DATE: 11/05/2025
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2025-415
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
QUARTERLY SALES TAX REPORT – 2025, QUARTER 2 (APRIL - JUNE) EXECUTIVE SUMMARY:
The City of Corona contracts with HdL Companies to provide sales tax consulting services, which include quarterly data reports. The sales tax report for Quarter 2 2025 is provided to the City Council as a receive and file item.
RECOMMENDED ACTION:
That the City Council receive and file the quarterly sales tax information from HdL Companies for Quarter 2 2025 (April – June).
BACKGROUND & HISTORY:
HdL Companies is contracted to provide sales tax consulting services for the City. On a quarterly basis, they review and analyze the City’s sales tax activity. Their resources provide them with information to understand sales tax trends and how the City is performing compared to agencies near Corona, agencies in Riverside County, Southern California, and the State. There is a one-quarter lag in when the information is available to HdL Companies for their review and analysis.
ANALYSIS:
Below are the Quarter 2 2025 (April – June) sales tax highlights. The attached newsletter and consensus forecast documents provide additional details.
Quarter 2 2025 (April – June)
From April to June, Corona’s receipts were 1.4% lower than those in the same period in 2024 (Bradley Burns portion of sales tax). After accounting for reporting anomalies, actual sales saw a decline of 5.2%. A primary driver of this decline was reduced tax revenue from building-construction related sales, reflecting the frozen housing market. Businessindustry returns also weakened, aligning with the national slowdown in manufacturing activity as indicated by the lower Purchasing Managers Index. Locally, performance may have been further impacted by the recent opening of a competing outlet in a nearby location. Lower gasoline prices compared to the previous year contributed to softer returns from fuel-service stations. Heightened consumer caution also led to reduced spending at discount department stores. A business closure hurt new car sales.
Measure X, the City’s one percent voter-approved district tax, outperformed the previously mentioned Bradley-Burns returns, supported by strong vehicle purchases by local residents.
Across Riverside County, taxable sales, excluding anomalies, declined by 1.6% compared to the same period last year. Sales across the broader Southern California region remained flat.
FINANCIAL IMPACT:
There is no financial impact associated with the recommended action.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to receive and file a quarterly sales tax report, and there is no possibility that approval of the recommended actions will have a significant effect on the environment.
Therefore, no environmental analysis is required.
PREPARED BY: KIM SITTON, FINANCE DIRECTOR
REVIEWED BY: BRETT CHANNING, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1–2025-Q2 Sales Tax Update Newsletter
2. Exhibit 2–2025-HdL California Consensus Forecast Sept. 2025
3. Exhibit3-2025-Q2 Corona Sales Tax Presentation