Loading...
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.