www.hdlcompanies.com | 888.861.0220
Q3 2022*
Q3 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 Winter 2024
Agile Sourcing Partners
All American Asphalt
Amazon Com Services
Amazon MFA
American Electric
Supply
Anixter
CardinaleWay Hyundai
Chevron
Circle K
Corona Nissan
Costco
Culver Newlin
Downs Energy
Ganahl Lumber
Guest Supply
Home Depot
Larry H Miller Toyota
Corona
Robertsons Ready Mix
Sams Club w/ Fuel
Spreen Honda Corona
Supply Patriot
Target
Vulcan Materials
Walmart Supercenter
West Coast Copper
Supply
SALES TAX UPDATE
CITY OF CORONA
3Q 2023 (JULY - SEPTEMBER)
Corona’s receipts from July through
September were 9.7% above the third
sales period in 2022. Excluding reporting
aberrations, actual sales were up 8.2%.
The largest contributor to this remarkable
performance was the emergence of
a new business-industrial venture in
Corona, which significantly bolstered
the City’s tax revenue. This positive
development also lifted the City’s share
of the countywide use-tax pool, since
this revenue is allocated among local
agencies based on their proportional
cash receipts.
Additionally, revenue from contractors
experienced a surge as construction
activity resumed following a pause
caused by unfavorable weather
conditions earlier in the year.
However, Measure X, did not perform
as well as the previously discussed
Bradley-Burns results. The main reason
for this discrepancy is that Measure X,
as a destination-based transactions tax,
did not benefit from the new businessindustrial operation since that firm predominately sells goods for delivery to
other jurisdictions.
Net of aberrations, taxable sales for all of
Riverside County declined 1.9% over the
comparable time period; the Southern
California region was down 1.4%.
TOTAL:
-3.9%
$10,803,524
Measure X
TOTAL: $ 15,519,999
8.2% -2.0% -1.7%
COUNTY STATE
CORONA
3Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '23*
Corona
Business Type Change Change Change
County HdL State
Contractors 2,712.4 20.3% 7.9% -1.1%
Discount Dept Stores 1,020.3 -3.1% 2.6% 0.2%
New Motor Vehicle Dealers 815.2 -8.8% -0.1% -2.5%
Service Stations 794.5 -12.3% -7.8% -7.3%
Building Materials 779.5 5.6% -8.8% -2.7%
Plumbing/Electrical Supplies 528.8 -24.4% -9.0% -3.8%
Casual Dining 512.9 0.8% 1.5% 2.8%
Quick-Service Restaurants 462.8 0.2% 1.9% 2.7%
Heavy Industrial 447.0 -0.9% 8.9% -6.2%
Grocery Stores 228.2 1.1% -0.1% 2.3%
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Corona This Quarter*
12%
Cons.Goods
2%
Food/Drug
8%
Fuel
14%
Pools
7%
Restaurants
10%
Autos/Trans.
26%
Building
20%
Bus./Ind.
*ADJUSTED FOR
ECONOMIC DATA
3Q 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
July through September were 1.6% lower
than the same quarter one year ago after
adjusting for accounting anomalies. The
third quarter of the calendar year continued
with a challenging comparison to prior year
growth and stagnating consumer demand
in the face of higher prices of goods.
Fuel and service stations contributed the
greatest overall decline as lower fuel prices
at the pump reduced receipts from gas
stations and petroleum providers. While
global crude oil prices have stabilized, they
remained 15% lower year-over-year. This
decline also impacted the general consumer
goods category as those retailers selling
fuel experienced a similar drop. Despite
OPEC and Russia production cuts having
upward pressure on pricing, global demand
during the winter months has softened.
Along with merchants selling gas, many
other general consumer categories
were also down from the 2022 quarter,
confirming consumers pulling back
on purchases. Home furnishings and
electronic-appliances were a couple of the
largest sectors with the biggest reductions.
As inflation and higher prices were the
main story a year ago, currently it appears
to be a balancing act between wants and
needs, leaving meek expectations for the
upcoming holiday shopping season.
Even following a long, wet first half of 2023,
spending at building and construction
suppliers moderately slowed. The current
high interest rate environment did not help
the summer period and still represents the
largest potential headwind for the industry
with depressed commercial development,
slowing public infrastructure projects
and new housing starts waiting for more
profitable financial conditions.
Despite continued increases of new car
registrations, revenue from the autostransportation sector slipped 2.6%. The improved activity remains mostly attributed
to rental car agencies restocking their fleets.
Like other segments, elevated financing costs
are expected to impede future retail volume.
Use taxes remitted via the countywide
pools dipped 3.0%, marking the fourth
consecutive quarter of decline. While
overall online sales volume is steady, pool
collections dropped with the offsetting
effect of more taxes allocated directly
to local agencies via in-state fulfillment
generated at large warehouses and through
existing retail outlets.
Restaurants remained an economic bright
spot through summer exhibiting a 2.6% gain.
As tourism, holiday and business travel are
all expected to have recovered in 2024, the
industry is bracing for implementation of AB
1228 - new CA law setting minimum wages
for ‘fast food restaurants’.
With one more quarterly result to go in
2023, the recent trend of a moderate decline
appears likely before a recovery in 2024.
Initial reports from the holiday shopping
season reflect a 3% bump in retail sales
compared to 2022. Lingering consumer
confidence may have also received welcome
news as the Federal Reserve considers
softening rates by mid-2024.