HdL Sales Tax Report for CY2022 Q4 Saleswww.hdlcompanies.com | 888.861.0220
Q4 2021*
Q4 2022*
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 2023
SALES TAX UPDATE
CITY OF ENCINITAS
4Q 2022 (OCTOBER - DECEMBER)
7 Eleven
76
Alila Marea Beach Resort Encinitas
Best Buy
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 Car Wash At Encinitas Ranch
Target
TJ Maxx
Total Wine Spirits Beer & More
Traders Joe
Valero
Vons
Vuori
Walmart Supercenter
Encinitas’ gross receipts from October
through December were 6.6% below
the fourth sales period in 2021. After
adjusting for reporting modifications,
net revenues were essentially even at
0.5% higher than a year ago. Results
were mixed as economic pressures may
have influenced some buying decisions.
While ending in positive territory, general
consumer goods showed some signs
of slowing during the busy shopping
season; however, family apparel, jewelry,
and specialty stores posted quarterly
gains. The autos-transportation group
jumped up 9%, assisted by auto repair
sales.
As in previous quarters, residents and
visitors enjoyed the experience of casual
and quick-service dining – even with
higher menu prices. A new business
in the convenience store sector lifted
overall food-drugs receipts. Garden-
agricultural related sales helped support
the business-industry group; and activity
in the building-construction group
boosted revenues.
Conversely, while most service station
revenues increased, overall results
dipped due to comparison to a high
allocation a year ago. The countywide
use tax pool revenues shrank due to
lower ecommerce allocations and third
party auto sales, as well as a large
payment last year – dropping the City’s
allocation 14.8%.
Net of adjustments, taxable sales for all
of San Diego County grew 6.7% over the
comparable time period; the Southern
California region was up 5.1%.
TOTAL:$ 4,585,090
0.5% 6.7% 4.7%
COUNTY STATE
ENCINITAS
4Q2022
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '22*
EncinitasBusiness Type Change Change ChangeCountyHdL State
8.2%9.7%12.6% 367.3 Casual Dining
7.5%5.2%-7.3% 348.7 Service Stations
-4.3%-5.8%-2.6% 185.8 Sporting Goods/Bike Stores
5.7%5.1%1.4% 179.5 Quick-Service Restaurants
6.2%5.8%-1.4% 178.4 Grocery Stores
-0.9%3.1%0.9% 143.1 Family Apparel
0.9%7.1%44.4% 132.4 Convenience Stores/Liquor
1.9%1.7%3.8% 124.0 Specialty Stores
-6.9%-1.2%-3.1% 120.7 Home Furnishings
6.6%8.1%0.2% 107.8 Fast-Casual Restaurants
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Encinitas This Calendar Year*
18%
Pools
17%
Restaurants
16%
Autos/Trans.
7%
Building
4%
Bus./Ind.
22%
Cons.Goods
7%
Food/Drug
9%
Fuel
*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF ENCINITAS4Q 2022
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months
of October through December were 4.7%
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,
experienced solid results which lifted
revenue to local agencies across the State.
Overall, general consumer goods
growth was up a meager 1.8%, in large
part from merchants also selling gas
as prices remained elevated over last
year. Otherwise, many brick and mortar
retailers experienced mixed results as the
phenomenal prior year activity made for an
extremely difficult comparison. This was
especially true for jewelry stores receipts
which had soared tremendously after the
pandemic as consumers diversified readily
available cash into other assets.
Commuters and seasonal travelers were
again burdened with gas prices above $5
per gallon in most of the State, leaving fuel-
service stations 10% higher than a year
ago. However, this trend did not distract
from spending at local restaurants and
hotels. Increased menu prices and return-
to-office workplaces enhanced gains, with
the Bay Area experiencing it’s greatest
amount of post-pandemic rebound.
Although inventory shortages negatively
impacted unit sales and leasing activity
throughout 2022, year-end returns by new
car dealers, especially high-end luxury and
electric/hybrid brands, sustained auto-
transportation sector gains. In contrast,
rising interest rates and higher gas
prices pulled trailer-RV revenues lower.
Steady housing demand and pend up
construction projects delayed by supply
chain interruptions have contractors
contributing the majority of growth
within the building-construction sector.
With rising interest rates tempering selling
activity, property owners are still likely to
maintain home improvement spending.
Use taxes remitted via the countywide
pools rose a scant 0.3%. While national
ecommerce spending behaviors climbed
upward again, expansion of more in-state
fulfilment centers plus retailers using
existing locations to deliver goods tied
to online orders shifted taxes away from
pools. The offsetting effect was these
dollars being directed to local agency’s
coffers where the goods resided. This
evolving trend is anticipated to persistently
weaken taxes coming from the pools in the
near term.
Looking back, calendar year 2022 exhibited
a 9.5% surge in tax receipts compared
to 2021. Each of the eight major tax
categories all reported greater returns.
Most influential was inflation that drove
up prices on everything from normal daily
purchases to vehicles. Secondarily, all-time
peak global crude oil costs had fuel seller’s
payments skyrocketing.
Heading into 2023, additional interest
rate hikes along with consumer sentiment
waning about the economy foretells
minimal change coming from California’s
taxable sales in the months ahead.