HomeMy WebLinkAbout[Untitled]CITY OF DIAMOND BAR
SALES TAX UPDATE
4Q 2021(OCTOBER - DECEMBER)
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$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
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SALES TAX BY MAJOR BUSINESS GROUP
County Fuel and Restaurants General
and State Service and Consumer
Pools Stations Hotels Goods
CITY OF DIAMOND BAR HIGHLIGHTS
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DIAMOND BAR
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Legend
Q4 2020'
- • Q4 2021'
Food
Autos Building
and
and and
Drugs
Transportation Construction
Diamond Bar's receipts from October the general consumer growth, while
through December were 23.4% above improved sales by auto -transportation
the fourth sales period in 2020. merchants further contributed to the
Excluding reporting aberrations, actual positive outcome.
sales were up 13.1%.
This strong percentage gain signifies the
continued rebound from the pandemic
impacts of a year ago, especially during
the normal holiday shopping period.
A dramatic increase in gas prices, caused
by both more commuters and the higher
cost of crude oil globally, boosted returns
from service stations - a trend not likely
to change for some time. Total receipts
from restaurants, casual dining, quick
service and others, hit another milestone
as they eclipsed any amounts previously
reported.
Sensational holiday returns from multiple
retailers were largely responsible for
However, the gains were partially offset
by the county's allocation from the
countywide use tax pool decreasing by
5% due to a softening of online purchases
from out-of-state vendors compared to
the shutdown periods a year ago, and a
return of spending in other communities
providing them a greater portion of the
pool overall.
Net of aberrations, taxable sales for all of
Los Angeles County grew 16.9% over the
comparable time period; the Southern
California region was up 17.4%.
www hdlcompanies.com 1888,861.022(
( ) STATEWIDE RESULTS
California's local one cent sales and use
tax receipts for sales during the months of
October through December were 15%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, and the strong result
was a boon to local agencies across the State.
Consumers spent freely as the economy
continued its rebound from the pandemic
and as robust labor demand reduced
unemployment and drove up wages.
Brick and mortar retailers did exceptionally
well as many shoppers returned to physical
stores rather than shopping online as the
COVID crisis waned. This was especially
true for traditional department stores
that have long been among the weakest
categories in retail. Discount department
stores, particularly those selling gas, family
and women's apparel and jewelry merchants
also experienced strong sales. Many retailers
are now generating revenue that is nearly
as much, or even higher, than pre -pandemic
levels.
Sales by new and used car dealers were also
much higher than a year ago. The inventory
shortage has resulted in higher prices that
have more than offset the decline in unit
volume in terms of revenue generation for
most dealerships. Restaurants and hotels
were only moderately lower than last
quarter, with both periods being the highest
in the State's history. Increased menu prices
coupled with robust demand to dine out are
largely responsible for these gains. These are
impressive results for a sector that does not
yet include the positive impact that will occur
later this year as international travel steadily
increases at major airports. Conference
business, an important revenue component
for many hotels, is also still in the early stages
of recovery.
Building material suppliers and contractors
were steady as growing residential and
commercial property values boosted demand,
particularly in the Southern California,
Sacramento and San Joaquin Valley regions.
Although anticipated interest rate increases
by the Federal Reserve could dampen the
short-term outlook for this sector, industry
experts believe limited selling activity will
inspire increased upgrades and improvements
by existing owners. With demand remaining
tight and calls for more affordable housing
throughout the state, the long-term outlook
remains positive.
The fourth quarter, the final sales period of
calendar year 2021, exhibited a 20% rebound
c
in tax receipts compared to calendar year
2020. General consumer goods, restaurants,
fuel and auto -transportation industries were
the largest contributors to this improvement.
However, the future growth rate for statewide
sales tax revenue is expected to slow markedly.
Retail activity has now moved past the easy
year -over -year comparison quarters in 2021
versus the depths of the pandemic bottom the
year before. Additional headwinds going into
2022 include surging inflation, a dramaticjump
in the global price of crude oil due to Russia's
war in Ukraine and corresponding monetary
tightening by the Federal Reserve. This is
expected to result in weakening consumer
sentiment and continued, but decelerating,
sales tax growth into 2023.
Others
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'ADJUSTED FOR
ECONOMIC DATA
•' NON-CONFIDENTIA
Diamond Bar
County
HdL State
Business Type
Q4'21*
Change
Change
Change
Service Stations
266.3
52.3%
60.5%
53.7%
Casual Dining
114.6
117.1%
80.6%
66.5% 8
Quick -Service Restaurants
69.0
14.4%
13.8%
12.1%
Grocery Stores
54.5
-8.0%
-0.1%
0.6%
Fast -Casual Restaurants
16.8
22.1%
14.4%
16.0%
Auto Repair Shops
14.8
35.3%
22.0%
18.4%
Automotive Supply Stores
14.2
40.1%
9.9%
10.5%'
Specialty Stores
13.5
-14.8%
18.4%
18.8%
Contractors
12.0
32.3%
7.0%
5.3%
Convenience Stores/Liquor
10.8
-28.5%
1.2%
2.2% 8
`Allocation aberrations have been adjusted to reflect sales activity
'In thousands of dollars