Quarterly Sales Tax Report
for the Period Ending
December 31, 2021
www.hdlcompanies.com | 888.861.0220
Q3 2020*
Q3 2021*
Legend
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity Business
and
Industry
County
and State
Pools
Restaurants
and
Hotels
General
Consumer
Goods
Fuel and
Service
Stations
Food
and
Drugs
Autos
and
Transportation
Building
and
Construction
TOP 25 PRODUCERSCITY OF ALAMEDA HIGHLIGHTS
Published by HdL Companies in Winter 2022
ABB Optical Group
Abbott Diabetes Care
Aisle 1
Alameda Electrical
Distributors
Arco
Bron Tapes
Center for the
Collaborative Classroom
Chevron
CVS Pharmacy
Diamond Auto Sales
In N Out Burger
Kohls
Main Street Supply
Nob Hill Food
Penumbra
Petco
Pottery Barn Outlet
Ross
Safeway
Safeway Fuel
Sushi House
Target
TJ Maxx
Trader Joes
Walgreens
SALES TAX UPDATE
CITY OF ALAMEDA
3Q 2021 (JULY - SEPTEMBER)
Alameda’s receipts from July through
September were 11.9% above the third
sales period in 2020. Excluding reporting
aberrations, actual sales were up 11.8%.
The authorization to dine indoors
safely provoked a 63% improvement
from casual dining; overall, restaurants-
hotel’s current quarter rose 42% above
year ago remittances. More drivers
on the road purchased greater gallons
of fuel at higher at-the-pump rates;
service stations had a 53% rebound.
Last year, retailers took an economic
hit as mandated restrictions resulted in
numerous temporary business closures.
In contrast, summer 2021 shopping in
person preferences boosted general
consumer goods; segments with gains
were specialty, apparel and home
furnishings stores.
Varied results nudged the business-
industry group up 5%; gains in medical/
biotech and business services more than
made up for declines in other segments.
Measure F’s tally noted above was
caused by two major components.
Pandemic recovery was considerable
from fuel, eateries and general retail.
In addition, several onetime business
equipment and construction products
sales were shipped into the City. Net of
aberrations, taxable sales for all of the
Bay Area grew 15.1%.
TOTAL:
25.4%
$2,352,696
Measure F
TOTAL: $ 2,964,021
11.8% 14.2% 18.3%
COUNTY STATE
ALAMEDA
3Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '21*
Alameda
Business Type Change Change Change
County HdL State
7.9%9.6%2.6% 566.9 Medical/Biotech
68.3%66.6%61.7% 334.6 Casual Dining
53.6%50.3%52.5% 235.8 Service Stations
13.5%15.7%7.9% 131.2 Quick-Service Restaurants
-0.2%-0.9%-2.6% 100.1 Grocery Stores
39.0%34.6%14.8% 79.8 Family Apparel
21.4%20.4%15.0% 59.9 Specialty Stores
19.0%25.4%14.3% 54.3 Fast-Casual Restaurants
11.0%9.6%26.4% 50.4 Home Furnishings
23.8%35.3%40.2% 43.2 Business Services
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars SALES TAX RATE BREAKDOWN 10.75%
3.9375%State General Fund
1.0000%City/County General Fund (Bradley-Burns)
0.5000%Alameda Transactions & Use Tax (ALTG)
0.5000%County Public Safety (Prop 172)
1.5625%County Realignment (Mental Health/Welfare/Public Safety)
0.2500%Countywide Transportation Fund
0.5000%Alameda County Children's Health Transactions Tax (ACCT)
0.5000%Alameda County Transactions & Use Tax (ACTU)
0.5000%BART in Alameda County (BART)
0.5000%Alameda County Transportation Improvement Authority (ACTI)
0.5000%Alameda County Essential Healthcare Services Transactions and Use Tax (ACHC)
0.5000%Alameda County Transportation Commision (ACTC)
10.7500%Tax Rate Effective July 01, 2021
SALES TAX UPDATECITY OF ALAMEDA3Q 2021
STATEWIDE RESULTS
Local one cent sales and use tax receipts
for sales occurring July through September
were 18% higher than the same quarter
one year ago after adjusting for accounting
anomalies and back payments from
previous quarters. These aberrations had
been much greater than normal in the last
two years as the Governor’s Executive
Orders allowed businesses to defer some
sales tax payments as a supportive measure
during the pandemic. This program has
now expired, and merchant remittances are
more consistent, making cash receipts more
reflective of underlying economic activity.
The prior year comparison quarter was the
start of the pandemic recovery, and the
strong growth enjoyed since continued
with the recent results.
Surprisingly, one of the stronger sectors
has been restaurants and hotels. Originally
forecasted to take an extended amount
of time to recover, statewide sales tax
generated during the summer months
exceeded amounts from pre-pandemic
2019. Even with the availability of indoor
and outdoor dining, pent up demand
resulted in long wait times to enjoy local
culinary experiences. When combined
with increasing restaurant tabs as the
cost of food and staff wages surge, sales
tax remittances are expected to continue
growing. Additionally, while the industry
awaits the return of foreign tourism in
metropolitan areas, strong domestic travel
has helped varied regions around the state
especially Southern California and the
Central Coast.
Receipts from general consumer goods
marked a steady recovery, led by apparel
retailers, jewelry, electronic/appliance and
specialty outlets. Discount department
stores, especially those selling gas, helped
exemplify the strength of brick-and-mortar
merchants. Gains from the countywide use
tax pools however, slowed to 2% compared
to the high-water mark last year, which
had been boosted by new tax collecting
requirements imposed under AB 147 for
online retailers. All things considered, when
combined with positive economic trends,
these are a welcome sign leading up to the
holiday shopping period.
Although car dealers had expressed
concerns about inventory shortages due
to supply chain disruptions and computer
chip shortages earlier in the year, the sale
of new and used vehicles posted solid gains
regardless. Higher property values and good
weather contributed to strong building
materials and contractor returns. As
commuting workers and travelers returned
to the road with increased gas prices, fuel
and service stations also experienced a
dramatic recovery.
Overall growth is expected to continue
through the end of the 2021 calendar year.
Possible headwinds into 2022 include:
pent up demand for travel and experiences
shifting spending away from taxable goods;
higher prices for fuel, merchandise and
services displacing more of consumer’s
disposable income; and expected interest
rate hikes resulting in more costly financing
for automobiles, homes, and consumer
loans.