HdL Sales Tax Report for CY2021 Q2 Saleswww.hdlcompanies.com | 888.861.0220
Q2 2020*
Q2 2021*
Legend
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity
General
Consumer
Goods
County
and State
Pools
Restaurants
and
Hotels
Autos
and
Transportation
Fuel and
Service
Stations
Building
and
Construction
Food
and
Drugs
Business
and
Industry
TOP 25 PRODUCERSCITY OF ENCINITAS HIGHLIGHTS
Published by HdL Companies in Fall 2021
SALES TAX UPDATE
CITY OF ENCINITAS
2Q 2021 (APRIL - JUNE)
7 Eleven
76
Best Buy
BMW of Encinitas
Cardiff Seaside Market
Dick’s Sporting Goods
Encinitas Ford
Financial Services Vehicle Trust
Hansen Surfboards
Herman Cook Volkswagen
Home Depot
Home Goods
Pacific Coast Grill
Quick Shine Car Wash
Ralphs
REI
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Trader Joes
Uncommon goods
Valero
Vons
Walmart Supercenter
Encinitas’ sales tax receipts from April
through June were 30.3% above the first
sales period in 2020. Adjustments for
delayed payments and other reporting
modifications resulted in actual sales
that were up 41.3%.
Overall place of sale collections soared
52.3% compared to the extreme lows
of a year ago, during the height of the
pandemic shut-downs. All but one major
sales tax category posted huge increases.
The City’s largest business segment,
general consumer goods, saw a big
jump in sales of apparel, sporting
goods, home furnishings, and other
general merchandise – surging 62% and
reflecting a return to in-store shopping
as people felt safer with the roll-out of
vaccines. Restaurant activity also roared
back with quick-service and casual
dining leading the rebound. Similarly,
the combination of increased gas prices,
a return to in-person work and more
travel drove fuel and service station
revenues higher. Mirroring statewide
trends, autos-transportation revenues
grew, assisted by a rise in auto repair
shop activity.
The City’s share of the countywide use
tax pool allocations edged up 6.6%.
This growth was boosted by new taxes
on out-of-state internet purchases and
surges in online shopping as people
continue to embrace the convenience of
e-commerce.
Net of adjustments, taxable sales for all of
San Diego County grew 40.5% over the
comparable time period; the Southern
California region was up 40.3%.
TOTAL:$ 4,061,699
41.3% 40.5% 37.3%
COUNTY STATE
ENCINITAS
2Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '21*
EncinitasBusiness Type Change Change ChangeCountyHdL State
73.9%94.1%111.8% 363.9 Service Stations
130.4%153.1%132.4% 331.1 Casual Dining
35.8%37.6%114.3% 177.1 Sporting Goods/Bike Stores
28.8%34.0%39.3% 172.4 Quick-Service Restaurants
-0.9%-2.4%-5.8% 164.1 Grocery Stores
88.5%84.6%162.4% 131.2 Home Furnishings
43.6%48.7%44.6% 108.0 Fast-Casual Restaurants
230.5%191.8%229.7% 99.6 Family Apparel
67.7%76.6%67.7% 94.7 Specialty Stores
7.1%5.4%5.0% 85.9 Convenience Stores/Liquor
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Fiscal Year*
22%
Pools
14%
Restaurants
14%
Autos/Trans.
7%
Building
4%
Bus./Ind.
25%
Cons.Goods
8%
Food/Drug
7%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS2Q 2021
STATEWIDE RESULTS
The local one cent sales and use tax from
sales occurring April through June, was 37%
higher than the same quarter one year ago
after factoring for accounting anomalies
and back payments from previous quarters.
The 2nd quarter of 2020 was the most
adversely impacted sales tax period related
to the Covid-19 pandemic and Shelter-
In-Place directive issued by Governor
Newsom. The 2Q21 comparison quarter
of 2Q20 was the lowest since 2Q14
due to indoor dining restrictions at most
restaurants; non-essential brick and mortar
store closures; and employee remote/work
from home options which significantly
reduced commuting traffic and fuel sales.
Therefore, similar to the 1st quarter 2020
comparison, dramatic percentage gains for
2Q21 were anticipated and materialized.
Up to this point through California’s recovery,
we’ve seen some regions experience
stronger gains than others. However, with
the latest data and the depths of declines
in the comparison period, statewide most
regions saw very similar growth.
Within the results, prolonged gains by
the auto-transportation and building-
construction industries generated higher
receipts. Although the explosion of sales
by new and used car dealers has come as
welcome relief, the latest news of inventories
being stretched thin due to the micro
processing chip issues earlier in the year may
result in a headwind into 2022. Conversely for
the building-construction group, as housing
prices in many markets increased over the
last year, sustained available homeowner and
investor equity is in place for the foreseeable
future. Receipts from general consumer
goods marked a steady and expected come
back, led by family apparel, jewelry and home
furnishing stores. When combined with solid
greater economic trends, this is a welcome
sign for many companies as a lead up to the
normal holiday shopping period later this
calendar year.
As consumers flock back into retail locations
and with AB 147 fully implemented, growth
from the county use tax pools - largely
enhanced by out-of-state online sales activity
- returned to more traditional gains of 9%.
These results also included the reallocation
of tax dollars previously distributed through
the countywide pools to specific local
jurisdictions that operate in-state fulfillment
centers. Thus, the business and industry
category, where fulfillment centers, medical-
biotech vendors and garden-agricultural
supplies are shown, jumped 26%.
In June, many restaurants reopened indoor
dining. Given consumer desires to eat out
and beautiful spring weather, all categories
experienced a strong, much-needed rebound.
However, labor shortages and a rise in menu
prices continue to be a concern.
Looking ahead, sustained sales tax growth
is still anticipated through the end of the
2021 calendar year. Inflationary effects
are showing up in the cost of many taxable
products. Pent up demand for travel and
experiences, the return of commuters with
more costly fuel, and labor shortages having
upward pressure on prices may begin to
consume more disposable income and
tighten growth by the start of 2022.