The URL can be used to link to this page

Home My WebLink AboutHdL's City of Atascadero Sales Tax Update Q2 2024www.hdlcompanies.com | 888.861.0220 Q2 2023* Q2 2024* Legend $0 $40,000 $80,000 $120,000 $160,000 $200,000 $240,000 $280,000 SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity Fuel andServiceStations Countyand StatePools BuildingandConstruction RestaurantsandHotels AutosandTransportation BusinessandIndustry FoodandDrugs GeneralConsumerGoods TOP 25 PRODUCERSCITY OF ATASCADERO HIGHLIGHTS Published by HdL Companies in Fall 2024 7 Eleven 777 Auction Company Arco AM PM Atascadero 76 Atascadero Chevron Atascadero Shell Circle K Union 76 Dealers Choice El Camino Building Supply Fastrip Gasoline Food 4 Less Hitching Post Shell Home Depot In N Out Burger M & M Smoke Shop Marv’s Station McDonald’s Miners Ace Hardware Shell Smart & Final Taco Bell Trailer Hitch Tyndall Tile Inc Valley Speed & Marine Vons SALES TAX UPDATECITY OF ATASCADERO 2Q 2024 (APRIL - JUNE) Atascadero’s Bradley-Burns sales tax receipts from April to June were 2.4% lower than the same period in 2023. This decline was mainly due to several taxpayer payment corrections related to previous sales periods. When excluding these anomalies, actual sales increased by 1.2%. A significant factor in this improvement was the growth in business-industrial returns. Additionally, the opening of a new gasoline station and a popular fast- casual restaurant in the past year contributed positively. Allocations from the countywide use-tax pool also benefited from expenditures linked to a regional infrastructure project. On the downside, there was a drop in tax revenue from used car sales, following last year’s inflated allocations resulting from a taxpayer reporting error. Measure’s D-20 and F-14, the City’s voter-approved district taxes, showed similar performances to the Bradley- Burns sales tax returns. Excluding anomalies, taxable sales for all of San Luis Obispo County fell by 0.5% over the comparable period, while the Central Coast region saw a 0.4% increase. TOTAL: 1.6% $823,178 Measure F-14 TOTAL: 1.5% $1,644,993 Measure D-20 TOTAL:$ 1,296,058 1.2%-0.5%-0.7% COUNTY STATE ATASCADERO 2Q2024 TOP NON-CONFIDENTIAL BUSINESS TYPES Q2 '24*AtascaderoBusiness Type Change Change ChangeCountyHdL State 2.3%2.2%4.5% 248.6 Service Stations -3.1%-7.6%-2.5% 187.4 Building Materials 1.1%-2.5%6.1% 85.8 Quick-Service Restaurants 0.7%-3.4%-1.7% 85.1 Casual Dining 1.6%0.5%-0.7% 67.5 Grocery Stores -3.3%-0.5%-6.0% 27.7 Automotive Supply Stores -7.2%-36.6%-41.1% 23.9 Used Automotive Dealers -10.3%-9.4%-4.4% 23.8 Drug Stores -4.2%-5.2%-4.8% 20.9 Auto Repair Shops -6.8%-5.9%-9.7% 19.5 Garden/Agricultural Supplies *Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars REVENUE BY BUSINESS GROUP Atascadero This Fiscal Year* 18%Pools 15%Restaurants 9%Autos/Trans. 16%Building 7%Bus./Ind. 7% Cons.Goods 8%Food/Drug 20%Fuel *ADJUSTED FORECONOMIC DATA SALES TAX UPDATECITY OF ATASCADERO2Q 2024 STATEWIDE RESULTS California’s local one cent sales and use tax receipts during the months of April through June were 0.6% lower than the same quarter one year ago after adjusting for accounting anomalies. The calendar year second quarter is traditionally the beginning of the summer spending season; however, returns were relatively flat when compared to a year ago. For many California agencies, this also marks the end of the 2023-24 fiscal year, where statewide sales tax revenues were down 1.3% from the 2022-23 fiscal year. Consistent with recent trends, auto- transportation receipts fell 6.2% - the largest sector decline this quarter. Sustained high interest rates, tightened credit standards, and increased cost of insurance all converged to impact returns. While inventory-levels for many dealerships have rebounded, it’s only proving to create downward pressure on prices, further constraining receipts. Summer weather usually marks fruitful periods for building-construction, however as property owners struggle to access equity for improvements, year-over-year receipts declined. The price of lumber and other materials are now more affordable, but new projects have been sidelined by developers until financing and mortgage costs drop further. Similarly, as the price of consumer goods has cooled with moderate inflation rates, returns from multiple merchants have curtailed. Men’s and women’s apparel, home furnishings, electronic-appliance and specialty stores could not escape the change in shopper’s preferences for lower priced items from large brick-and-mortar retailers like discount department stores. Restaurants experienced only a modest gain of 0.7%. As AB 1228 is enacted – state law increasing California’s minimum wage at designated eateries – third party data reports that foot traffic to all such establishments decreased during this same time period. Not only are diners selecting less expensive places to eat, but many may have been pushed to limit their frequency to dine out. Multiple of sectors experienced mild growth including allocations from the countywide use tax pool and the business-industrial group, both benefiting from online shopping, and fuel-service stations as drivers continue to hit the road even as gas prices remain elevated. Halfway through the current calendar year, revenue trends remain slightly lower than a year ago overall. Although the Federal Reserve recently reduced the Fed Funds Rate helping temper the cost of financing, personal consumption forecasts remain insipid through the remainder of 2024. Consumers are more likely to wait for greater improvement of household economic conditions before extending themselves again, inspiring the next sales tax growth cycle.