The URL can be used to link to this page

Home My WebLink About2020-4www.hdlcompanies.com | 888.861.0220 Q4 2019* Q4 2020* Legend 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 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 Business and Industry Building and Construction Restaurants and Hotels Food and Drugs Fuel and Service Stations TOP 25PRODUCERSCITYOFSANLUISOBISPOHIGHLIGHTS Published by HdL Companies in Spring 2021 Alfano Motorcars Mercedes Benz Chevrolet Apple Best Buy Coast Nissan Cole Chrysler Dodge Jeep Cole Mazda Conserv Fuel Consolidated Electrical Distributors Costco Ferguson Enterprises Hayward Lumber Home Depot JB Dewar Exxon Distributor Megans Organic Market Perry Ford Lincoln Volkswagen Rancho Grande Motors Buick Gmc Hyundai Subaru Rec Solar Ross Smith Volvo Sunset Honda Tackle Warehouse Target Toyota San Luis Obispo Union Asphalt United Rentals Vons SALES TAX UPDATE CITY OF SAN LUIS OBISPO 4Q 2020 (OCTOBER - DECEMBER) San Luis Obispo’s receipts from October through December were 6.8% above the fourth sales period in 2019. However, tax payment deferrals offered by the State has temporarily delayed actual receipts. Once estimated payments are incorporated into the data and reporting aberrations excluded, actual sales were up 13.7%. While this was the third quarter of economic impacts due to the pandemic, the City experienced a solid growth period from new auto dealers, consistent with the county and statewide trend. The current stable housing market and increased equity available contributed to a rise in building-construction merchant returns. Gains from the countywide use tax pool continues to be a bright spot. With more online purchases being made and a greater number of out-of-state retailers collecting and remitting local sales tax, the City’s share grew 60% compared to a year ago. As expected, restaurants that usually depend on indoor services like casual dining and quick service establishments continue to be hindered, while reduced commuter frequency and lower gas prices held service stations lower. Also, limited capacity hurt general consumer results during the normal holiday shopping period. TOTAL: 3.4% 2,164,238 Measure G TOTAL:$ 5,568,459 13.7% 6.4%-2.0% COUNTY STATE SAN LUIS OBISPO 4Q2020 TOP NON-CONFIDENTIAL BUSINESS TYPES Q4 '20* San LuisObispoBusinessType Change ChangeChangeCountyHdLState 7.3%8.9%18.0% 817.2NewMotorVehicleDealers 17.7%20.5%8.8% 249.5BuildingMaterials 20.3%28.2%20.3% 197.7SportingGoods/Bike Stores 39.4%-26.5%-39.3% 183.6CasualDining 31.2%-27.9%-30.1% 169.0ServiceStations 25.0%-14.3%-25.9% 134.0Electronics/Appliance Stores 5.2%9.0%2.1% 133.7GroceryStores 2.3%-12.2%32.1% 117.0Contractors 16.2%-5.0%-10.6% 115.5FamilyApparel 1.1%-5.8%4.7% 111.3HomeFurnishings Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars REVENUE BY BUSINESS GROUP San Luis Obispo This Quarter* 8% Others 23% Pools 6% Restaurants 18% Autos/Trans. 9% Building 11% Bus./Ind. 24% Cons.Goods ADJUSTEDFORECONOMICDATA SALES TAXUPDATECITYOFSANLUISOBISPO4Q2020 STATEWIDE RESULTS The local one cent sales and use tax from sales occurring October through December, the holiday shopping season, was 1.9% lower than the same quarter one year ago after adjusting for accounting anomalies and back payments from previous periods. Lower receipts were primarily concentrated in the Bay Area and coastal southern regions while much of inland California, including the San Joaquin Valley, Inland Empire, and northern regions, exhibited solid gains. As expected, the larger place of sale categories which have been negatively impacted throughout the pandemic continue to be brick and mortar general consumer goods retailers like family apparel, department, and electronics/ appliance stores. With limited to zero allowed indoor dining (depending on a County’s Covid-19 tier assignment), restaurants and hotels suffered the largest losses especially in communities that strongly rely on tourism. Although the workforce has slowly begun to return to physical office environments, fuel and service stations revenues lagged the prior year performance. It does not appear that Governor Newsom’s second ‘shelter at home’ directive, initiated by the increase in Covid-19 cases had an impact on overall results. While some merchants chose to utilize the Governor’s executive order allowing for a 90-day deferral of sales tax remittance, it was substantially less than the similar opportunity companies utilized during the 1st and 2nd quarters of 2020. The outstanding payments for most California cities will be remitted before the end of the 2020-21 fiscal year. On the bright side, as consumer confidence stabilized post the national presidential election, customers were motivated to comfortably spend on high-end luxury automobiles, boats- motorcycles, RVs, and sporting goods/ equipment. The building-construction sector, with 1) increased price of goods – like lumber, 2) continued home improvement projects, and 3) advantageous fall/ winter weather conditions saw strong gains that remained consistent throughout the calendar year. Exponential growth from countywide use tax pools further helped offset the declines. Greater online shopping signifying a permanent shift of consumer habits to this more convenient experience was inevitable. On the horizon, mass deployment of the Covid-19 vaccine will help a greater number of businesses, restaurants and theme parks to reach reopen status. Recent approval of the American Rescue Plan Act of 2021 will further support greater consumer spending, albeit in targeted segments. Pent up demand for summer outdoor experiences and travel is likely and thereby household spending is temporarily reverted away from taxable goods when compared to recent activity.