HdL Sales Tax Report for CY2021 Q4 Saleswww.hdlcompanies.com | 888.861.0220
Q4 2020*
Q4 2021*
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
Fuel and
Service
Stations
Food
and
Drugs
Building
and
Construction
Business
and
Industry
TOP 25 PRODUCERSCITY OF ENCINITAS HIGHLIGHTS
Published by HdL Companies in Spring 2022
SALES TAX UPDATE
CITY OF ENCINITAS
4Q 2021 (OCTOBER - DECEMBER)
7 Eleven
76
Alila Marea Beach Resort Encinitas
Best Buy
BevMo
BMW of Encinitas
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
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Valero
Vons
Vuori
Walmart Supercenter
Encinitas’ receipts from October through
December were 22.4% above the fourth
sales period in 2020. Excluding reporting
aberrations, actual sales were up 8.9%.
This strong percentage gain signifies the
continued rebound from the pandemic
impacts of a year ago, especially during
the normal ‘holiday shopping period’. A
possible misallocation that exaggerated
the prior year results from general
consumer goods is temporarily hiding
the sensational holiday returns from
multiple retailers including sporting
goods, family apparel, home furnishings,
and specialty stores.
Strong demand and limited inventory for
vehicles caused elevated pricing for auto
buyers.
With minimal mask requirements,
continued pent up demand to eat out
and new eateries available, receipts from
casual and quick-service restaurants
were only surpassed by amounts
reported during the summer in the
City’s history. An increased number
of commuters brought about a lack
of supply having upward pressure on
gas prices resulted in stellar gains from
service stations.
However, one-time revenue experienced
in the comparison period pulled business-
industry lower, partially offsetting the
gains.
Net of aberrations, taxable sales for all of
San Diego County grew 14.7% over the
comparable time period; the Southern
California region was up 17.4%.
TOTAL:$ 4,478,826
8.9% 14.7% 15.6%
COUNTY STATE
ENCINITAS
4Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '21*
EncinitasBusiness Type Change Change ChangeCountyHdL State
53.8%52.6%56.7% 370.4 Service Stations
66.4%70.4%39.5% 313.2 Casual Dining
1.5%2.8%13.3% 189.4 Sporting Goods/Bike Stores
0.6%-0.4%-3.6% 179.7 Grocery Stores
12.1%14.9%7.1% 168.5 Quick-Service Restaurants
18.7%19.5%35.9% 119.1 Specialty Stores
6.5%2.5%6.1% 118.5 Home Furnishings
27.2%34.8%10.0% 110.6 Family Apparel
16.7%23.0%13.2% 108.9 Fast-Casual Restaurants
2.1%2.1%-3.0% 93.8 Convenience Stores/Liquor
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Calendar Year*
19%
Pools
16%
Restaurants
15%
Autos/Trans.
7%
Building
3%
Bus./Ind.
24%
Cons.Goods
7%
Food/Drug
9%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS4Q 2021
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months of
October through December were 15% higher
than the same quarter one year ago after
adjusting for accounting anomalies. A holiday
shopping quarter, the most consequential
sales period of the year, and the strong result
was a boon to local agencies across the State.
Consumers spent freely as the economy
continued its rebound from the pandemic
and as robust labor demand reduced
unemployment and drove up wages.
Brick and mortar retailers did exceptionally
well as many shoppers returned to physical
stores rather than shopping online as the
COVID crisis waned. This was especially
true for traditional department stores
that have long been among the weakest
categories in retail. Discount department
stores, particularly those selling gas, family
and women’s apparel and jewelry merchants
also experienced strong sales. Many retailers
are now generating revenue that is nearly
as much, or even higher, than pre-pandemic
levels.
Sales by new and used car dealers were also
much higher than a year ago. The inventory
shortage has resulted in higher prices that
have more than offset the decline in unit
volume in terms of revenue generation for
most dealerships. Restaurants and hotels
were only moderately lower than last
quarter, with both periods being the highest
in the State’s history. Increased menu prices
coupled with robust demand to dine out are
largely responsible for these gains. These are
impressive results for a sector that does not
yet include the positive impact that will occur
later this year as international travel steadily
increases at major airports. Conference
business, an important revenue component
for many hotels, is also still in the early stages
of recovery.
Building material suppliers and contractors
were steady as growing residential and
commercial property values boosted demand,
particularly in the Southern California,
Sacramento and San Joaquin Valley regions.
Although anticipated interest rate increases
by the Federal Reserve could dampen the
short-term outlook for this sector, industry
experts believe limited selling activity will
inspire increased upgrades and improvements
by existing owners. With demand remaining
tight and calls for more affordable housing
throughout the state, the long-term outlook
remains positive.
The fourth quarter, the final sales period of
calendar year 2021, exhibited a 20% rebound
in tax receipts compared to calendar year
2020. General consumer goods, restaurants,
fuel and auto-transportation industries were
the largest contributors to this improvement.
However, the future growth rate for statewide
sales tax revenue is expected to slow markedly.
Retail activity has now moved past the easy
year-over-year comparison quarters in 2021
versus the depths of the pandemic bottom the
year before. Additional headwinds going into
2022 include surging inflation, a dramatic jump
in the global price of crude oil due to Russia’s
war in Ukraine and corresponding monetary
tightening by the Federal Reserve. This is
expected to result in weakening consumer
sentiment and continued, but decelerating,
sales tax growth into 2023.