www.hdlcompanies.com | 888.861.0220
Q4 2022*
Q4 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
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 Spring 2024
Agile Sourcing Partners
All American Asphalt
Amazon Com Services
American Electric
Supply
CardinaleWay Hyundai
Chevron
Circle K
Corona Nissan
Costco
Culver Newlin
Downs Energy
Ganahl Lumber
Company
Guest Supply
Home Depot
Larry H Miller Toyota
Corona
Robertsons Ready Mix
Ross
Sams Club w/ Fuel
Spreen Honda Corona
Supply Patriot
Target
Vulcan Materials
Walmart Supercenter
West Coast Copper
Supply
Zumiez
SALES TAX UPDATE
CITY OF CORONA
4Q 2023 (OCTOBER - DECEMBER)
Corona’s Bradley-Burns sales tax receipts
for the October-December period dipped
by 2.5% compared to the same period in
2022. Adjusting for reporting anomalies,
actual sales experienced a 1.5% decrease.
The decline in tax receipts from new
car dealers was significant, but partially
attributed to a recent ownership transition
at a local dealership causing temporary
disruptions in returns.
Sales of electrical and other businessindustrial equipment also suffered, echoing the nationwide trend reflected
in the contraction of the US Purchasing
Manufacturing Index (PMI) from November
2022 through 2023. This decline indicated
reduced manufacturing and businessindustrial activities across the country.
Fuel and service station returns were also
affected, aligned with the period’s decrease
in gasoline prices at the pump.
However, there were bright spots, notably
strong returns from local contractors
amidst rising construction input costs.
Measure X tax revenue also declined,
primarily due to lower business-industrial
purchases, resident auto sales, and
decreased gasoline expenditures.
Net of anomalies, taxable sales in Riverside
County decreased by 0.9%, while the
Southern California region experienced a
2.0% downturn over the same period.
TOTAL:
-3.1%
$11,402,222
Measure X
TOTAL: $ 15,391,288
-1.5% -0.9% -2.5%
COUNTY STATE
CORONA
4Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '23*
Corona
Business Type Change Change Change
County HdL State
Contractors 2,513.1 12.3% 5.9% 1.3%
Discount Dept Stores 1,223.6 -3.8% -0.6% -1.5%
Fulfillment Centers 1,181.0 8.5% 2.0% 0.0%
Building Materials 692.5 4.3% -4.6% -2.0%
New Motor Vehicle Dealers 685.8 -24.6% -0.8% -7.7%
Service Stations 671.7 -8.4% -4.3% -4.9%
Casual Dining 523.9 -0.5% -2.0% 1.9%
Quick-Service Restaurants 473.5 0.9% 1.9% 0.4%
Heavy Industrial 441.7 14.5% -10.4% -7.5%
Plumbing/Electrical Supplies 441.6 -17.1% -14.0% -4.2%
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Corona This Calendar Year*
3%
Food/Drug
8%
Fuel
15%
Pools
7%
Restaurants
10%
Autos/Trans.
24%
Building
20%
Bus./Ind.
13%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
4Q 2023 CITY OF CORONA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts during the months of October
through December were 2.5% lower than
the same quarter one year ago after adjusting
for accounting anomalies. The fourth quarter
is notably the highest sales tax generating
quarter of the year and exhibited diminished
year-over-year returns as consumers
balanced higher prices and financing costs
with essential household needs.
Higher interest rates impacted the autotransportation sector, especially luxury vehicles, as the group dropped 6.2%.
Inventories for many dealers returned,
creating downward pressure on prices,
further constraining receipts. Lenders have
tightened credit standards, making loan
financing challenging. Improved leasing
activity was the lone bright spot. With slow
movement expected by the Federal Treasury
setting interest rate policy, future revenue
growth may stagnate.
Fuel and service stations contributed a
similar downturn, as lower fuel prices
reduced receipts from gas stations and
petroleum providers. While this has been
the trend throughout 2023, recently global
crude oil prices have been on the rise and
should see growth in the coming year. This
decline also impacted the general consumer
goods category as those retailers selling fuel
experienced a similar drop.
During this holiday shopping period, general
consumer goods experienced lackluster sales
as results pulled back 3.4%. Most sectors saw
reductions with home furnishings, women’s
apparel, shoe and electronic-appliance
stores being the most significant. Returns
also marked the fourth consecutive quarter
showing comparable declines. Similar to the
anticipated trend of new vehicles, consumer
spending may be sluggish in the near term.
Even though revenue from most major sectors
slowed, restaurant sales remained steady
with a modest gain of 1.0%. Results from
casual dining establishments grew during the
early winter period as patrons enjoyed indoor
dining. However, following the greater trend
of consumers looking for value, fine dining
eateries experienced lower receipts. The
industry is still bracing for implementation
of AB 1228, a new law increasing minimum
wages for ‘fast food restaurants’, on April 1,
2024.
Use taxes remitted via the countywide pools
grew 1.0%, marking the first positive rebound
after four consecutive quarters of decline.
While overall online sales volume is steady,
pool collections contracted more taxes
allocated directly to local agencies via in-state
fulfillment and through existing retail outlets.
Statewide, calendar year 2023 ended with a
2.3% decline from 2022. Elevated inflation
and interest rates led to higher cost of goods
resulting in consumers not spending as much
as they had prior. Following multiple years
of post-pandemic tax growth assisted by
federal tax policy and temporary workplace
accommodations, consumers reassessed
their economic conditions and limited
purchases. As the Federal Reserve considers
delaying softening rates, consumer spending
could likely stagnate delaying a return to the
normal historical growth trend in 2024.