HomeMy WebLinkAboutNational City Sales Tax Update Newsletter - 3rd Qtr (Finance)Q3
National City
In Brief
Receipts for National City's July
through September sales were
11.4% higher than the same quarter
one year ago.
Autos and transportation posted a
strong quarter from new and used
car sales and leases. In addition,
receipts from business and indus-
try were boosted by onetime pay-
ments.
Higher receipts from quick service
and fast casual eateries were re-
sponsible for the increase from the
restaurant group. Accounting ad-
justments that lifted grocery stores
inflated the food and drugs group.
Lower receipts from service sta-
tions partially offset the city's gains.
General consumer goods also post-
ed sales declines from family ap-
parel, department stores, and home
furnishings; however, the loss was
exaggerated by payment anoma-
lies. Onetime adjustments were re-
sponsible for temporarily depressing
building and construction.
Measure "D", the city's voter ap-
proved transactions tax generated
an additional $2,452,022, an 8.3%
increase over the same quarter last
year.
Adjusted for aberrations, taxable
sales for all of San Diego County
increased 6.1 % over the compara-
ble time period, while the Southern
California region as a whole was up
5.3%.
National City
CALIFORNIA
NATIONAL CITY
Sales Tax Update
Fourth Quarter Receipts for Third,Quarter Sales Quly - September 2013)
SALES TAX BY MAJOR BUSINESS GROUP
$1,600,000
$1,400 ,000
$1,200 ,000
$1,000 ,000
$800,000
$600 ,000
$400,000
$200,000
$o
Autos
and
Transportation
1
General
Consumer
Goods
Restaurants
and
Hotels
TOP 25 PRODUCERS
In Alphabetical Order
Arco AM PM
Ball Honda Acura
Mitsubishi Suzuki
Kia
C & M Motors Truck
Center
Costco Optical Lab
Frank Hyundai
Frank Subaru
Frank Toyota Scion
Highland Arco
JC Penney
Macys
Mor Furniture 4
Less
Mossy Nissan
Nordstrom Rack
One Source
Distributors
Perry Chrysler
Dodge Jeep Ram
Perry Ford
Probuild Company
Ron Baker
Chevrolet
Ross
Satis Vacuum of
America
South Bay
Volkswagen
South County Buick
GMC
Target
Walmart
Wescott Mazda
Pi
Business
and
Industry
Fuel and
Service
Stations
III 3rd Quarter 2012
■ 3rd Quarter 2013
Food
and
Drugs
Building
and
Construction
REVENUE COMPARISON
Two Quarters — Fiscal Year To Date
2012-13 2013-14
Point -of -Sale $6,450,617 $6,964,010
County Pool 735,187 864,634
State Pool 2,061 3,738
Gross Receipts $7,187,865 $7,832,381
Less Triple Flip* $(1,796,966) $(1,958,095)
Measure D $4,442,303 $4,763,425
*Reimbursed from county compensation. fund
Published by HdL Companies in Winter 2014
www.hdlcompanies.com 1888.861.0220 c o A N i e s
Hd[
Q3 2013
National City Sales Tax Update
Statewide Results
The local share of sales and use tax
revenues from the summer sales
quarter was temporarily reduced by
a state computer glitch that failed to
fully fund receipts from sellers of
building and construction supplies.
Actual sales activity was up 5.8%
over last year's comparable quarter
after adjusting for this and other ab-
errations. Overall performance was
generally similar throughout most
regions of the state.
New and used auto sales and leases
again grew at double digit rates and
were the primary contributor to the
quarter's statewide growth. With
on-line sales remaining strong and
more businesses reporting due to
the state's new out-of-state report-
ing requirements, countywide pool
allocations became the second larg-
est portion of this quarter's overall
increase. Recovering building and
construction activity was also signifi-
cant with a 9.7% gain after adjusting
for the delayed allocations.
Gains in most other segments were
relatively modest while receipts from
fuel and service stations declined for
the third consecutive quarter.
Local Sales Tax Measures
Ten of twelve proposals for sales tax
add-ons were approved in Novem-
ber as voters continued to support
funding local services where they
have more input and control.
New taxes were approved in An-
tioch, Corte Madera, Huron, Lark-
spur, San Anselmo and Scotts Val-
ley. Existing add-ons were either
increased or extended in El Monte,
Rohnert Park, San Rafael and Stock-
ton.
This brings the total number of city
transactions and use tax districts to
135 and countywide districts to 44.
Additional measures are expected to
appear on local ballots in 2014.
Tax Rebates
Effective January 1, AB 562 (Wil-
liams) requires public notice and
hearings on economic subsidies
exceeding $100,000. Identification
of beneficiaries of the subsidy, the
amounts, the beginning and end-
ing dates and promised tax and job
benefits are required as are periodic
up -dates.
As on-line sales divert a greater por-
tion of tax revenues from business
and consumer purchases to central-
ized fulfillment centers, rebates of up
to 85% are being bid in exchange for
being the "point of sale" for the re-
mainder. This bill encourages deeper
evaluation of agreements that are
collectively transferring an alarming
share of statewide local sales tax to
corporate bottom lines while cutting
revenues for public services.
Holiday Sales Tax Shifts
Local tax receipts from fourth quar-
ter sales will not be seen until March
but may differ from previous years.
Some forecasters predicted that on-
line shopping would account for
up to 40% of holiday sales which
would transfer that portion of the
tax from stores to central fulfill-
ment centers or county allocation
pools. Final tax results from holiday
spending will be pushed into June
based on a National Retail Federa-
tion survey that showed 80% of
shoppers gave at least one gift card.
Tax is not charged until a gift card is
redeemed.
SALES PER CAPITA
$8,000
$6,000
$4,000
$2,000
$o
Q3
10
Q3
11
Q3
12
Q3
13
National City County California
NATIONAL CITY TOP 15 BUSINESS TYPES
*In thousands
Business Type
Auto Lease
Casual Dining
Department Stores
Discount Dept Stores
Electrical Equipment
Electronics/Appliance Stores
Family Apparel
Light Industrial/Printers
New Motor Vehicle Dealers
Quick -Service Restaurants
Service Stations
Shoe Stores
Specialty Stores
Used Automotive Dealers
Women's Apparel
National City
Q3 '13*
63.8
102.7
137.6
218.4
77.9
65.2
153.1
92.4
1,277.0
204.5
189.0
60.2
76.6
97.3
76.1
Change
36.0%
-0.3%
-4.1%
-1.3%
140.6%
9.3%
-11.1%
193.0°A
12.9%
9.0%
-14.7%
1.7%
10.7%
11.6%
-0.1%
County
Change
22.7%
1.3%
1.1%
-4.1%
-23.7%
-0.5%
6.0%
-4.2%
12.6%
4.3%
-2.3%
4.0%
9.3%
0.1%
1.3%
HdL State
Change
18.1%
2.8%
1.6%
-8.1%
-2.7%
4.2%
5.7%
2.9%
12.8%
4.1%
-1.5%
6.5%
7.7%
11.5%
1.0%
Total All Accounts
County & State Pool Allocation
Gross Receipts
$3,541.7
$454.2
$3,995.9
9.4%
29.4%
11.4%
2.4%
21.1%
4.2%
2.5%
12.5%
3.5%