Q1 2022*
Q1 2023*
Legend
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
*Allocation aberrations have been adjusted to reflect sales activity Food
and
Drugs
Fuel and
Service
Stations
Building
and
Construction
Autos
and
Transportation
Business
and
Industry
Restaurants
and
Hotels
General
Consumer
Goods
TOP 25 PRODUCERSCULVER CITY DISTRICT TAXES HIGHLIGHTS
Published by HdL Companies in Summer 2023
7 Eleven
Amazon Fulfillment
Services
Amazon MFA
Arco
Best Buy
Best Buy Com
Costco
Culver City Toyota
Culver 19
Dept of Motor Vehicles
Allocation
Etta Culver City
Hatchet Hall
Howard Industries
In N Out Burger
JC Penney
KIA
Macy’s
Nordstrom Rack
Sephora
Target
Tesla Motors
TJ Maxx
Trader Joe’s
Uber Eats
Vons
DISTRICT TAXES
CITY OF CULVER CITY
1Q 2023 (JANUARY - MARCH)
Culver City district tax receipts
from January through March were 5.6%
below the first sales period in 2022 for
Measure CC and 2.9% lower for
Measure C.
These two tax measures typically
track closely. The difference in the
year over year percentage change
came from statewide audit
corrections and a small number of
taxpayer filing discrepancies in the
current and prior year quarters.
The comparative decrease in
the business-industry group was
mostly generated by the
exceptionally large medical/biotech
payments received last year. Office
equipment sales also slumped. Early
2022 saw extraordinary surges in fuel
and construction product prices; as
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these spikes subsided, service stations,
building materials and plumbing/
electrical suppliers remitted fewer taxes.
Consumers,
leery of w here the U.S.
economy is headed, reduced general
consum
er goods purchases. As a result,
transact
ions fell in the electronics/
appliances, home furnishings,
department and shoe store sectors.
In contrast
to Bradley-Burns sales
tax, both measures posted strong car
buying by residents. New motor
vehicle gains were supported by the
recent opening of a high-volume
regional serving dealership in a
neighboring jurisdiction.
Eating-related activities remained
favorable; casual dining and food
delivery accounted for the bulk of
growth by restaurants-hotels.
TOTAL:
-5.6%
$2,562,224
Measure CC
MEASURE CC - 0.50%
TOTAL: $ 2,562,224
-5.6%
1Q2023
MEASURE C - 0.25%
TOTAL: $1,316,651
-2.9%
1Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '23*
Culver City Measure CC
Business Type
HdL State
Change Change
395.1 1.5% -0.6%Discount Dept Stores
195.6 8.9% 9.6%Casual Dining
159.7 25.4% 0.7%New Motor Vehicle Dealers
124.7 -15.2% -9.8%Service Stations
122.1 -10.3% -2.4%Electronics/Appliance Stores
99.1 6.1% 3.7%Specialty Stores
98.0 1.9% 11.8%General Merchandise
89.6 -5.8% 5.1%Quick-Service Restaurants
87.0 3.9% 2.3%Family Apparel
78.4 -2.2% -6.9%Department Stores
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars
REVENUE BY BUSINESS GROUP
Culver City Measure CC This Quarter*
5%
Food/Drug
5%
Fuel
19%
Restaurants
10%
Autos/Trans.
6%
Building
13%
Bus./Ind.
43%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
CULVER CITY DISTRICT TAXES UPDATE1Q 2023
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months
of January through March were 1.1%
lower than the same quarter one year ago
after adjusting for accounting anomalies.
The first quarter of the calendar year
experienced heavy rainfall and a slight
pullback by consumers during this post-
holiday period.
The building and construction sector
was most impacted by wet weather
conditions, especially contractors and
paint/glass vendors. Furthermore, when
coupled with year-over-year (YOY)
lumber price declines, the sector saw a
9.7% statewide drop.
YOY declines in fuel prices at the pump
reduced receipts from gas stations and
petroleum providers. Even with OPEC’s
recent production cuts, the global cost of
crude oil has remained steady setting up
for moderate gas prices for travelers and
commuters in the coming summer months.
Retailers also selling fuel experienced a
similar impact and when combined with
weak results from department stores,
overall general consumer goods’ returns
slightly declined.
After multiple years of high demand
for vehicles (especially high-end luxury
and electronic/hybrid brands), along
with inflation driving car prices higher,
customers demand has softened with
revenue slumping 1.3%. The return of
available inventory later this calendar
year may sustain downward pressure on
activity, potentially giving buyers more
leverage to negotiate lower prices.
Use taxes remitted via the countywide
pools decreased 1.1%, marking the
second consecutive quarter of decline.
Cooling consumer confidence, expansion
of more in-state fulfillment centers and
retailers using existing locations to deliver
goods tied to online orders continue to
shift taxes away from the pools. While the
offsetting effect was these revenues being
allocated directly to jurisdictions where
the goods were sourced, only a limited
number of agencies benefited.
Spending at local restaurants and hotels
continues to be robust. Patrons were
unaffected by increased menu prices and
wait times and maintained their willingness
to dine out. In addition, investments in
warehouse/farm/construction equipment
was steady.
For the remainder of 2023 sales taxes may
decrease modestly, then begin a nominal
recovery in early 2024. Volatile economic
indicators such as the Federal Funds rate,
unemployment levels, and discretionary
spending will influence outcomes. While it
appears the Federal Reserve’s actions to
fight inflation is taking effect, any lasting
downward pressure on consumer pricing
could also hinder short term growth.