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In Brief
The allocation of sales and use tax
revenues from National City's April
through June sales quarter was
6.6% higher than the same quarter
one year ago.
A strong sales quarter for autos,
motorcycles and auto leasing plus
recent additions to the consumer
electronics category all contribut-
ed to the increase. The retroactive
correction of a reporting error in the
shoe store classification was also a
factor.
The gains were partially offset by a
decline in fuel prices and usage, by
the previous loss of a point of sale
for a construction supplier, and by
an accounting negative adjustment
in the business -industry group.
Adjusted for aberrations, sales and
use tax receipts for all of San Diego
County and Southern California as a
whole were up 5.2% over the com-
parable time period.
- CALIFORNIA -
National City
NATIONAL CITY Sales Tax Update
Third Quarter Receipts for Second _Quarter Sales (April - June 2013)
SALES TAX BY MAJOR BUSINESS GROUP
$1,600,000
$1,400,000
$1,200,000
$200,000
$o
Autos
and
Transportation
General
Consumer
Goods
Restaurants
and
Hotels
TOP 25 PRODUCERS
In Alphabetical Order
Arco AM PM
Ball Honda Acura
Mitsubishi Suzuki
Kia
Frank Hyundai
Frank Subaru
Frank Toyota Scion
Highland Arco
1 C Penney
Macys
Mor Furniture 4
Less
Mossy Nissan
Nordstrom Rack
Perry Chrysler
Dodge J eep Ram
Perry Ford
Probuild Company
Ron Baker
Chevrolet
Ross
South Bay
Volkswagen
South County Buick
GMC
Sweetwater Harley
Davidson
Target
U niva r
Vans
Vintners
Distributors
Walmart
Wescott Mazda
Fuel and
Service
Stations
Business
and
Industry
In2nd Quarter2012
■ 2nd Quarter2013
Food
and
Drugs
Building
and
Construction
REVENUE COMPARISON
One Quarter — Fiscal Year To Date
Point -of -Sale
County Pool
State Pool
Gross Receipts
Less Triple Flip'
2012-13 2013-14
$3,213,878 $3,422,336
383,014 411,739
3,226 2,386
$3,600,118 $3,836,461
$(900,030) $(959,115)
Measure D $2,177,893 $2,311,403
*Reimbursed from county compensation fund
Published by HdL Companies in Fall 2013 ri ,a
www.hdlcompanies.com 1888.861.0220 •
Q2 2013
National City Sales Tax Update
State Overall
Adjusted for accounting anoma-
lies, receipts from local govern-
ments' one cent sales and use tax
were up 5.4% over the second
quarter of 2012.
More than half of the increase was
driven by a strong quarter for auto
sales plus new revenues flowing to
the countywide use tax allocation
pools largely as result of the previ-
ous passage of AB 155's expanded
definition of nexus for out-of-state
companies required to collect Cali-
fornia sales and use taxes.
Receipts from the building and
construction categories exhibited
significant gains reflecting the be-
ginning of a recovery in new hous-
ing construction and considerable
remodeling activity. Restaurant
sales were also strong but limited
to low priced quick service chains
and higher priced fine dining res-
taurants with full liquor licenses.
Gains from general consumer
goods were modest overall and
tended to be retailer and communi-
ty specific. Tax revenues from fuel
were down from last year's compa-
rable quarter while receipts from
business and industrial purchases
were flat with the few increases in
that group primarily tied to agricul-
ture and food processing.
The Remaining Fiscal Year
The general consensus is that the
state's economy will continue to
recover in 2013-14 but sales tax
growth may be more modest in the
second half of the fiscal year than
the first half.
Auto sales which have been up by
double digits from years of pent-
up demand are expected to plateau
in another quarter or two with the
pace of growth returning to more
normal levels. With consumers
taking on more debt to purchase
new cars and homes, discretion-
ary spending on other items is ex-
pected to slow. Low inflation, price
competition and a job recovery tilt-
ed toward low paying or part-time
work will also keep the cost of tax-
able goods in check.
The six year boom in the state's
technology sector appears to be
slowing with companies shifting
from buying their own hardware
and software to renting computer
power through cloud based servic-
es. Gas prices will continue to be
impacted by refinery shutdowns,
Middle East crises and oil specu-
lators. However with today's new
cars almost 20% more fuel efficient
than those sold only six years ago,
further tax gains from this segment
are not anticipated.
Continued recovery in construction
activity is expected to generate a ma-
jor share of sales tax growth in the
second half of the fiscal year. With
rising home and stock market values
benefiting higher income families,
luxury goods in all categories are
also projected to show solid gains.
SALES PER CAPITA
$8,000
$6,000
$4,000
$2,000
$o
Q2
10
National City
Q2
11
County
Q2
12
Q2
13
California
REVENUE BY BUSINESS GROUP
National City This Quarter
Autos/Trans.
45%
Others
6%
us./Ind. Fuel
5% 6%
Cons .Goods
28%
Restaurants
10%
NATIONAL CITY TOP 15 BUSINESS TYPES
Business Type
Auto Lease
Department Stores
Discount Dept Stores
Electronics/Appliance Stores
Family Apparel
Heavy Industrial
Lumber/Building Materials
New Motor Vehicle Dealers
Restaurants Liquor
Restaurants No Alcohol
Service Stations
Shoe Stores
Specialty Stores
Used Automotive Dealers
Women's Apparel
National City
Q2 '13*
52.6
147.5
205.5
72.8
153.5
57.2
55.5
1,239.2
48.4
249.1
189.5
91.0
75.8
102.0
80.1
Change
75.6%
-1.4%
3.2%
27.1%
-5.5%
12.6%
5.1%
14.2%
-1.9%
5.6%
-11.0%
67.5%
10.3%
22.9%
0.2%
County
Change
3.7%
-0.7%
2.0%
6.6%
5.2%
10.4%
-3.8%
12.6%
4.6%
1.9%
-9.5%
49.6%
4.1%
0.6%
5.3%
HdL State
Change
13.4%
0.2%
2.3%
4.7%
4.7%
6.1%
-4.4%
11.1%
9.3%
5.9%
-5.7%
39.9%
5.1%
9.4%
3.0%
Total All Accounts
County & State Pool Allocation
Gross Receipts
$3,422.3
414.1
$3,836.5
6.5%
7.2%
6.6%
3.9"
7.0%
*In thousands