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Home My WebLink AboutNational City Sales Tax Update Second Quarter 2011Receipts from second quarter -sales were 10% higher than the same pe- riod one year earlier but reporting aberrations- skewed the data; Ex- cluding anomalies, actual 7sales , • gained 4. 0., Increasesusedmotor mainlyt ddlieealiheer, new I -' vehicle. department ser- viceandf,,mily apparel,disconumost store, Lw' ent station, store,heavy types. industrial''_,n iReportingnhaehev shoeauto deaberrations restau- rantal er ndinflatedfamgi!d 1 • ouffiapparelp....groups.,iquarterly Higheruieservice ah family boosted. station totals. pricestals.- -- countywide at the T ecityrteriey theilan c allocation flomutolo• higher tax pool was use year ago.--- Women's apparel, specialty store and electrical equipment categories decreased. Temporary accounting adjustments that exaggerated year- agreceiptscaused the women's apparel decline; business closeouts cut specialty store proceeds. • Revenues-., freei voter -approved fParcotPonrianigti°cIn;°;v4eta,mr.aeurpep50-2rt:4ngafte ab- errations. ational City FORN/A RPM My 3L3 Sales Tax Update Third Quarter Receipts for Second uarter Sales (Aprjull 2011) 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 Costcoa Frank Motors Frank Subaru H & M Highland Arco JC Penney Macys McCune Motors Mossy Nissan One Source Distributors Perry Ford Probuild Company Ron Baker Chevrolet Isuzu Ross South Bay Volkswagen Suzuki Staples Target Thrifty Gas Univar Vintners Distributors Walmart Wescott Mazda Kia Westair Gases & Equipment Fuel and Service Stations Business and Industry • 2nd Quarter 2010 • 2nd Quarter2011 Food and Drugs Building and Construction REVENUE COMPARISON One Quarter — Fiscal Year To Date Point -of -Sale County Pool 2010-11 2011-12 S2,743,236 $3,027,755 322,993 349,143 State Pool 1,478 (1,793) Gross Receipts $3,067,707 $3,375,105 Less Triple Flip* $(766,927) $(843,776) Gross Trans. Tax $2,005,171 $2,207,797 *Reimbursed from county compensation fund Published by The HdL Companies in Fall 2011 www.hdlcompanies.com I 888.861.0220HdI COMPANIES Statewide Results California's local sales and use tax rev- enues for sales occurring April through June 2011 were 9.4% higher than the same quarter of 2010 after pay- ment aberrations were removed. This marks the sixth consecutive quarter of growth since the recovery began. Higher fuel prices accounted for much of the statewide increase. Easing con- sumer credit, sales incentives and pent up demand led to gains in new auto sales while consumers also showed signs of spending more freely in spe- cialty stores, home furnishings, apparel categories, jewelry and restaurants. Electronics sales in the Bay Area sharply outpaced statewide results and highlighted the continued strength of tech -oriented business in that re- gion. Stimulus funded infrastructure projects produced temporary gains in sales tax on concrete, asphalt and ag- gregates but are expected to wane later in the year as funding is depleted. Increased airport traffic and auto rent- als suggest that travel and leisure sales are in a recovery mode. Fuel Prices Boosting Receipts Second quarter fuel sales represented 38% of the total statewide sales tax in- crease. California consumers paid an average of $3.94 per gallon the week of September 12th, 94 cents higher than the same period of 2010, but be- low the all-time high of $4.59 in 2008. Crude oil prices, which account for about 85% of gasoline price variabil- ity, were $90.21 a barrel in September 2011 versus $141.06 in the summer of 2008. Although future gas prices are expect- ed to decline from this year's highs, in- creased exports of U.S. refinery output to other countries are expected to keep prices here at elevated levels. Growth in the Hourglass Economy The good news is that the economy is in recovery, the bad news is this may be as good as it gets according to a recent International Monetary Fund report which highlights problems caused by a shift to an hourglass economy. This type of economy is characterized by a large and expanding group at the top with high skills and high incomes offset by an expanding group at the bottom with low skills and low pay. The middle levels traditionally composed of skilled or semi -manual workers in good paying jobs continue to decline, giving the occupational income profile of the economy its distinctive shape. The 2010 Census revealed that most Americans' inflation -adjusted incomes were either stagnate or in decline with the proportion of people hying in poverty now at 15.3% while 24% of the nation's wealth is concentrated in the top 1/10th of one percent. Consumer spending has historically ac- counted for 70% of economic output and with the wealthiest 5% of Ameri- cans now accounting for 37% of all consumer spending, retailers are bifur- cating their marketing strategies into sales of high end and low end goods while reducing offerings for the disap- pearing middle class. Economists say the dependency on just a small portion of the population for increased spend- ing limits future growth potential and fosters more boom and bust cycles. This is because the wealthy splurge and speculate when their savings are doing well and quickly cut back when the value of their assets tumble. Analysts further argue that this lack of growth potential is why major corporations are sitting on record profits and not investing in more employees. SALES PER CAPITA $8,000 $6,000 $4,000 $2,000 so Q2 Q2 08 09 Q2 Q2 10 11 .tee mmessamanommostais National City County California NATIONAL CITY TOP 15 BUSINESS TYPES Business Type Department Stores Discount Dept Stores Electrical Equipment Electronics/Appliance Stores Family Apparel Heavy Industrial New Motor Vehicle Dealers Restaurants Beer And Wine Restaurants Liquor Restaurants No Alcohol Service Stations Shoe Stores Specialty Stores Used Automotive Dealers Women's Apparel Total All Accounts County & State Pool Allocation Gross Receipts National City Q2 '11* Change 121.0 8.3% 237.2 30.6% 71.8 -59.0% 50.4 1.1% 164,4 24.0% 48.1 7,4% 925.8 14.1% 48.0 3.3% 46,2 5.0% 220.5 -0.5% 230.8 19.6% 49.7 9.0% 73.0 -8.0% 71.4 16.6% 86.2 -10.2% $3,027.8 347.4 $3,375.1 County Change •0.7% 6.5% 8.1% 13.5% 13.3% -23,2% 10.1% -8,1 % 6.2% -0.8% 29.1% -1.2% 1.8% 7.3% 6.4% HdL State Change 0.5% 6.4% 12.9% 3.2% 12.7% 12.2% 9.8% 8.6% 3.4% 31.0% 7.2% 5.2% 10.3% 8.9% 8.0% 10.1% In thousands