running the rally. 

BenitoLink reached out to Resendiz for comment but he said he was on vacation and referred any questions to Stephens or Mirrione. BenitoLink has reached out to Stephens several times since March to speak about the rally but she had not responded by publication time. 

In a June 8 social media video, Stephens invited residents to sign up to volunteer for the event.

“We have all the final details kind of worked out, the only thing that we’re missing is you,” she said. “We need some of you to help us to host this event.”

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