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Home My WebLink AboutNewsletterReceipts for National City's July through September sales were 2.9°/n:.lower than the same quarter one year ago. Actual sales activity was up 6.5% when reporting aber- rations were factored out. A multi -quarter deduction to correct a prior allocation error in the building and construction group was the rea- son for the overall decline in gross receipts. A similar occurrence com bined with the conclusion of a public works project accounted for the drop in business and industry. Sales activity was in positive ter- ritory for apparel, department and discount department stores :.while:;;', a new store boosted home furnish- ings. The gain in auto -related ;sec- tors fromhigher sales and new deal- erships was overstated by a year- ago deviation. nigher fuel prices bumped up ser- vice station retums and restaurant `. receipts increased. Revenues from voterapproved. Proposition D" generated an ad- ditional $2,268,404 for a 9.2% in- crease over a year ago. Adjusted for aberrations, taxable sales for all of San Diego County increased ;7 0% over the 'compara- ble time period, whiie the Southern California region as a whole was up 8.3%. ..CALIFCRNIA'-� x[OepppA �ONA�IciCiTy aaG�- Sales Tax Update ' ition2i City:: • Fourth „Quarter Receipts for Third Quarter Sales 0'u4 - September 2011) SALES TAX BY MAJOR BUSINESS GROUP $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $o ($200,000) ($400,000) Autos and Transportation General Consumer Goods Restaurants and Hotels TOP 25 PRODUCERS In Alphabetical Order Arco AM PM Ball Honda Acura Mitsubishi & Suzuki Frank Motors Frank Subaru Highland Arco JC Penney Macys McCune Motors Mor Furniture for Less Mossy Nissan National City Auto Center National Gas Perry Ford Probuild Company Ron Baker Chevrolet Isuzu Ross Satis Vacuum South Bay Volkswagen Suzuki Target Thrifty Gas Univar Vintners Distributors Walmart Wescott Mazda Kia Westair Gases & Equipment Fuel and Service Stations Business an d Industry 3rd Quarter 2010 ■ 3rd Quarter 2011 Food and Drugs ti Building and Construction REVENUE COMPARISON Two Quarters — Fiscal Year To Date 2010-11 Point -of -Sale County Pool State Pool $5,451,289 645,659 3,8-90 2011-12 $5,673,614 645,465 399 Gross Receipts $6,100,839 $6,319,479 Less Triple Flip* $(1,525,210) $(1,579,870) Gross Trans. Tax $4,083,255 $4,476,201 *Reimbursed from county compensation fund - Published by HdL Companies in Winter 2012 www.hdlcompanies.com l 888.861.0220 dL. COMPANIes CaliforniaOverall Adjusted for accounting aberra- tions, statewide local sales and use tax revenues for. July through Sep- temberlransactions increased 8.6% over last year's comparison quarter. This. is ` the seventh consecutive quarterly gain since the beginning of the recovery All categories were up with re- ceipts from higher fuel prices ac- counting for much of the state- wide increase. Sales of new autos, consumer goods and quick and full service restaurants also exhibited solid growth - The Foggy Crystal Bali Although 2011-12 is shaping up.' to be a period of strong sales tax recovery, most analysts believe that the pace of growth will slow in 2012-13 with the only disagree- ment being over the degree of slowdown. Additional state budget cuts, con- tinued high unemployment, fur- ther declines in home values and unstable fuel prices are part of the uncertainty. The financial turmoil in Europe is also of concern. Manufacturers, growers, distribu- tors, transporters and other com- panies involved in export trade make up 25% of the state's gross product. The European crisis has the potential of slowing the de- mand for both U.S. and Asian goods which would also pare the growth of California's Asian mar- kets. Comparative strengthening of the U.S. dollar would also make ex- ports more expensive. Analysts worry about the resulting impact on Silicon Valley's technol- ogy industries, the Central Valley's agricultural exports and Southern California's transportation sector. Sales Tax and the Internet In 1992, the Supreme Court ruled that interstate commerce rules pre- clude states from requiring sellers without an in -state physical pres- ence to collect local taxes. Since that time, attempts to interest Con- gress in correcting the problem have been unsuccessful. With internet sellers becoming a major retail competitive force and more states adopting legislation expanding the definition of what constitutes "physical presence," the need for fairness and unifor- mity is softening opposition. This year, three competing bills were introduced in Congress that would allow the collection of local taxes. These :are: S.1452, H.R. 3179 and S. 1832. Given the general discord and pa- ralysis in Congress, there is some question of whether any of these will pass. However, a compromise agreement between the State of California and Amazon has resulted in legislation (AB 155) that requires in -state affiliates of remote sellers to begin collecting and remitting sales and use tax by September 15, 2012. Estimates on the amount of new revenues that will be generated have been difficult to develop but local agencies should not expect gains of more than $1 per capita. More on the congressional legisla- tion can be found in HdL's Decem- ber issues paper. SALES PER CAPITA $8,000 $6,000 $4,000 $2,000 $o Q3 08 National City Q3 09 County Q3 10 California NATIONAL CITY TOP 1 5 BUSINESS TYPES Business Type DepartrnentStores,. Discount Dept Stores Electronics/Appliance Stores Family Apparel Heavy Industrial Horne Furnishings Light Industrial/Printers Lumber/Building Materials New Motor Vehicle Dealers Restaurants No Alcohol Service Stations Shoe Stores. Specialty Stores Used Automotive Dealers Women's.Apparel. Total All Accounts County & State Pool Allocation' 298.5 -8.2% Gross Receipts $2,9444 >-2.9% National City, Q3'11* Change 119.5 6.3% 212.9 53.0 163.0 59.5 46.3 60.0 49.8 874.8 226.3 223.6 53.1 72.0 84.0 89.1 $26459 -2.3% 9.5% -1.9% 9.3% 1.7% 535.0% 91.0% -1.1% 19.8% 5.4% 13.4% 21.6% -9.2% 46.7% 13.9% County Change 3.1 % 0.7% -1.1% 10.0% 38.4% 6.1 % 10.0% 3.1% 11.1% 6.9% 18.2% 12.7% -0.5% 9.2% 11.9% HdL State '. Change 5.1% 3.1% -9.2% 7.9% 20.5% 7.5% 3.0% 4.1% 12.2% 7.0% 20.5% 16.1% 8,3% 10.9% 10.0% *In thousands Q3 11