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Q1 2022*
Q1 2023*
Legend
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Business
and
Industry
Building
and
Construction
County
and State
Pools
General
Consumer
Goods
Autos
and
Transportation
Restaurants
and
Hotels
Fuel and
Service
Stations
Food
and
Drugs
CITY OF CORONA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Summer 2023
Agile Sourcing Partners
All American Asphalt
Amazon MFA
American Electric
Supply
Anixter
Auto Gallery Mitsubishi
Corona
CardinaleWay Hyundai
Chevron
Circle K
Corona Nissan
Costco
Culver Newlin
Downs Energy
Freedom Forever
Procurement
Ganahl Lumber
Company
Guest Supply
Home Depot
Larry H Miller Toyota
Corona
Liberty Glass Fabricators
Robertsons Ready Mix
Sams Club w/ Fuel
Spreen Honda Corona
Stater
Target
Walmart Supercenter
SALES TAX UPDATE
CITY OF CORONA
1Q 2023 (JANUARY - MARCH)
Corona’s receipts from January through
March were 21.4% above the first
sales period in 2022, buoyed by a large
recovery of previously misallocated
funds garnered by the City’s ongoing
point-of-sale audit program. Excluding
this and other reporting aberrations,
actual sales were up 6.6%.
The audit recovery additionally boosted
the City’s share of the countywide
use-tax pool since this revenue is
allocated among local agencies based on
proportional cash receipts each quarter.
The recent addition of a new businessindustrial operation in Corona was also significantly positive.
Tax proceeds from contractors and
plumbing along with electrical suppliers
declined; the wettest winter weather in
decades may have delayed numerous
projects.
Measure X underperformed the BradleyBurns tax receipts previously discussed.
As a destination-based tax, this revenue
did not benefit from the new businessindustrial operation since the entity ships most of its goods to buyers in
other jurisdictions.
Net of aberrations, taxable sales for all of
Riverside County declined 1.5% over the
comparable time period; the Southern
California region was down 0.9%.
TOTAL:
-1.9%
$10,248,924
Measure X
TOTAL: $ 13,694,228
6.6% -1.5% -1.1%
COUNTY STATE
CORONA
1Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '23*
Corona
Business Type Change Change Change
County HdL State
Contractors 1,684.1 -13.6% -13.6% -12.7%
Discount Dept Stores 919.1 -3.7% 1.0% -0.6%
New Motor Vehicle Dealers 885.9 4.3% -3.8% 0.8%
Service Stations 658.5 -18.9% -11.4% -9.8%
Building Materials 618.5 -4.2% -12.6% -9.7%
Casual Dining 520.8 3.0% 8.0% 9.7%
Plumbing/Electrical Supplies 499.6 -13.2% 0.0% -4.5%
Quick-Service Restaurants 447.0 3.4% 5.0% 5.1%
Heavy Industrial 366.1 -7.5% 7.6% -5.5%
Grocery Stores 218.7 5.0% 5.7% 5.4%
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Corona This Quarter*
3%
Food/Drug
8%
Fuel
16%
Pools
8%
Restaurants
11%
Autos/Trans.
21%
Building
21%
Bus./Ind.
13%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
1Q 2023 CITY OF CORONA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months
of January through March were 1.1%
lower than the same quarter one year ago
after adjusting for accounting anomalies.
The first quarter of the calendar year
experienced heavy rainfall and a slight
pullback by consumers during this postholiday period.
The building and construction sector
was most impacted by wet weather
conditions, especially contractors and
paint/glass vendors. Furthermore, when
coupled with year-over-year (YOY)
lumber price declines, the sector saw a
9.7% statewide drop.
YOY declines in fuel prices at the pump
reduced receipts from gas stations and
petroleum providers. Even with OPEC’s
recent production cuts, the global cost of
crude oil has remained steady setting up
for moderate gas prices for travelers and
commuters in the coming summer months.
Retailers also selling fuel experienced a
similar impact and when combined with
weak results from department stores,
overall general consumer goods’ returns
slightly declined.
After multiple years of high demand
for vehicles (especially high-end luxury
and electronic/hybrid brands), along
with inflation driving car prices higher,
customers demand has softened with
revenue slumping 1.3%. The return of
available inventory later this calendar
year may sustain downward pressure on
activity, potentially giving buyers more
leverage to negotiate lower prices.
Use taxes remitted via the countywide
pools decreased 1.1%, marking the
second consecutive quarter of decline.
Cooling consumer confidence, expansion
of more in-state fulfillment centers and
retailers using existing locations to deliver
goods tied to online orders continue to
shift taxes away from the pools. While the
offsetting effect was these revenues being
allocated directly to jurisdictions where
the goods were sourced, only a limited
number of agencies benefited.
Spending at local restaurants and hotels
continues to be robust. Patrons were
unaffected by increased menu prices and
wait times and maintained their willingness
to dine out. In addition, investments in
warehouse/farm/construction equipment
was steady.
For the remainder of 2023 sales taxes may
decrease modestly, then begin a nominal
recovery in early 2024. Volatile economic
indicators such as the Federal Funds rate,
unemployment levels, and discretionary
spending will influence outcomes. While it
appears the Federal Reserve’s actions to
fight inflation is taking effect, any lasting
downward pressure on consumer pricing
could also hinder short term growth.