HomeMy WebLinkAboutNational City Sales Tax Update Newsletter - 4th Quarter (Finance)National City
In Brief
Receipts for National City's Octo-
ber through December sales were
6.1% higher than the same quarter
one year ago. Actual sales activity
was up 3.1% when reporting aber-
rations were factored out.
Autos and transportation posted a
strong quarter from car sales and
leases; however, the overall gain
was inflated by payment anomalies.
General consumer goods experi-
enced a strong sales quarter from
multiple categories including family
apparel, electronics, and specialty
stores.
Receipts from restaurants were lift-
ed, in part, by the addition of a new
eatery. The food and drugs group
also posted positive results.
The sales decline from service sta-
tions was partially offset by double
payments that inflated the current
quarter. Correspondingly; onetime
payments that boosted the compar-
ison quarter were responsible for
temporarily depressing the building
and construction sector.
Measure "D" generated an addi-
tional $2,656.974 in revenue for the
quarter, an increase of 6.6% over
the same quarter last year.
Adjusted for aberrations, taxable
sales for all of San Diego County
increased 3.3% over the compara-
ble time period, while the Southern
California region as a whole was up
2.7%.
CALIFORNIA
NATIONAL CITY
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Ac0.111,01 r.o
National City
Sales Tax Update
First Quarter Receipts for Fourth Quarter Sales (October - December 2013)
SALES TAX BY MAJOR BUSINESS GROUP
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
So
Autos
and
Transportation
General
Consumer
Goods
Restaurants
and
Hotels
TOP 25 PRODUCERS
IN ALPHABETICAL ORDER
1
Arco AM PM
Ball Honda Acura
Mitsubishi Suzuki
Kia
Frank Hyundai
Frank Subaru
Frank Toyota Scion
Highland Arco
JC Penney
Macys
Mor Furniture 4 Less
Mossy Nissan
Nordstrom Rack
Perry Chrysler
Dodge Jeep Ram
Perry Ford
Probuild Company
Ron Baker Chevrolet
Ross
South Bay
Volkswagen
South County Buick
GMC
Target
Tesoro Refining &
Marketing
Toys R Us
Univar
Victoria's Secret
Walmart
Wescott Mazda
1. 4th Quarter 2012
■ 4th Quarter 2013
LI LI NI N.
Fuel and
Service
Stations
Business
and
Industry
Food
and
Drugs
Building
and
Construction
REVENUE COMPARISON
Three Quarters — Fiscal Year To Date
2012-13 2013-14
Point -of -Sale S9,846,539 $10,540,633
County Pool 1,169,838 1,351,396
State Pool 4,520 6,238
Gross Receipts $11,020,896 $11,898,266
Less Triple Flip* $(2,755,224) $(2,974,567)
Measure D $6,934,110 $7,420,399
*Reimbursed from county compensation fund
Published by HdL Companies in Spring 2014 dE-x'
www.hdlcompanies.com : 888.861.0220 CC O M P A N I E s
Q4 2013
National City Sales Tax Update
Statewide Results
Excluding accounting anomalies, the
local share of sales and use tax re-
ceipts from California's 2013 holiday
spending rose 3.4% over the fourth
quarter of 2012.
Auto sales and leases and all cate-
gories of building and construction
materials were substantially up over
the previous year while tourism and
convenience -driven consumer de-
mand continued to produce healthy
gains in restaurant related revenues.
Sales of luxury goods and portable
electronics did particularly well while
cut backs in food stamp programs
and unemployment benefits reduced
spending at discount department
stores and many value oriented re-
tailers. Generally, the gains in sales
from online purchases were higher
than for brick and mortar stores.
Rising fuel efficiency resulted in low-
er receipts from service stations and
petroleum supply companies while
a slowing pace in solar and alternate
energy development reduced use tax
receipts from the business/industrial
segment.
Spending patterns were fairly consis-
tent throughout most regions.
E-Commerce Spending Up
Tax receipts from holiday spending
on general consumer goods at brick
and mortar stores grew by 2.3% over
last year's comparable quarter while
local tax revenues from online pur-
chases increased 16% and accounted
for 10.3% of total general consumer
goods sales and use tax receipts.
The rise in online retail shopping ac-
celerates trends that began 20 years
ago by sellers of materials and equip-
ment to business and industrial users.
Suppliers were able to take advantage
of business preferences for the ease
of online ordering by consolidating
sales offices and inventories into just
a few locations.
However, it was not until social net-
working and growth in the use of
mobile devices that the general public
became fully comfortable with online
purchasing. Retail analysts expect
the trend to expand and every ma-
jor retailer is testing new concepts to
reduce store size and overhead costs
by driving more of their sales to cen-
tralized web -based order desks.
New technology, recent court deci-
sions and legislative exemptions are
constantly reducing what is taxable
and has substantially altered the base
on which the tax was created in 1933.
The concentration of business sup-
plies and now consumer goods into
fewer and larger "points of sale" has
accelerated competition for what is
becoming a diminishing resource.
Local governments are now bidding
rebates up to 85% of the local tax
collected in exchange for location of
order desks.
ONLINE VS. BRICK & MORTAR
Year -Over -Year Percent Growth
30%
15%
0%
-15%
tia
'01 '03 '05 '07 '09 '11 '13
• Online • Brick & Mortar
REVENUE BY BUSINESS GROUP
National City This Quarter
Autos/Trans.
38%
Others
6%
us./Ind. Fuel
5% 5%
Cons.Goods
36%
Restaurants
10%
NATIONAL CITY TOP 15 BUSINESS TYPES
*In thousands
Business Type
Casual Dining
Department Stores
Discount Dept Stores
Electronics/Appliance Stores
Family Apparel
Heavy Industrial
Light Industrial/Printers
Lumber/Building Materials
New Motor Vehicle Dealers
Quick -Service Restaurants
Service Stations
Shoe Stores
Specialty Stores
Used Automotive Dealers
Women's Apparel
National City
Q4 '13* Change
121.4 6.1%
227.8 -0.9%
259.6 1.6%
88.3 17.2%
229.5 3.8%
51.8 -10.6%
54.8 107.9%
55.3 13.8%
1,106.1 6.8%
195.1 6.9%
191.4 -6.5%
69.2 1.9%
118.9 6.0%
89.8 29.9%
107.6 1.1°A)
County
Change
5.8%
0.5%
-1.0%
-5.4%
7.9%
37.7%
9.7%
344.1%
7.8%
7.8%
6.8%
3.4%
8.4%
9.7%
1.5%
HdL State
Change
6.0%
1.4%
0.2%
-0.5%
6.8%
13.4%
7.8%
265.5%
9.4%
7.9%
-2.7%
5.8%
7.5%
16.5%
2.6%
Total All Accounts
County & State Pool Allocation
Gross Receipts
$3,576.6
$489.3
$4,065.9
5.3%
11.9°A°
6.1%
8.1%
14.9%
8.9%
8.7%
9.4%
8.8%