HdL Sales Tax Report for CY2022 Q1 Saleswww.hdlcompanies.com | 888.861.0220
Q1 2021*
Q1 2022*
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 Summer 2022
SALES TAX UPDATE
CITY OF ENCINITAS
1Q 2022 (JANUARY - MARCH)
7 Eleven
76
Alila Marea Beach Resort Encinitas
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
IFE Marketing
Pacific Coast Grill
Quick Shine Car Wash
REI
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Valero
Vons
Walmart Supercenter
Encinitas’ receipts from January through
March were 20% above the first sales
period in 2021. Adjustments for delayed
payments, audit and other reporting
modifications resulted in actual sales
that were up 13.4%. Overall place of
sale collections soared almost 14%
compared to a year ago. The economy
demonstrated strength and resiliency
during the first three months of the year.
The City’s largest sales tax group, general
consumer goods, is the only group that
posted a decline in overall sales. While
most business types in this tax group
demonstrated growth, an adjustment
by a single taxpayer skewed revenues
down 7.8% for the quarter. However,
a 12% increase in allocations from the
countywide use tax pool contributed to
the overall positive quarterly outcome
as the pools remain a solid source of
local revenue, boosted by taxes on
e-commerce.
Restaurants, especially casual dining,
experienced another sensational sales
period as patrons seemed unfazed by
more expensive menus and enjoyed the
experience of dining out – which may
have contributed to a dip in convenience/
liquor store sales. Autos-transportation
continued to boast increased revenues;
and with the global cost of crude oil
resulting in higher local gas prices and
more commuters on the road, receipts
from service stations skyrocketed 47%.
Business-industry results were lifted by
a new taxpayer payment.
Net of adjustments, taxable sales for all of
San Diego County grew 20.0% over the
comparable time period; the Southern
California region was up 19.2%.
TOTAL:$ 4,082,465
13.4% 20.0% 17.1%
COUNTY STATE
ENCINITAS
1Q2022
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '22*
EncinitasBusiness Type Change Change ChangeCountyHdL State
43.3%37.2%42.4% 385.9 Service Stations
55.8%65.0%47.0% 322.5 Casual Dining
7.8%8.9%5.5% 164.1 Quick-Service Restaurants
3.2%3.0%1.0% 156.7 Grocery Stores
-5.1%-7.3%-2.8% 150.1 Sporting Goods/Bike Stores
0.9%3.0%14.1% 130.6 Home Furnishings
11.3%18.2%7.8% 106.8 Fast-Casual Restaurants
11.2%15.4%17.2% 84.6 Specialty Stores
9.4%14.6%5.2% 77.8 Family Apparel
12.7%34.1%1.0% 74.0 Electronics/Appliance Stores
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Quarter*
20%
Pools
16%
Restaurants
16%
Autos/Trans.
7%
Building
4%
Bus./Ind.
21%
Cons.Goods
7%
Food/Drug
10%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS1Q 2022
STATEWIDE RESULTS
California’s local one-cent sales and use tax
for sales occurring January through March
was 17% higher than the same quarter one
year ago, after adjusting for accounting
anomalies and onetime payments from
previous quarters. By all accounts, the
California retail economy continues roaring
along. Even with instability in the stock
market, the crisis in Ukraine pushing up the
global price of crude oil and the U.S. Federal
Reserve Board beginning to tackle inflation
with a series of rate increases, consumer
spending continued at a strong pace.
The invasion of Ukraine by Russian
military forces on February 24 had an
immediate upward impact on the global
price of crude oil due to fears of supply
shortages. Subsequently this has caused a
dramatic jump to California consumer gas
and diesel prices at a time when many in
the workforce were commuting back into
offices, also contributing to an overall
increase in consumption. As expected, fuel
and service station receipts increased 47%
over last year and show no signs of pulling
back with summer travel right around the
corner.
Sales of new and used vehicles continue
to be robust causing the autos and
transportation sector to jump 15% for
the period. Inventory shortages by some
dealers may have caused buyers to
experience a Fear Of Missing Out (FOMO)
and pay elevated prices while interest rates
remained lower. Automotive brands that
have committed to full electric or hybrid
models are attractive with consumers,
especially given the sudden rise in fuel
prices.
Post-holiday retail sales of general
consumer goods remained solid, improving
10%. Prior supply chain concerns have
dissipated, port operations are returning
to normal and headwinds from inflation
and higher cost goods haven’t yet slowed
consumer demand. The stellar returns
were largely driven by discount department
stores, especially those selling gas.
These results mark the fourth full quarter
in a row that restaurant and hotel receipts
have increased. While higher menu
prices have contributed, steady demand
by patrons to dine out is also propelling
the gains. Furthermore, theme parks and
entertainment venues throughout the state
are busy. With the summer tourism and
travel season approaching, the industry
is positioned to maintain post-pandemic
growth and remain positive through 2022.
Use taxes generated by online sales and
purchases from out-of-sate vendors
allocated via the county pools, heartily
surpassed expectations, gaining 13% over
the comparison period. Shoppers bought
a range of merchandise and spending by
businesses on capital equipment remained
sensational.
The first quarter sales period contributed
to an already strong 2021-22 fiscal year for
most municipalities statewide. However,
continued inflationary pressure, soaring
interest rates and record gas prices may
soften growth going into 2022-23.