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Q2 2023*
Q2 2024*
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
Restaurants
and
Hotels
Fuel and
Service
Stations
Food
and
Drugs
CITY OF CORONA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Fall 2024
Agile Sourcing Partners
All American Asphalt
Amazon Com Services
Amazon MFA
American Electric
Supply
Anixter
CardinaleWay Hyundai
Circle K
Corona Nissan
Costco
Culver Newlin
Downs Energy
Ganahl Lumber
Company
Guest Supply
Home Depot
Larry H Miller Toyota
Corona
Robertsons Ready Mix
Ro Bus Sales
Sams Club w/ Fuel
Spreen Honda Corona
Supply Patriot
Target
Vulcan Materials
Walmart Supercenter
West Coast Copper
Supply
SALES TAX UPDATE
CITY OF CORONA
2Q 2024 (APRIL - JUNE)
Corona’s receipts from April through
June were 2.7% lower than the same
sales period in 2023, though this was
skewed by a large infusion of additional
funds from a state audit correction in
the comparison year. Excluding such
anomalies, actual sales increased by
0.6%.
Local contractors continued to see strong
returns, further boosted by the recent
opening of a new supplier in Corona.
The shift toward online shopping
also benefited local fulfillment center
revenue.
On the downside, a taxpayer reporting
change contributed to a drop in
business-industrial returns, and a recent
business closure added to the negative
impacts. Additionally, new car sales faced
challenges due to tight credit conditions
and elevated prices across the industry.
As a destination-based tax, Measure
X did not benefit from the increases in
contractor and fulfillment sales, as most
of these are sold to customers in other
areas.
Adjusting for anomalies, taxable sales
for all of Riverside County decreased
by 0.5% during this period, while the
Southern California region also saw a
0.5% decline.
TOTAL:
-0.6%
$10,847,886
Measure X
TOTAL: $ 15,696,748
0.6% -0.5% -0.6%
COUNTY STATE
CORONA
2Q2024
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '24*
Corona
Business Type Change Change Change
County HdL State
Contractors 3,004.0 6.7% 4.1% -0.2%
Fulfillment Centers 1,213.1 14.6% 2.8% 6.4%
Discount Dept Stores 1,000.9 2.0% 3.4% 2.8%
New Motor Vehicle Dealers 796.5 -10.9% -5.1% -7.7%
Building Materials 768.8 0.3% -2.8% -3.0%
Service Stations 670.0 -2.1% -0.8% 2.3%
Casual Dining 553.5 0.7% 0.2% 0.8%
Plumbing/Electrical Supplies 526.8 -4.3% -13.5% -5.1%
Quick-Service Restaurants 487.6 2.8% 2.5% 1.2%
Heavy Industrial 452.4 -3.5% -1.2% -0.6%
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Corona This Fiscal Year*
12%
Cons.Goods
3%
Food/Drug
8%
Fuel
14%
Pools
8%
Restaurants
9%
Autos/Trans.
26%
Building
21%
Bus./Ind.
*ADJUSTED FOR
ECONOMIC DATA
2Q 2024 CITY OF CORONA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts during the months of April
through June were 0.6% lower than the
same quarter one year ago after adjusting
for accounting anomalies. The calendar
year second quarter is traditionally the
beginning of the summer spending season;
however, returns were relatively flat when
compared to a year ago. For many California
agencies, this also marks the end of the
2023-24 fiscal year, where statewide sales
tax revenues were down 1.3% from the
2022-23 fiscal year.
Consistent with recent trends, autotransportation receipts fell 6.2% - the largest sector decline this quarter.
Sustained high interest rates, tightened
credit standards, and increased cost of
insurance all converged to impact returns.
While inventory-levels for many dealerships
have rebounded, it’s only proving to create
downward pressure on prices, further
constraining receipts.
Summer weather usually marks fruitful
periods for building-construction, however
as property owners struggle to access
equity for improvements, year-over-year
receipts declined. The price of lumber and
other materials are now more affordable,
but new projects have been sidelined by
developers until financing and mortgage
costs drop further.
Similarly, as the price of consumer goods
has cooled with moderate inflation rates,
returns from multiple merchants have
curtailed. Men’s and women’s apparel,
home furnishings, electronic-appliance
and specialty stores could not escape the
change in shopper’s preferences for lower
priced items from large brick-and-mortar
retailers like discount department stores.
Restaurants experienced only a modest
gain of 0.7%. As AB 1228 is enacted –
state law increasing California’s minimum
wage at designated eateries – third party
data reports that foot traffic to all such
establishments decreased during this same
time period. Not only are diners selecting
less expensive places to eat, but many may
have been pushed to limit their frequency to
dine out.
Multiple of sectors experienced mild growth
including allocations from the countywide
use tax pool and the business-industrial
group, both benefiting from online shopping,
and fuel-service stations as drivers continue
to hit the road even as gas prices remain
elevated.
Halfway through the current calendar year,
revenue trends remain slightly lower than
a year ago overall. Although the Federal
Reserve recently reduced the Fed Funds
Rate helping temper the cost of financing,
personal consumption forecasts remain
insipid through the remainder of 2024.
Consumers are more likely to wait for greater
improvement of household economic
conditions before extending themselves
again, inspiring the next sales tax growth
cycle.