HdL Sales Tax Report for CY2022 Q2 Saleswww.hdlcompanies.com | 888.861.0220
Q2 2021*
Q2 2022*
Legend
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity
General
Consumer
Goods
County
and State
Pools
Restaurants
and
Hotels
Autos
and
Transportation
Fuel and
Service
Stations
Building
and
Construction
Food
and
Drugs
Business
and
Industry
TOP 25 PRODUCERSCITY OF ENCINITAS HIGHLIGHTS
Published by HdL Companies in Fall 2022
SALES TAX UPDATE
CITY OF ENCINITAS
2Q 2022 (APRIL - JUNE)
7 Eleven
76
Alila Marea Beach Resort Encinitas
Best Buy
BMW of Encinitas
Chevron
Dicks Sporting Goods
Encinitas Ford
Financial Services Vehicle Trust
Hansen Surfboards
Herman Cook Volkswagen
Home Depot
Home Goods
IFE Marketing
Pacific Coast Grill
Quick Shine Car Wash
REI
Shell
Shell Car Wash At Encinitas Ranch
Target
TJ Maxx
Valero
Vons
Vuori
Walmart Supercenter
Encinitas’ receipts from April through
June were 2.0% above the second
sales period in 2021, though this was
artificially diminished by a delayed
payment from an auto-transportation
vendor. Excluding this and other
reporting aberrations, actual sales were
up 8.1%.
The largest factor in this improvement
was a 25% surge in receipts from local
gasoline stations on sky-high fuel prices.
Casual dining eateries and other
businesses in the restaurant and hotel
category continued to rebound from the
pandemic. A payment error may have
boosted business-industrial returns,
however.
Allocations from the countywide use-
tax pool were up 9%, slightly less than
the 13% local trend. This funding is
allocated among regional agencies
based on proportional cash results,
which were slightly below average for
Encinitas this quarter, largely due to
the delayed payment from the auto
and transportation vendor previously
discussed.
Net of aberrations, taxable sales for all of
San Diego County grew 13.5% over the
comparable time period; the Southern
California region was up 11.1%.
TOTAL:$ 4,456,502
8.1% 13.5% 10.1%
COUNTY STATE
ENCINITAS
2Q2022
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '22*
EncinitasBusiness Type Change Change ChangeCountyHdL State
36.4%28.2%25.0% 470.6 Service Stations
17.3%17.6%7.9% 364.2 Casual Dining
5.2%10.0%5.7% 186.1 Quick-Service Restaurants
-7.4%-6.3%-3.1% 170.8 Sporting Goods/Bike Stores
5.3%5.2%1.6% 168.2 Grocery Stores
-4.6%1.0%-5.3% 117.1 Home Furnishings
0.6%10.4%-5.4% 115.3 Family Apparel
7.8%13.5%-2.0% 112.4 Fast-Casual Restaurants
4.2%7.2%4.7% 111.6 Specialty Stores
-0.3%2.0%-2.9% 81.7 Convenience Stores/Liquor
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Fiscal Year*
19%
Pools
16%
Restaurants
15%
Autos/Trans.
7%
Building
4%
Bus./Ind.
22%
Cons.Goods
7%
Food/Drug
10%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS2Q 2022
STATEWIDE RESULTS
Local one cent sales and use tax for
sales occurring April through June was
10% higher than the same quarter one
year ago after adjusting for accounting
anomalies and back payments from
previous quarters. These returns mark
the sixth consecutive quarter of double-
digit growth since the pandemic periods
in 2020, with the July-June 2022 fiscal
year up 15%.
Commuters returning to offices
combined with the Russia-Ukraine
conflict continuing to put upward
pressure on oil prices and left
Californians facing the highest average
price per gallon on record resulting in
fuel and service station receipts 42%
higher than last year. While statewide
fuel consumption still trails 2019 levels,
local gas prices are expected to remain
high until after the summer blend period.
Led by consumer’s desire to dine out,
a steady rise in tourism and business
travel, higher menu prices and great
weather, the restaurant sector continues
to flourish. Theme parks, entertainment
venues and hotels showed the strongest
growth with casual dining establishments
remaining solid, a trend likely to remain
through 2022.
The automobile sector experienced
modest gains for new car dealers and
rental car vendors, however sales of
used autos and leasing activity has
begun to cool. Brands prioritizing full
electric and hybrid models still appear to
be the most attractive with consumers,
however increased financing rates may
cause even their activity to dampen.
Tight inventories that contributed to
dramatic price increases over the last
18 months are also showing signs of
loosening as newer models are released
in greater numbers.
General consumer goods categories saw
steady returns largely propped up by
retailers also selling fuel. In comparison
with the prior year when consumers were
buying merchandise at a record pace, the
current returns from apparel and jewelry
stores grew moderately with home
furnishings showing a slight decrease.
With new housing starts accelerating
and residential and commercial property
values rising, construction contractors
remain busy. Lumber prices have
softened from prior year highs leaving
material suppliers with modest gains,
however electrical, plumbing and energy
suppliers boosted building sector
results. Increased investment in capital
equipment remains an important area
of growth for county pool allocations,
especially as online spending for general
consumer goods begins to flatten as
consumers return to in-store shopping.
Overall, higher priced goods through
periods of consistent demand have
led to economic inflation. The Federal
Reserve Board’s recent actions to curb
inflation are anticipated to put downward
pressure on auto sales, building materials
and financed general consumer goods,
resulting in slower growth by year end
and into 2023.