HdL Sales Tax Report for CY2021 Q1 Saleswww.hdlcompanies.com | 888.861.0220
Q1 2020*
Q1 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
Autos
and
Transportation
Restaurants
and
Hotels
Food
and
Drugs
Fuel and
Service
Stations
Building
and
Construction
Business
and
Industry
TOP 25 PRODUCERSCITY OF ENCINITAS HIGHLIGHTS
Published by HdL Companies in Summer 2021
SALES TAX UPDATE
CITY OF ENCINITAS
1Q 2021 (JANUARY - MARCH)
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
Quick Shine Car Wash
Ralphs
REI
Scotty Cameron Gallery
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Trader Joes
Valero
Vons
Vuori
Walmart Supercenter
Encinitas’ receipts from January through
March were 32.7% above the first sales
period in 2020. Adjusting for reporting
aberrations, which included numerous
tax payment delays at the beginning of
the pandemic last year, actual sales were
up 15.6%, outperforming the State and
regional trend.
The rebound from last years’ pandemic
was strong among multiple categories,
but particularly for sporting goods,
bicycle, home furnishing stores and other
general consumer goods retailers. Most
of these businesses were fully open after
last year’s closures and consumers also
felt safer venturing out of their homes to
shop in these stores with the rapid roll-
out of effective vaccines.
Auto-transportation related receipts
were up 30%, outpacing the 20%
statewide trend. Allocations from the
San Diego use-tax pool also grew 24%.
Internet sales continue to surge, and this
is where much of the money from these
transactions is allocated.
The only major business category to post
a material decline was restaurants and
hotels, with fine dining and casual dining
eateries challenged by the indoor dining
restrictions in effect during the quarter.
Net of aberrations, taxable sales for all
of San Diego County grew 7.4% over the
comparable time period; the Southern
California region was up 9.0%.
TOTAL:$ 3,533,620
15.6% 7.4% 9.5%
COUNTY STATE
ENCINITAS
1Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '21*
EncinitasBusiness Type Change Change ChangeCountyHdL State
-4.0%-1.5%7.3% 272.3 Service Stations
-18.9%-18.3%-15.1% 211.3 Casual Dining
-6.2%-6.2%-5.9% 153.9 Grocery Stores
1.1%2.7%3.3% 149.6 Quick-Service Restaurants
33.3%45.8%63.6% 146.3 Sporting Goods/Bike Stores
19.3%17.1%31.6% 110.5 Home Furnishings
1.1%-1.9%1.9% 91.6 Fast-Casual Restaurants
11.1%12.6%33.0% 87.9 Convenience Stores/Liquor
9.0%-2.6%6.0% 72.2 Electronics/Appliance Stores
-1.1%-3.8%-7.7% 71.3 Auto Lease
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Quarter*
8%
Fuel
20%
Pools
14%
Restaurants
14%
Autos/Trans.
8%
Building
3%
Bus./Ind.
25%
Cons.Goods
8%
Food/Drug
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS1Q 2021
STATEWIDE RESULTS
The local one cent sales and use tax from
sales occurring January through March, was
9.5% higher than the same quarter one year
ago after factoring for accounting anomalies
and back payments from previous quarters.
The Shelter-In-Place directive began one
year ago which had the impact of immediate
store and restaurant closures combined
with remote/work from home options for
employees which significantly reduced
commuting traffic and fuel sales. When
comparing to current period data, percentage
gains are more dramatic. Furthermore,
this pandemic dynamic combined with the
Governor’s first Executive Order of last
spring allowing for deferral of sales tax
remittances explained why non-adjusted
cash results were actually up 33%.
These initial recovery gains were not the
same everywhere. Inland regions like
Sacramento, San Joaquin Valley, Sierras,
Far North and the Inland Empire area
of Southern California performed much
stronger than the Bay Area, Central Coast
and metro areas of Southern California.
Within the results, solid performance by
the auto-transportation and building-
construction industries really helped push
receipts higher. Weak inventories and
scarcity for products increased the taxable
price of vehicles (new & used), RV’s, boats
and lumber which appeared to be a major
driving force for these improved returns.
Even though e-commerce sales activity
continued to rise, brick and mortar general
consumer retailers also showed solid
improvement of 11% statewide.
An expected change occurred this quarter
as a portion of use tax dollars previously
distributed through the countywide pools
was redirected to specific local jurisdictions.
Changes in business structure required a
taxpayer to determine where merchandise
was inventoried at the time orders were
made. Therefore, rather than apportion
sales to the county pool representing where
the merchandise was shipped, goods held in
California facilities required allocations be
made to the agency where the warehouse
resides. With this modification, the business
and industry category jumped 18% inclusive
of steady gains by fulfillment centers, medical-
biotech and garden-agricultural suppliers.
Even after the change noted, county pools
surged 18% which demonstrated consumers
continued desire to make purchases online.
Although indoor dining was available in
many counties, the recovery for restaurants
and hotels still lagged other major
categories. Similarly, while commuters and
travelers slowly began returning to the road,
the rebound for gas stations and jet fuel is
trailing as well. Both sectors are expected to
see revenues climb in the coming quarters as
commuters and summer tourism heats up.
Looking ahead, sustained growth is
anticipated through the end of the 2021
calendar year. As a mild head wind, pent
up demand for travel and experiences may
begin shifting consumer dollars away from
taxable goods; this behavior modification
could have a positive outcome for tourist
areas within the state.