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Q2 2022*
Q2 2023*
Legend
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity Building
and
Construction
Business
and
Industry
County
and State
Pools
General
Consumer
Goods
Autos
and
Transportation
Fuel and
Service
Stations
Restaurants
and
Hotels
Food
and
Drugs
CITY OF CORONA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Fall 2023
Agile Sourcing Partners
All American Asphalt
Amazon MFA
American Electric
Supply
Anixter
CardinaleWay Hyundai
Chevron
Circle K
Corona Nissan
Costco
Culver Newlin
Downs Energy
Duralum Products
Freedom Forever
Procurement
Ganahl Lumber
Company
Guest Supply
Home Depot
Larry H Miller Toyota
Corona
Robertsons Ready Mix
Sams Club w/ Fuel
Spreen Honda Corona
Target
Vulcan Materials
Walmart Supercenter
West Coast Copper
Supply
SALES TAX UPDATE
CITY OF CORONA
2Q 2023 (APRIL - JUNE)
Corona enjoyed a 17.5% increase in cash
receipts from April to June compared
to the second sales period in 2022.
However, a portion of this growth was
the result of an audit recovery of revenue
that had been previously misallocated to
other jurisdictions. Excluding this and
other reporting aberrations, actual sales
were up a still impressive 10.3%.
The primary driver behind this positive
trend was the recent addition of a new
business-industrial operation in Corona.
Contractor sales also bounced back from
last quarter’s rain-impaired result. These
positive developments additionally lifted
allocations from the countywide use-tax
pool since these funds are appropriated
among local agencies based on
proportional cash receipts.
Measure X did not perform as well as
the previously discussed Bradley-Burns
results. Consequently, as a destinationbased tax, allocations did not benefit from the new business-industrial operation
since most of this entity’s sales are
delivered to buyers in other jurisdictions.
Net of aberrations, taxable sales for all of
Riverside County declined 2.9% over the
comparable time period; the Southern
California region was down 2.9%.
TOTAL:
-5.8%
$10,878,838
Measure X
TOTAL: $ 15,624,448
10.3% -2.9% -2.9%
COUNTY STATE
CORONA
2Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '23*
Corona
Business Type Change Change Change
County HdL State
Contractors 2,795.6 38.4% 3.0% -3.0%
Discount Dept Stores 981.2 -9.0% -4.3% -5.9%
New Motor Vehicle Dealers 894.3 -5.1% 1.5% -0.3%
Building Materials 738.2 7.2% -16.8% -8.0%
Service Stations 732.1 -26.6% -20.2% -19.9%
Plumbing/Electrical Supplies 555.0 -19.0% -2.5% -4.1%
Casual Dining 547.6 4.2% 3.6% 4.6%
Quick-Service Restaurants 460.8 1.6% 3.1% 3.1%
Heavy Industrial 458.1 10.2% -1.0% -5.5%
Grocery Stores 243.7 2.7% 0.6% 2.9%
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Corona This Fiscal Year*
3%
Food/Drug
8%
Fuel
15%
Pools
7%
Restaurants
11%
Autos/Trans.
24%
Building
19%
Bus./Ind.
13%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
2Q 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 April
through June were 2.8% lower than the
same quarter one year ago after adjusting
for accounting anomalies. The second
quarter of the calendar year was impacted
by continued wet weather and a difficult
comparison with the prior year, which
experienced dramatic growth.
The fuel-service stations sector contributed
the most to this decline as year-over-year
(YOY) falling fuel prices at the pump reduced
receipts from gas stations and petroleum
providers. Russia’s invasion of Ukraine and
other world events during this period last
year, pushed the global cost of crude oil
to record highs. This dynamic also carried
into general consumer goods as retailers
selling fuel experienced a similar drop.
Recently, OPEC and Russia have maintained
production cuts having upward pressure on
pricing again leading to future comparative
growth.
Sustained wet conditions further delayed
projects, especially those from the prior
quarter, hindering building-construction
returns. YOY lumber price declines added
to the pull back from building materials
providers. Higher interest rates represent a
significant headwind for the industry with
potential impacts of limited commercial
development activity, slowing public
infrastructure projects and homeowners left
unable to access equity for renovations.
Despite a significant increase in new
car registrations, revenue from autostransportation fell by 1.4%. The improved activity can largely be attributed to rental
car agencies restocking their fleets.
However, these are wholesale transactions
with sales tax charged upon rental of these
vehicles. Weak demand for recreational
vehicles, boats and motorcycles coupled
with elevated overall financing costs remain
challenges going forward.
Use taxes remitted via the countywide
pools decreased 0.75%, marking the third
consecutive quarter of decline. While
overall online sales continue to rise, pool
collections dropped with the offsetting effect
of more in-state fulfillment generated at
large warehouses and through existing retail
outlets allocated directly to local agencies.
Restaurant sales were a bright spot as the
summer season began. Although menu prices
have flattened after a year of sharp gains,
patrons are making more restaurant trips
and are favoring spending their disposable
income on experiences. Better sales by office
material suppliers and enhanced investments
of warehouse-farm-construction equipment
contributed to improved returns for the
business-industry category.
Sales tax for the remainder of 2023 appears
likely to follow the recent trend of moderate
declines before leveling off in early 2024.
Cooling consumer confidence and greater
pressure on household budgets may lead to a
lackluster upcoming holiday shopping period.
Furthermore, the possibility of a longer and
more pronounced slowdown in economic
activity exists as the Federal Reserve
considers additional interest rate increases to
combat high prices that are already stretching
consumer wallets.