HomeMy WebLinkAboutQ3 Sales Tax_201802271649257411City of Azusa
Sales Tax Update
Fourth Quarter Receipts for Third Quarter Sales (July - September 2017)
SALES TAX BY MAJOR BUSINESS GROUP
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
General Restaurants County
Consumer and and State
Goods Hotels Pools
Arco AM PM
Kali Matha Mobil
Auto Exchange West
McDonalds
Azusa Arco
Outlet By ELS
Azusa Pacific
Rain Bird
University
Corporation
Chevron
Ross
Chick Fil A
Shell
Costco
Stater Bros
CVS Pharmacy
Target
Digital Printing
Tektronix Texas
Systems
Totten Tubes
Evas Shell
USA Gas
Ferguson
Enterprises
Valley Thrift Store
G & M Oil
Virginia Hardwood
i 3rd Quarter 2016
■ 3rd Quarter2017
0
0
d
W
a
Fuel and
Business
Building
Autos
Food
Service
and
and
and
and
Stations
Industry
Construction
Transportation
Drugs
REVENUE COMPARISON
Two Quarters — Fiscal Year To Date
2016-17 2017-18
Point -of -Sale
$2,351,299
$2,512,297
County Pool
333,630
344,685
State Pool
816
362
Gross Receipts
$2,685,745
$2,857,344
Published by HdL Companies in Winter 2018 HdU
www.hdicompanies.com 1 888.861.0220 C O M P A N I E S
Statewide Trends
After factoring for accounting anoma-
lies, local government's one -cent share
of statewide sales and use tax from July
through September sales was 3.6% high-
er than 2016's summer quarter.
Rising fuel prices, increased demand
for building -construction materials and
the continuing acceleration in online
shopping for merchandise shipped from
out-of-state that is expanding receipts
from the countywide use tax allocation
pools were the primary contributors to
the overall increase.
This quarter marked the anticipated
leveling off of auto sales while agri-
culture and transit -related purchases
helped boost otherwise tepid gains in
business -industrial receipts. Restaurant
sales exhibited healthy overall gains of
3.5% ahliough growth rates are slowing
from previous quarters.
Receipts from consumer goods sold by
bricl< and mortar stores were up 0.7%
over the previous year while revenues
from online purchases grew 13.3%.
Cannabis Taxation
A 15% excise tax on retail cannabis and
cannabis products along with a cultiva-
tion tax and sales tax on recreational uses
take effect on January 1, 2018.
Significant sates tax revenues are not
expected until late 2018-19 as retail
start-ups comply with lengthy state and
local permitting processes. Although
sales of medicinal cannabis became
exempt in 2016 for purchasers with a
state issued Medical Marijuana ID card,
jurisdictions with dispensaries continue
to receive sales tax from that source as
most patients prefer to use a note from
their physicians.
Some decline in revenues from medi-
cal dispensaries are expected as users'
transition to new purchase options
and because of lower prices caused by
anticipated overproduction and the six
month window that suppliers have to sell
existing inventory grown under previous
regulations.
Sales Tax and Natural Disasters
The recent firestorm tragedies have
raised questions on potential bumps in
sales tax revenues from reconstruction
and recovery activities.
HdL analyzed the sales tax data from
the 1991 Oakland Hills, 2003 San Di-
ego Cedar and 2007 San Diego Witch
fires which involved the combined loss
of over 7,700 structures. Surprising-
ly, there were no identifiable gains in
construction and auto -related purchases
within the impacted areas during the
five years after each event with receipts
following normal economic cycles ex-
perienced by the state as a whole.
Further analysis suggests that though
the individual losses are catastrophic,
purchases of replacement items arc a
small fraction of the impacted area's
total spending and is often spread to
other jurisdictions where disaster victims
relocate. Tax receipts from construction
spending are defused over time because
of lengthy claims and permitting pro-
cesses that cause up to 40% of disaster
victims to relocate leaving vacant lots
that are not immediately redeveloped.
$4,000
$3,000
$2,000
$1,000
$0
Q3
14
Azusa
Cons.Goods
1111111111
03 Q3 03
15 16 17
County California
b% 7%
Restaurants
13%
`In thousands of dollars
Azusa
County
HdL State
Business Type
Q3'17" Change
Change
Change
Auto Repair Shops
24.1 4.3%
1.3%
3.7%
Automotive Supply Stores
26.3 7.8%
1.8%
3.7%
Building Materials
30.0 51.4%
3.3%
5.6%
Casual Dining
53.6 19.5%
3.2%
2.4%
Contractors
21.5 22.3%
14.0%
6.5%
Convenience Stores/Liquor
27.8 -12.5%
7.1%
7.8%
Discount Dept Stores
-CONFIDENTIAL-
6.3%
6.1%
Electrical Equipment
-CONFIDENTIAL-
-4,6%
-6.6%
Family Apparel
-CONFIDENTIAL-
3.3%
1.6%
Heavy Industrial
49.3 9.4"%
-5.4"%
6.2%
Light Industrial/Printers
28.7 -23.7%
-5.2%
4.7%
Plumbing/ElectricalSupplies
-CONFIDENTIAL-
3.4%
4.6%
Quick -Service Restaurants
118.9 17.3%
3.7%
4.8%
Service Stations
157.8 6.2%
6.8%
9.2%
Stationery/BookStores
-CONFIDENTIAL-
-9.4%
-9.0%
Total All Accounts
1,283.6 9.2%
3.2%
4.1%
County 8 State Pool Allocation
177.9 12.9%
6.7%
4.8%
Gross Receipts
1,461.5 9.6%
3.6%
4.2%
'ools
2%
Fuel
11%