HomeMy WebLinkAboutQ2 Sales TaxCity of Azusa
Sales Tax Update
ThirdQuarter Receipts for Second Quarter Sales (April -June 2017)
SALES TAX BY MAJOR BUSINESS GROUP
$500,000
2nd Quarter 2016
$400,000 ■ 2nd Quarter 2017
$300,000
$200,000
$100,000
$0
General Restaurants County Fuel and Business Building Autos Food
Consumer and and State Service and and and and
Goods Hotels Pools Stations Industry Construction Transportation Drugs
.F-
Top 25 PRODUCERS
IN ALPHABETICAL ORDER
Arco AM PM
Kali Matha Mobil
Auto Exchange West
Lagunitas Brewing
Azusa Arco
Company
Azusa Pacific
McDonalds
University
Outlet By ELS
Chevron
Rain Bird
Chick Fil A
Corporation
Costco
Ross
CVS Pharmacy
Shell
Digital Printing
Stater Bros
Systems
Target
Evas Shell
Totten Tubes
Ferguson
USA Gas
Enterprises
Valley Thrift Store
G & M Oil
Virginia Hardwood
REVENUE COMPARISON
One Quarter — Fiscal Year To Date
2016-17 2017-18
Point -of -Sale
$1,175,353
$1,228,674
County Pool
176,433
167,831
State Pool
412
(642)
Gross Receipts
$1,352,198
$1,395,862
Less Triple Flip*
$0
$0
*Reimbursed from counh, compensntion,ilnd
Published by HdL Companies in Fall 2017 HdEr�
www.hdicompanies.com 1888.861.0220 c o MP AA N I EE 5
California Overall
Local government's one -cent share of
statewide sales and use tax from trans-
actions occurring April through June
was 3.2% higher than the same quarter
of 2016 after payrtient aberrations ate
factored out.
The largest percentage increases were
from the countywide allocation pools,
building supplies and rising fuel prices.
Auto sales and restaurants continued to
nnct Solid an inc Except For vat„e ni-icPcl
apparel and dollar stores, most categories
of general consumer goods were down or
flat with the growth in online shopping
shifting tax receipts to in -state distri-
bution centers or to the countywide
allocation pools.
Receipts from business and industrial
transactions were lower than last year's
comparable quarter because of declines
in new alternative energy projects. Ag-
ricultural and new technology related
purchases exhibited healthy gains as
did sales of warehouse and construction
equipment. Most other categories were
down from 2016.
Where does the Money Go?
E-commerce, technology and changing
consumer preferences have retailers un-
dergoing a dizzying transformation as
they compete for customers through
online websites, mobile apps, home de-
livery, social media, pop-up/flex stores
and pick-up lockers as well as traditional
brick and mortar businesses.
The changes in how goods are invento-
ried, sold and delivered has created some
confusion in allocating local sales and
use tax. However, it still involves three
basic principles:
• Location where the sale is negotiated
• Location of eoods at time
• Ownership of goods being sold
Place of sale continues to be Califor-
nia's primary rule for allocating local
sales tax. If the inventory is owned by
the seller and is located in -state, the tax
goes to the location that participates in
the sale, either by receiving the order or
shipping the goods. If the order is taken
outside the state but the seller owns the
inventory and delivers the goods from
inside California, the tax is allocated to
the jurisdiction where the warehouse is
located. Otherwise, the tax is shared
by all agencies in the county where the
goods are shipped on a pro-rata basis
through the county allocation pools.
Ownership of the goods being sold is
also a factor. In order for an agency to
receive a direct allocation of local tax
for goods shipped from a California
fulfillment center, the location must be
the retailer's place of business and not
owned or operated by a separate legal
entity. If the retailer has no place of busi-
ness in California, the only opportunity
for local tax is an indirect allocation
through the countywide pools
For jurisdictions with transactions tax
overrides, that tax goes to the place of
purchase rather than the place of the
seller. For example, the sales tax on the
purchase of an automobile goes to the
seller's location. However, the transac-
tions tax, if any, goes to the jurisdiction
where the buyer's vehicle is registered.
$4,000
$3,000
$2,000
$1,000
$0 E 0
Q2
14
Azusa
Cons.Goods
36%-
*In thousands of dollars
Azusa
Business Type
Q2'17* Change
Automotive Supply Stores
26.7 -1.8%
Building Materials
33.2 19.0%
Casual Dining
63.9 17.0%
Contractors
19.2 -1.5%
Convenience Stores/Liquor
26.0 12.1%
Discount Dept Stores
-CONFIDENTIAL-
Drug Stores
- CONFIDENTIAL -
Family Apparel
-CONFIDENTIAL-
Garden/Agricultural Supplies
20.9 0.9%
Grocery Stores
21.1 7.7%
Heavy Industrial
46.8
11.1%
Light Industrial/Printers
42.7
7.3%
Plumbing/Electrical Supplies
-CONFIDENTIAL-
Quick-Service Restaurants
121.0
8.0%
Service Stations
155.5
7.7%
Total All Accounts 1,228.7 4.5%
County & State Pool Allocation 167.2 .5.5%
Gross Receipts 1,395.9 3.2%
Q2 Q2 Q2
15 16 17
County California
i lens. Build"
5% 7%
County
Change
0.3%
6.2%
3.1 %
8.0%
5.0%
3.3%
0.1 %
4.4%
10.6%
2.0%
-7.0%
1.9%
4.9%
5.5%
9.5%
4.8%
-5.2%
3.5%
Restaurants
15%
Bus./Ind.
10%
HdL State
Change
2.8%
6.1 %
2.2%
9.6%
5.2%
3.2%
0.8%
4.0%
4.4%
2.1 %
5,7%
3,7%
5.8%
8.6%
6.4%
-9.9%
4.1 %
Pools
12%
Fuel
11%