HdL Sales Tax Report for CY2020 Q4 Saleswww.hdlcompanies.com | 888.861.0220
Q4 2019*
Q4 2020*
Legend
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
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
Building
and
Construction
Fuel and
Service
Stations
Business
and
Industry
TOP 25 PRODUCERSCITY OF ENCINITAS HIGHLIGHTS
Published by HdL Companies in Spring 2021
SALES TAX UPDATE
CITY OF ENCINITAS
4Q 2020 (OCTOBER - DECEMBER)
7 Eleven
76
Best Buy
BevMo
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
REI
Ross
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Trader Joes
Valero
Vons
Vuori
Walmart Supercenter
Encinitas’ receipts from October through
December were 2.4% below the fourth
sales period in 2019. However, tax
payment deferrals offered by the State
and a large retroactive correction
has temporarily impacted actual
receipts. Once estimated payments are
incorporated into the data and reporting
aberrations excluded, actual sales were
up 6.1%.
While this was the third quarter of
economic impacts due to the pandemic,
the City experienced another solid
growth during the holiday shopping
period from general consumer retailers,
including sporting good stores. Also,
similar to the state and county trends,
new auto sales and building-construction
activity were strong as buyers take
advantage of low finance conditions and
improved equity available.
Gains from the countywide use tax pool
continues to be a bright spot. With
more online purchases being made and a
greater number of out-of-state retailers
collecting and remitting local sales tax,
the City’s share jumped 40% compared
to a year ago.
As expected, with reduced commuter
frequency and lower gas prices, gas
stations remain heavily impacted,
while restaurants that usually depend
on indoor services like casual dining
establishments continue to be hindered.
Net of aberrations, taxable sales for all
of San Diego County declined 1.9%
over the comparable time period; the
Southern California region was down
2.7%.
TOTAL:$ 3,968,347
6.1%-1.9%-2.0%
COUNTY STATE
ENCINITAS
4Q2020
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '20*
EncinitasBusiness Type Change Change ChangeCountyHdL State
-31.2%-32.2%-29.0% 231.5 Service Stations
-39.4%-38.6%-34.7% 194.3 Casual Dining
5.2%7.3%9.2% 186.4 Grocery Stores
20.3%27.9%19.8% 166.7 Sporting Goods/Bike Stores
-8.7%-9.0%-3.4% 155.1 Quick-Service Restaurants
1.1%1.1%0.3% 102.3 Home Furnishings
-16.2%-21.1%-5.7% 97.9 Family Apparel
-12.0%-14.7%-10.2% 91.2 Fast-Casual Restaurants
-2.0%-3.7%8.7% 83.2 Convenience Stores/Liquor
-25.0%-27.0%-24.4% 81.0 Electronics/Appliance Stores
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Quarter*
24%
Pools
12%
Restaurants
13%
Autos/Trans.
7%
Building
3%
Bus./Ind.
27%
Cons.Goods
8%
Food/Drug
6%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS4Q 2020
STATEWIDE RESULTS
The local one cent sales and use tax
from sales occurring October through
December, the holiday shopping
season, was 1.9% lower than the same
quarter one year ago after adjusting
for accounting anomalies and back
payments from previous periods. Lower
receipts were primarily concentrated
in the Bay Area and coastal southern
regions while much of inland California,
including the San Joaquin Valley, Inland
Empire, and northern regions, exhibited
solid gains.
As expected, the larger place of sale
categories which have been negatively
impacted throughout the pandemic
continue to be brick and mortar general
consumer goods retailers like family
apparel, department, and electronics/
appliance stores. With limited to zero
allowed indoor dining (depending on
a County’s Covid-19 tier assignment),
restaurants and hotels suffered the
largest losses especially in communities
that strongly rely on tourism. Although
the workforce has slowly begun to
return to physical office environments,
fuel and service stations revenues
lagged the prior year performance.
It does not appear that Governor
Newsom’s second ‘shelter at home’
directive, initiated by the increase in
Covid-19 cases had an impact on overall
results. While some merchants chose to
utilize the Governor’s executive order
allowing for a 90-day deferral of sales
tax remittance, it was substantially less
than the similar opportunity companies
utilized during the 1st and 2nd quarters
of 2020. The outstanding payments for
most California cities will be remitted
before the end of the 2020-21 fiscal
year.
On the bright side, as consumer
confidence stabilized post the national
presidential election, customers were
motivated to comfortably spend on
high-end luxury automobiles, boats-
motorcycles, RVs, and sporting goods/
equipment.
The building-construction sector,
with 1) increased price of goods – like
lumber, 2) continued home improvement
projects, and 3) advantageous fall/
winter weather conditions saw
strong gains that remained consistent
throughout the calendar year.
Exponential growth from countywide
use tax pools further helped offset
the declines. Greater online shopping
signifying a permanent shift of consumer
habits to this more convenient experience
was inevitable.
On the horizon, mass deployment of
the Covid-19 vaccine will help a greater
number of businesses, restaurants and
theme parks to reach reopen status.
Recent approval of the American Rescue
Plan Act of 2021 will further support
greater consumer spending, albeit in
targeted segments. Pent up demand for
summer outdoor experiences and travel
is likely and thereby household spending
is temporarily reverted away from taxable
goods when compared to recent activity.