HdL Sales Tax Report for CY2021 Q3 Saleswww.hdlcompanies.com | 888.861.0220
Q3 2020*
Q3 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 Winter 2022
SALES TAX UPDATE
CITY OF ENCINITAS
3Q 2021 (JULY - SEPTEMBER)
7 Eleven
76
Alila Marea Beach Resort
Best Buy
BMW of Encinitas
Cardiff Seaside Market
Chevron
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
REI
Scotty Cameron Gallery
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Valero
Vons
Walmart Supercenter
Encinitas’ receipts from July through
September were 10.0% above the third
sales period in 2020. Excluding reporting
aberrations, actual sales were up 12.5%.
Casual dining and other hotel and
restaurant related receipts increased
35% compared to last year, a time
when many eateries were closed for
indoor seating. This year, many newly
vaccinated consumers were eager to
leave the house, travel and dine out
again. New business openings further
lifted the category.
Tax proceeds from local service stations
surged 59% as the price of gasoline
surged above $4.50 per gallon and as
consumers drove more than they did
last year during the lockdown. Auto and
transportation related revenue was also
strong.
Sporting goods, specialty stores and
other general consumer goods retailers
benefited by consumers spending more
of their paycheck on tangible goods this
year, rather than on services, compared
to before the Covid-19 crisis. A recent
store opening was also positive, but a
payment error suppressed the overall
rate of growth.
Allocations from the countywide use tax
pool were lower than normal, reduced
in part by a recent taxpayer reporting
change.
Net of aberrations, taxable sales for all of
San Diego County grew 18.2% over the
comparable time period; the Southern
California region was up 19.9%.
TOTAL:$ 4,265,687
12.5% 18.2% 18.2%
COUNTY STATE
ENCINITAS
3Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '21*
EncinitasBusiness Type Change Change ChangeCountyHdL State
53.4%54.8%59.4% 383.3 Service Stations
68.4%66.9%49.4% 343.2 Casual Dining
2.2%4.7%25.9% 193.8 Sporting Goods/Bike Stores
13.5%16.4%7.1% 178.8 Quick-Service Restaurants
-0.2%-0.3%-5.5% 164.2 Grocery Stores
11.0%5.7%14.5% 127.2 Home Furnishings
18.8%23.0%16.4% 118.7 Fast-Casual Restaurants
21.4%18.2%38.0% 97.1 Specialty Stores
39.0%33.9%30.2% 89.0 Family Apparel
-0.2%-1.7%-7.3% 86.7 Convenience Stores/Liquor
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
$0
$2,000
$4,000
$6,000
$8,000
Encinitas
Q3
18
Q3
21
Q3
19
Q3
20
County California
SALES PER CAPITA*
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS3Q 2021
STATEWIDE RESULTS
Local one cent sales and use tax receipts
for sales occurring July through September
were 18% higher than the same quarter
one year ago after adjusting for accounting
anomalies and back payments from
previous quarters. These aberrations had
been much greater than normal in the last
two years as the Governor’s Executive
Orders allowed businesses to defer some
sales tax payments as a supportive measure
during the pandemic. This program has
now expired, and merchant remittances are
more consistent, making cash receipts more
reflective of underlying economic activity.
The prior year comparison quarter was the
start of the pandemic recovery, and the
strong growth enjoyed since continued
with the recent results.
Surprisingly, one of the stronger sectors
has been restaurants and hotels. Originally
forecasted to take an extended amount
of time to recover, statewide sales tax
generated during the summer months
exceeded amounts from pre-pandemic
2019. Even with the availability of indoor
and outdoor dining, pent up demand
resulted in long wait times to enjoy local
culinary experiences. When combined
with increasing restaurant tabs as the
cost of food and staff wages surge, sales
tax remittances are expected to continue
growing. Additionally, while the industry
awaits the return of foreign tourism in
metropolitan areas, strong domestic travel
has helped varied regions around the state
especially Southern California and the
Central Coast.
Receipts from general consumer goods
marked a steady recovery, led by apparel
retailers, jewelry, electronic/appliance and
specialty outlets. Discount department
stores, especially those selling gas, helped
exemplify the strength of brick-and-mortar
merchants. Gains from the countywide use
tax pools however, slowed to 2% compared
to the high-water mark last year, which
had been boosted by new tax collecting
requirements imposed under AB 147 for
online retailers. All things considered, when
combined with positive economic trends,
these are a welcome sign leading up to the
holiday shopping period.
Although car dealers had expressed
concerns about inventory shortages due
to supply chain disruptions and computer
chip shortages earlier in the year, the sale
of new and used vehicles posted solid gains
regardless. Higher property values and good
weather contributed to strong building
materials and contractor returns. As
commuting workers and travelers returned
to the road with increased gas prices, fuel
and service stations also experienced a
dramatic recovery.
Overall growth is expected to continue
through the end of the 2021 calendar year.
Possible headwinds into 2022 include:
pent up demand for travel and experiences
shifting spending away from taxable goods;
higher prices for fuel, merchandise and
services displacing more of consumer’s
disposable income; and expected interest
rate hikes resulting in more costly financing
for automobiles, homes, and consumer
loans.