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Home My WebLink AboutTHIRD QUARTER NEWS LETTERReceipts from July through Sep- tember sales were 3.9% higher than: the same period one year ago, but. reporting :aberrations. skewed the data. Excluding anomalies, actual sales were up 1.6%. Electrical equipment results experi- enced a temporary jump due to one- time use tax: collections. Service station, department store, specialty; store, women's apparel, family ap- parel, restaurant with beer/wine and electronics/appliance store groups. showed increases; however,one- time paymentadjustments inflated the women's apparel, electronics store and restaurant comparisons: Proposition "D" receipts, up 8.2% after accounting adjustments were excluded, added another $2,027,806s to the city'ssales and use tax total: A onetime paymentaberration combined with business closeouts cut new motor vehicle dealer re- sults. Discount departments store, shoe store, used auto dealer; heavy, industrial and lumber/building mate- rials classifications were also down:': Temporary accounting adjustments reduced the heavy industrial drop. After factoring out payment anoma- lies, all of San Diego County was up 4.2%; statewide sales grew 4.7%. jaetrterarria ON/►L CIrr ational City Sales Tax Update Fourth,Quaner Rereipts for Third Quarter Sales Jul -Sep 2010) SALES TAX BY MAJOR BUSINESS GROUP $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Autos and Transportation General Consumer Goods Restaurants and Hotels TOP 25 PRODUCERS In Alphabetical Order Arco AM PM Ball Honda Acura Mitsubishi & Suzuki Forever XXI Frank Motors Hanson Aggrgts Pcfc Sthwst Highland Arco In N Out Burgers JC Penney Macys McCune Motors Mossy Nissan National City Auto Center One Source Distributors Perry Ford Probuild Company Ross South Bay Volkswagen Suzuki Target Thrifty Gas Univar Value Cars Vintners Distributors Walmart Wescott Mazda Kia Westair Gases & Equipment Business and Industry Fuel and Service Stations ▪ 3rd Quarter 2009 ■ 3rd Quarter 2010 Food and Drugs Building and Construction REVENUE COMPARISON Two Quarters — Fiscal Year To Date 2009-10 2010.11 Point -of -Sale County Pool State Pool $5,178,334 571,007 5,133 $5,451,289 645,659 3,890 Gross Receipts $5,754,474 $6,100,839 Less Triple Flip* $(1,438,618) $(1,525,210) Gross Trans. Tax $3,797,100 $4,083,255 *Reimbursed from county compensation fund Published by The HdL Companies in Winter 2011 www.hdlcompanies.com 1888.861.0220 COMPANIES Q3 2010 National City Sales Tax Update Statewide Overview California's allocation of local Bradley - Burns revenues for sales occurring July through September were 4.7% higher than the third quarter of 2009 after ac- counting anomalies were factored out. Higher fuel prices and usage, business investment in new equipment and technology, and solid gains in some categories of consumer goods and res- taurants all contributed to the increase. Receipts from food, drugs, and con- struction materials were slightly lower than last year's comparison quarter as was the allocation from autos which spiked during the "cash for clunkers" program of a year ago. The Silicon Valley continues to lead the recovery with gains 21/2 times higher than for California as a whole. Coastal region sales are generally outperform- ing the inland areas. The Sales Tax Picture at Mid -Year The first two quarters of 2010-11 pro- duced statewide receipts that are 4.2% higher than the first two quarters of 2009-10 after accounting aberrations are excluded. However, the year-to- date total is still 17.2% lower than the totals for the first two quarters of pre - recession 2006-07. Generally, prognostications for the remaining fiscal year are more upbeat than those of a few months ago and the fears of a double -dip recession have diminished. Stocks are at a two year high, preliminary data on fourth quarter business and consumer spend- ing is better than anticipated and the recent tax -cuts and extension of un- employment benefits is hoped to boost the nation's economy by $850 billion. In California, the growth in sales tax will be geographically uneven and tem- pered by high unemployment, mort- gage foreclosures and fallout from the state's budget deficit. Various segments of the sales tax base are projected as follows: Autos/Transportation- Industry sales reports were inflated by non-taxable fleet purchases earlier in the year but pent-up demand and easing credit are now producing solid consumer demand and new optimism. Posi- tive gains are expected over the next few quarters but not at pre -recession growth rates. Building/Construction- Unsold inven- tories, new tax exemptions for energy projects and modest public spend- ing translate into flat or minimal tax growth for another year or more. Business/Industry- Leaner and flush with cash, businesses are investing heavily in new technology, software and equipment. Sales tax gains will be agency and industry specific and primarily from suppliers of technol- ogy and companies serving the health, mining, petroleum and food indus- tries. Food/Drugs- some price increases but competition will keep tax revenues from this segment generally flat. Fuel/Service Stations - Speculation on crude oil futures is resulting in price increases that are expected to continue to soar through spring. Consumer Goods- Stock market gains are reviving luxury buyers while "fru- gality fatigue" is setting in for the rest of us. Holiday spending was stronger than expected for apparel, sporting goods, small electronics, and home furnishings. Analysts are skeptical about sustainability but generally proj- ect statewide growth of 3.0% to 3 '%. Restaurants/Hotels- Tourism and business travel is on the increase but price competition is expected to keep gains in sales tax revenue relatively modest. SALES PER CAPITA $8,000 $6,000 $4,000 $2,000 $0 Q3 07 National City 03 08 County Q3 03 09 10 California NATIONAL CITY TOP 15 BUSINESS TYPES Business Type New Motor Vehicle Dealers Restaurants No Alcohol Service Stations Discount Dept Stores Family Apparel Electrical Equipment Department Stores Women's Apparel Specialty Stores Used Automotive Dealers Heavy Industrial Electronics/Appliance Stores Lumber/Building Materials Restaurants Beer And Wine Shoe Stores Total All Accounts County & State Pool Allocation Gross Receipts National City 10* Change $730.0 -13.3 % -0.8% 7.4% -9.1% 12.1% 623.4% 6.9% 9.4% -1.1% -6.9% -3.9% 26.5% -10.4% 53.5% -10.7% $2,708.1 31% 325.1 11.0% $3,033.1 ( 3.9% 214.7 197.2 194.4 145.9 123.8 112.4 81.4 78.5 57.3 54.8 54.0 53.9 44.9 43.7 County Change -1.5% 3.5% 12.3% 5.4 % 8.5% 0.8% 3.8% -0.4% -1.0% 13.6% 25.3% 6.2% -4.4% -0.4% -3.5% HdL State Change -1.7% 5.1% 12.1% 5.6% 7.8% 11.9% 2.7% 2.8% -2.2% 9.3% 13.1% 18.3% -4.7% -0.9% -3.1% In thousands