DATE: 08/05/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-282
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
QUARTERLY SALES TAX REPORT – FIRST QUARTER 2026 (JANUARY-MARCH) EXECUTIVE SUMMARY:
This staff report asks the City Council to receive and file the First Quarter 2026 sales tax report provided by HdL Companies, with whom the City of Corona contracts for sales tax consulting services, including quarterly data reporting.
RECOMMENDED ACTION:
That the City Council receive and file the quarterly sales tax report from HdL Companies for the First Quarter 2026 (January – March).
BACKGROUND & HISTORY:
Hinderliter de Llamas (HdL) Companies is contracted to provide sales tax consulting services for the City of Corona. On a quarterly basis, HdL reviews and analyzes the City’s sales tax activity. HdL has the resources and information to understand sales tax trends and how the City of Corona is performing in comparison to other agencies in Riverside County, Southern California, and the State of California. There is a one-quarter lag as to the availability of the information for HdL Companies to complete the review and analysis.
ANALYSIS:
Below are the First Quarter 2026 (January – March) sales tax highlights. The attached HdL newsletter and consensus forecast documents provide additional details.
First Quarter 2026 (January – March)
From January to March 2026, Corona’s sales tax receipts on a cash basis were 2.8% higher than the same period in 2025 (Bradley Burns portion of sales tax). After accounting for reporting anomalies, actual sales increased by 1.6%, while Statewide sales tax receipts rose 4.0% for the quarter. Building and construction sales had been sluggish across the State of California and locally over the past several quarters; however, the First Quarter (Q1) 2026 showed a 4.3% increase, while Statewide receipts dropped 1.2%.
Sales tax from the Auto and Transportation industry showed the largest gains for the quarter, up 15.4% compared to the same quarter in 2025, primarily due to a change in ownership at one of the local auto dealerships. Tax receipts from the fuel and service station sector remain low compared to Q1 2025, as a change in business ownership led to sales tax being reported outside the City’s jurisdiction.
Measure X, the City’s one percent voter-approved district sales tax, outperformed the previously mentioned Bradley-Burns returns, supported by strong sales of contractor, plumbing, and electrical supplies tied to local projects. After accounting for reporting anomalies, actual sales increased 4.5% compared to the same period in 2025.
Across Riverside County, taxable sales, excluding anomalies, increased by 2.7% compared to the same period last year, while sales tax across Southern California increased by 4.0%.
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: BRUCE FOLTZ, FINANCE DIRECTOR
REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – City of Corona 2026 Q1 Sales Tax Update Newsletter
2. Exhibit 2 – HdL California Consensus Forecast Report June 2026