7/29/2019 Concord California Sales Tax Update 2013

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In Brief

Sales Tax Update

Top 25 producersIn Alphabetical Order

Receipts from rst quarter saleswere 7.2% above the same salesperiod one year earlier but onetimereporting aberrations skewed thedata. Excluding anomalies, actualsales grew 6.2%.

Cash receipts were up in all but twoof the seven major industry groupstracked by the city. New motor vehi-cle sales extended their recent post-recession run and caused most ofthe increase in the autos and trans-portation group. Temporary report-ing aberrations sharply inated thebuilding and construction compari-

son by cutting year-ago receipts inthe contractor and lumber/buildingmaterials groups. Strong sales offamily apparel, specialty goods andfurniture added to general consum-er proceeds. A combination of newbusiness openings and retroactiveaccounting adjustments lifted foodand drug totals. Business closeoutsheld the restaurant category to mod-est gains.

Fuel and service stations and busi-ness and industry results were down

but net of accounting adjustments,both exceeded year-ago totals.

Revenues from the citys voter-ap-proved Measure Q were up 8.5%compared to the comparison quar-ter. First quarter receipts for Mea-sure Q totaled $2,479,975, whichwas a $194,116 increase over theyear-ago period.

Net of payment adjustments, all ofContra Costa County increased 5%;statewide sales grew 6.5%.

Acura of Concord

Ashby Lumber

Audi of Concord

BMW/Mini Cooperof Concord

Chevron

Concord ChevroletConcord Honda

Concord Kia &Mitsubishi

Concord Nissan

Concord Toyota/Scion

Costco

Dolans ConcordLumber

Financial ServicesVehicle Trust

Frys Electronics

Future Ford LincolnHyundai

Home Depot

Lehmers Buick/Pontiac/GMC

Lexus of Concord

Lowes

Macys

Neillo Inniti

Orchard SupplyHardware

Safeway

Sears

Willow Pass Arco

Second Quarter Receipts for First Quarter Sales (January - March 2013)

Q12013

City of Concord

Concord

Published by HdL Companies in Summer 2013

$0

$200,000

$400,000

$600,000

$800,000

$1,000 ,000

$1,200 ,000

$1,400 ,000

$1,600 ,000

$1,800 ,000

SALES TAX BY MAJORBUSINESS GROUP

1st Quarter 2012

1st Quarter 2013

Food

andDrugs

Fuel and

ServiceStations

Restaurants

andHotels

Business

andIndustry

Building

andConstruction

General

ConsumerGoods

Autos

andTransportation

REVENUECOMPARISONFour Quarters Fiscal Year To Date

$26,590,186$24,426,062

12,0368,009

3,129,5863,072,844

$23,448,564$21,345,208

2012-132011-12

(610,652) (664,755)

$(6,481,358)$(5,953,853)

$23,815,410 $25,925,431

Cty/Cnty Share

Net Receipts

Point-of-Sale

County Pool

State Pool

Gross Receipts

Less Triple Flip*

Measure Q $9,531,752 $10,685,916

*Reimbursed from county compensation fund

7/29/2019 Concord California Sales Tax Update 2013

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N

OTES

Sales Tax UpdateQ1 2013

Bell Top 15 Business caTegories

City of Concord

Q1 '13*

Concord

CONCORDTOP 15BUSINESSTYPES

Business Type Change Change Change

County HdL State

448.6% 6.0%73.8%145.0Contractors

4.9% 5.1%5.0%249.2Department Stores

2.4% 5.1%3.8%399.3Discount Dept Stores CONFIDENTIAL

-0.2% -3.3%-1.5%184.5Electronics/Appliance Stores

13.9% 16.2%13.1%156.5Family Apparel

7.6% 24.7%8.8%151.3Grocery Stores Liquor

14.8% 4.7%9.9%122.1Home Furnishings

-16.0% 6.8%5.7%118.8Light Industrial/Printers19.8% 7.2%4.5%372.5Lumber/Building Materials

13.7% 9.5%11.5%1,364.3New Motor Vehicle Dealers

24.3% 13.9%21.3%117.7Plumbing/Electrical Supplies

-2.5% 6.5%8.2%163.4Restaurants Liquor

13.2% 6.0%9.4%199.6Restaurants No Alcohol

-29.2% -2.2%9.9%284.6Service Stations

11.5% 2.5%4.7%156.0Specialty Stores

-7.2%

7.2%

5.7%8.7%9.6%

-7.8%

7.2%

$5,523.1

756.5

$6,279.6

(157.0)

$6,122.6

Total All Accounts

County & State Pool Allocation

Gross Receipts

City/County Share

Net Receipts *In thousands

$0

$1,000

$2,000

$3,000

$4,000

SALES PERCAPITA

Concord

Q1

10

Q1

11

Q1

12

County California

California Overall

After adjusting for payment aberra-

tions, statewide sales tax receipts for

January through March sales were

6.5% higher than the same period in

2012.

Strong sales for apparel, department

stores and big box discounters lifted

general consumer goods and ac-

counted for 23% of the statewide

increase. Improvements in the hous-

ing sector pushed building and con-

struction sales up 8.6%. Continued

robust sales of new automobiles led

to a 9.3% increase over the compa-

rable quarter. Reduced consumptioncombined with lower gasoline prices

cut fuel and service station returns in

the rst quarter by 2.7%.

Energy Projects Boost Business

and Industry Gains

Taxes from construction of so-

lar, wind, biomass and geothermal

power projects accounted for 39%

of Californias businessto-business

sales this quarter and produced sig-nicant windfalls for a handful of

local agencies.

This temporary boost in revenues

came from the federal governments

goal of doubling the nations renew-

able energy production in three years

and from Californias SB 2X which

was signed in April of 2011 and calls

for 33% of all retail electricity sales

to be from renewable energy sources

by 2020. Joint federal and state fund-

ing efforts to meet these goals have

resulted in the initiation of more

than a dozen utility-scale solar ener-

gy projects and over 130 renewable

power plant projects in California.

Intermittent quarterly spikes in sales

and use tax receipts from projects

under construction or in the pipeline

are expected for another two years.

Decline in Fuel Consumption

Continues

According to the most recent data

from the State Board of Equaliza-

tion, Californias gasoline usage

fell 1.7% while diesel consumption

eased 0.4% in the fourth quarter of

2012 from 2011 levels. This contin-

ues a decline that began in 2005 and

which is almost twice the nation-

wide drop.

Historically, economic conditions

have been the primary driver in fuel

usage, however other factors are be-

coming increasingly prevalent. Na-

tionally, total vehicle miles traveledhave dropped eight years in a row as

aging drivers travel fewer miles and

the millennial generation, focused

on social networking technology,

is driving less than previous gen-

erations. Increased fuel efciency is

also at play with the average new car

achieving 16% more miles per gal-

lon than just ve years ago and some

commercial trucking eets shifting

to natural gas.

Until recently, price increases have

offset consumption declines. The

price gains were partly the result of

California reneries exporting theirnished product to emerging econo-

mies with higher demand and also by

periodic renery and transmission

interruptions in the states limited

production infrastructure.