HomeMy WebLinkAboutQ1 Sales Tax 2018City of Azusa
Sales Tax Update
Second Quarter Receipts for First Quarler Sales (January - March 2018)
SALES TAX BY MAJOR BUSINESS GROUP
$500,000
■ 1st Quarter 2017
$400,000 ■ 1st Quarter 2018
$300,000
$200,000
$100,000
0
General Restaurants County Fuel and Business Building Food Autos
Consumer and and State Service and and and and
Goods Hotels Pools Stations Industry Construction Drugs Transportation
Top 25 PRODUCERS
IN ALPHABETICAL ORDER REVENUE COMPARISON
76 In N Out Burgers Four Quarters — Fiscal Year To Date
Arco AM PM Kali Matha Mobil
Azusa Arco Mancino Door & 2016-17 2017-18
Azusa Pacific Window
University McDonalds Point -of -Sale $4,912,977 $4,900,318
Chevron Outlet By ELS County Pool 699,256 680,905
Chick Fil A Ross
Costco Shell State Pool 3,915 1,668
CVS Pharmacy Stater Bros Gross Receipts $5,616,149 $5,582,891
Digital Printing Target
Systems Totten Tubes
Ferguson USA Gas
Enterprises
G & M Oil Valley Thrift Store
Heppner Hardwoods Virginia Hardwood
Published by HdL Companies in Summer 2018 Hd
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www.hdlcompanies.com 888.861.0220 c 0 M r A N i e s
CDTFA Changes
The California Department of Taxes
and Fees Administration (CDTFA)
implemented new reporting software
- Centralized Revenue Opportunity
System (CROS) with the first quarter
2018 tax filings. The change will al-
low CDTFA to collect and allocate tax
revenue more quickly than the prior
system making data more timely and
relevant for decision making purposes.
There will also be a greater emphasis
on electronic tax filing with the goal
of decreasing errors and misallocations.
During the changeover, CDTFA had a
hard cutoff of April 30 for tax returns.
Allocating the revenue received through
that period left some activity out of the
current quarter, pushing it to the second
quarter 2018. However, CDTFA will
be disbursing the revenue related to the
previously delayed payments with the
June 2018 monthly allocation.
In summary, the change in software and
partial allocations in the first quarter
7.018 naymc-tits will inflate actual dis-
tributions in June 2018 and be included
with second quarter 2018 data.
Statewide Results
Given the CDTFA changeover, the
statewide first quarter 2018 receipts were
i.QOJ/, lower than the FriHo-
g yea.. ...,w
ever, once HdL adjusted the results for
missing payments and other accounting
anomalies, the results were 5.9% higher
than the same period in 2017.
A stellar rebound in building -construc-
tion activity, compared to a year ago
when gloomy winter weather depressed
results, and continued increases in fuel
prices, were the primary contributors
to overall growth. Steady receipts from
purchases made online also helped boost
countywide use tax pool allocations.
After a long period of solid growth
in new cat- sales, much of the upward
movement within this group is now
coming from leases rather than put --
chases. Corporate tax breaks approved
by Congress in December 2017, are ex-
pected to have a positive impact on the
industrial sector- as businesses look to
invest excess cash.
Supreme Court Ruling
On Thursday, June 21, 2018, the Su-
preme Court ruled in a 5-4 decision
to require out-of-state online retailers
to collect sales taxes on sales to in -state
residents. The physical presence rule as
defined by Quill is no longer a clear or
easily applicable standaid, and the on-
line interstate marketplace was not the
prevailing issue before the court in 1992.
In California, numerous online retailers
already collect and remit state and local
taxes, including 2 of the 3 companies
involved in this Supreme Court case
(Wayfair and Neruegg).
According to a study conducted by the
California State Board of Equalization,
the total revenue losses related to remote
sellers for both businesses and house-
hold consumers were about $1.453 bil-
lion in fiscal year 2016-17. Unpaid use
tax liabilities in 2016-1 � average $60
per year for Baca i k-.ainori 1 is l iuuscr wru,
and California businesses average $171
per year in unpaid use tax liabilities.
The CUITA is currently reviewing the
court's opinion to determine next steps
to support taxpayers.
$4,000
$3,000
$2,000
$1,000
$0
Q1
15
Azusa
Q1 Q1 Q1
16 17 18
County California
Cons.Goods Restaurants
399u i 5
Pools
i 2%
Fuel
Autos Tans. 12%
4 Faudlt]aug Building f ".i:,.'1''
5% 6% 8%
"In thousands of dollars
Azusa
Business Type
Q1 '18" Change
Autcmctive Suppl� Stores
23.8 3.5°!
Building Materials
24.5 3.6%
Casual Dining
49.4 -58.0%
Contractors
19.5 13.7%
Convenience Stores/Liquor
18.8 -15.5%
Discount Dept Stores
- CONFIDENTIAL -
Drug Stores
-CONFIDENTIAL-
Family Apparel
-CONFIDENTIAL-
Fast-Casual Restaurants
15.9 -13.0%
Grocery Stores
19.6 9.6%
Heavy Industrial
50.2 18.1%
Light Industrial/Printers
25.2 -24.6%
Plumbing/Electrical Supplies
-CONFIDENTIAL-
Quick-Service Restaurants
113.3 2.5%
Service Stations
141.2 2.3%
County
Change
_,5ai
-3.0%
-1.1%
7.8%
1.3%
2.7%
-19.0%
9.5%
6.8%
8.9%
-0.2%
-10.2%
10.0%
-4.1 %
-3.8%
HdL State
Change
-A 10/
3.8%
-2.0%
21.6%
0.5%
2.8%
-27.9%
8.2%
6.8%
1.9%
11.7%
-12.2%
11.5%
-3.8%
4.6%
Total All Accounts 1,072.8 -12.4% -5.9% -1.8%
County & State Pool Allocation 144.8 -16.6% -10.3% .2.1%
Gross Receipts 1,217.7 -13.0% -6.4% .1.8%