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FLED Committee Meeting Oct. 2015
This document provides a sales tax update for the City of Corona from October 7, 2015. It includes information on Corona's sales tax base by major industry groups, sales tax trends over the past 13 quarters, and a comparison of online versus brick-and-mortar sales tax revenues. The data presented gives insights into Corona's economy and revenue sources.
FLED Committee Meeting Oct. 2015
- 1. Delivering Revenue, Insightand Efficiency to Local Government SALES TAX UPDATE CITY OF CORONA FLED October 7, 2015
- 2. Delivering Revenue, Insightand Efficiency to Local Government CORONA - SALES TAX BASE
- 3. Delivering Revenue, Insightand Efficiency to Local Government CITY OF CORONA MAJOR INDUSTRY GROUPS
- 4. Delivering Revenue, Insightand Efficiency to Local Government CORONA - 13 QTR TREND
- 5. Delivering Revenue, Insightand Efficiency to Local Government CORONA - 13 QTR TREND
- 6. Delivering Revenue, Insightand Efficiency to Local Government ONLINE VS. BRICK & MORTAR
- 7. Delivering Revenue, Insightand Efficiency to Local Government ONLINE VS. BRICK & MORTAR
Editor's Notes
- #3 The City’s receives a higher than average percentage of sales tax revenue from the building and construction sector (25.4% vs 8.2% - statewide average). Receipts are lower in Corona than statewide averages for restaurants and hotels (8.3% vs. 13%), Autos and Transportation (11.5% vs. 16.5%) and Food and Drugs (3.4% vs. 6%).
- #4 Building & Const. – Sharp decline between 2006 and 2009 due to the housing bust - lost a decade of gains even with stimulus spending. Gaining some momentum, particularly with home improvement spending and multi-family and mixed use development. General Cons. Goods –Categories with greatest growth include electronics/appliance stores, home furnishings, and specialty stores. Consumer preferences for making purchases from this sector online and the associated local sales tax is being allocated through the county pool. Business & Industry –Businesses have been investing in equipment and technology. Biggest recent gains coming from light industrial, business services and office equipment. Fuel & SS –fuel prices dropped significantly in the latter part of 2014 which will negatively impact sales tax receipts this fiscal year. Although prices have risen from the trough, they are still below the year ago period. Consumer savings averaging about $800/year. Most is going to pay down debt and savings. Autos & Trans – Recovery in autos, but remember we have huge pent-up demand from delayed purchases during recession. The recent gains should continue into 2017, although at a somewhat slower pace. The average age of passenger cars and light duty trucks is still over 11 years. That’s almost 3 years older than the average a decade ago. In 2012 there were 295 fewer new car dealers in California compared to 2006. Sales tax is now concentrated in fewer jurisdictions. Rest & Hotels –Consumers dining out more often, travel & tourism is up for business, group and leisure. Lower gasoline prices are providing consumers with more discretionary income and boosting sales in this group. Food & Drugs-fierce competition in this segment, including new online options Amazon Fresh, Google Shopping Express and Walmart To Go.
- #6 Overall the City’s sales tax receipts are up 14.8% over the most recent 13 quarter period.