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Q2 2022
Q2 2023
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$200,000
$400,000
$600,000
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$1,200,000
SALES TAX BY MAJOR BUSINESS GROUP
General
Consumer
Goods
Restaurants
and
Hotels
Business
and
Industry
Autos
and
Transportation
Building
and
Construction
Food
and
Drugs
Fuel and
Service
Stations
County
and State
Pools
TOP 25 PRODUCERSCULVER CITY DISTRICT TAXES HIGHLIGHTS
Published by HdL Companies in Fall 2023
DISTRICT TAXES
CITY OF CULVER CITY
2Q 2023 (APRIL - JUNE)
Amazon Fulfillment
Services
Amazon MFA
Arco
Best Buy
Bestbuy Com
Costco
Culver City Toyota
Culver19
Etta Culver City
Howard Industries
In N Out Burger
JC Penney
Kia Downtown LA
Macy’s
Nordstrom Rack
Ralphs
Ross
Sephora
Target
Tesla Motors
TJ Maxx
Trader Joe’s
Uber Eats
Vons
Wolfgang Puck Catering
& Events
Culver City’s ½-cent Measure CC gross
receipts from April through June were
1.5% below the second sales period
in 2022. However, after adjusting for
reporting modifications such as audit
adjustments and delayed payments,
actual sales were down 6.5%. Results for
¼-cent Measure C were almost the same
– with slight variations from statewide
audit corrections and a small number
of taxpayer filing discrepancies. Overall,
quarterly results were mixed.
Cautious consumers pulled back on
retail purchases – with declines in
most sectors, including apparel and
electronics-appliance stores. Large
medical/biotech payments made a year
ago generated most of the comparative
decrease from the business-industry
group; however, sales in other segments
such as office supplies-furniture and
office equipment slumped.
Continued fluctuations in fuel pricing
and changes in consumption drove
service station revenues down 27.4%.
Reduced lumber pricing contributed to a
drop in building materials returns.
On the positive, both district taxes
reflected stable new car buying
by residents – helping the auto-
transportation group edge into positive
territory. Restaurants-hotel revenues
jumped as people continued to enjoy the
experience of casual and fine dining – as
well as food delivery-catering services.
Net of adjustments, taxable sales for all
of Los Angeles County declined 4.2%
over the comparable time period; the
Southern California region was down
2.9%.
-6.5% -6.5%
2Q2023
Measure C - 0.25%
TOTAL: $ 1,371,2662Q2023
Measure CC - 0.50%
TOTAL: $ 2,744,845
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '23*
Culver City Measure CC
Business Type
HdL State
Change Change
397.6 -8.6% -2.8%Discount Dept Stores
217.2 15.9% 9.3%Casual Dining
151.6 2.3% 0.1%New Motor Vehicle Dealers
133.8 -28.6% -19.4%Service Stations
122.2 -5.1% 11.8%Electronics/Appliance Stores
112.2 2.5% -2.2%Specialty Stores
104.2 5.5% 5.1%General Merchandise
100.0 3.3% 2.3%Quick-Service Restaurants
98.4 -3.5% -0.9%Family Apparel
88.7 14.9% 4.2%Grocery Stores
*In thousands of dollars
REVENUE BY BUSINESS GROUP
Culver City Measure CC This Fiscal Year*
5%
Food/Drug
5%
Fuel
17%
Restaurants
9%
Autos/Trans.
7%
Building
13%
Bus./Ind.
45%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
CULVER CITY DISTRICT TAXES UPDATE 2Q 2023
STATEWIDE RESULTS
California’s local one cent sales and use tax
receipts for sales during the months of April
through June were 2.8% lower than the
same quarter one year ago after adjusting
for accounting anomalies. The second
quarter of the calendar year was impacted
by continued wet weather and a difficult
comparison with the prior year, which
experienced dramatic growth.
The fuel-service stations sector contributed
the most to this decline as year-over-year
(YOY) falling fuel prices at the pump reduced
receipts from gas stations and petroleum
providers. Russia’s invasion of Ukraine and
other world events during this period last
year, pushed the global cost of crude oil
to record highs. This dynamic also carried
into general consumer goods as retailers
selling fuel experienced a similar drop.
Recently, OPEC and Russia have maintained
production cuts having upward pressure on
pricing again leading to future comparative
growth.
Sustained wet conditions further delayed
projects, especially those from the prior
quarter, hindering building-construction
returns. YOY lumber price declines added
to the pull back from building materials
providers. Higher interest rates represent a
significant headwind for the industry with
potential impacts of limited commercial
development activity, slowing public
infrastructure projects and homeowners left
unable to access equity for renovations.
Despite a significant increase in new
car registrations, revenue from autos-
transportation fell by 1.4%. The improved
activity can largely be attributed to rental
car agencies restocking their fleets.
However, these are wholesale transactions
with sales tax charged upon rental of these
vehicles. Weak demand for recreational
vehicles, boats and motorcycles coupled
with elevated overall financing costs remain
challenges going forward.
Use taxes remitted via the countywide
pools decreased 0.75%, marking the third
consecutive quarter of decline. While
overall online sales continue to rise, pool
collections dropped with the offsetting effect
of more in-state fulfillment generated at
large warehouses and through existing retail
outlets allocated directly to local agencies.
Restaurant sales were a bright spot as the
summer season began. Although menu prices
have flattened after a year of sharp gains,
patrons are making more restaurant trips
and are favoring spending their disposable
income on experiences. Better sales by office
material suppliers and enhanced investments
of warehouse-farm-construction equipment
contributed to improved returns for the
business-industry category.
Sales tax for the remainder of 2023 appears
likely to follow the recent trend of moderate
declines before leveling off in early 2024.
Cooling consumer confidence and greater
pressure on household budgets may lead to a
lackluster upcoming holiday shopping period.
Furthermore, the possibility of a longer and
more pronounced slowdown in economic
activity exists as the Federal Reserve
considers additional interest rate increases to
combat high prices that are already stretching
consumer wallets.