www.hdlcompanies.com | 888.861.0220
Q3 2020*
Q3 2021*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity County
and State
Pools
Fuel and
Service
Stations
Building
and
Construction
Restaurants
and
Hotels
Autos
and
Transportation
Food
and
Drugs
Business
and
Industry
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2022
Ace Hardware & Garden
Beverage Plus Foods
Cigarette Payless
Eel River Brewing
Forbusco Lumber
Fortuna Chevron
Fortuna Gas 4 Less
Gary Crivellos Cars
Grocery Outlet
Hummel Tire & Wheel
Les Schwab Tire Center
McDonalds
Mercer Fraser
O’Reilly Auto Parts
Peterson Tractor
Ray’s Quality Cars
Rite Aid
Safeway
Sequoia Gas
Sunbelt Rentals
Tractor Supply
Valley Pacific Petroleum
Services
Village Sport & Cycle
Walgreens
Wyckoff Plumbing
SALES TAX UPDATE
CITY OF FORTUNA
3Q 2021 (JULY - SEPTEMBER)
Fortuna’s receipts from July through
September were 10.8% above the third
sales period in 2020. Excluding reporting
aberrations, actual sales were the same
at 10.8%.
Economic recovery from year-ago
pandemic impacts was evidenced in
quarterly comparisons.
Travelers spent more time on streets
and highways; greater consumption of
gallons at inflated pump prices caused a
43% bounce back in fuel-service stations.
This group also benefited from direct
allocation reporting which commenced
January 2021. Casual diners welcomed
in many more patrons. Quick-service
eateries also reported better sales.
Autos-transportation remitted hearty
returns. Building construction was a
mixed bag; while contractors captured
an 80% surge as summer activity was
booming, demand for higher cost building
materials declined. Cyclically based
sales by garden/agricultural supplies fell
lower which contributed to the overall
reduction by the business-industry
group. Aided by COVID recovery in
general retail, restaurants and resident’s
acquisition of more vehicles,
Measure E posted a solid quarter as
noted in the blue bar figures presented
above.
TOTAL:
6.4%
$522,192
Measure E
TOTAL: $ 603,827
10.8% 4.7% 18.3%
COUNTY STATE
FORTUNA
3Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '21
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 77,402 25.8% 20.2% 53.6%
Casual Dining 45,850 22.4% 40.5% 68.3%
Contractors 37,783 80.5% 17.1% 12.2%
Automotive Supply Stores 35,329 0.9% -2.7% 4.5%
Garden/Agricultural Supplies 26,844 -27.8% -22.1% 1.2%
Quick-Service Restaurants 23,565 15.9% 4.1% 13.5%
Electronics/Appliance Stores 16,221 -3.6% 4.7% 19.7%
Convenience Stores/Liquor 16,166 -1.0% -9.1% -0.3%
Auto Repair Shops 12,579 14.3% 6.6% 15.3%
Specialty Stores 2,665 8.7% 2.8% 21.4%
*Allocation aberrations have been adjusted to reflect sales activity $0
$1,000
$2,000
$3,000
$4,000
Fortuna
Q3
18 Q3
21 Q3
19 Q3
20 County California
SALES PER CAPITA*
*ADJUSTED FOR
ECONOMIC DATA
3Q 2021 CITY OF FORTUNA SALES TAX UPDATE
STATEWIDE RESULTS
Local one cent sales and use tax receipts
for sales occurring July through September
were 18% higher than the same quarter
one year ago after adjusting for accounting
anomalies and back payments from
previous quarters. These aberrations had
been much greater than normal in the last
two years as the Governor’s Executive
Orders allowed businesses to defer some
sales tax payments as a supportive measure
during the pandemic. This program has
now expired, and merchant remittances are
more consistent, making cash receipts more
reflective of underlying economic activity.
The prior year comparison quarter was the
start of the pandemic recovery, and the
strong growth enjoyed since continued
with the recent results.
Surprisingly, one of the stronger sectors
has been restaurants and hotels. Originally
forecasted to take an extended amount
of time to recover, statewide sales tax
generated during the summer months
exceeded amounts from pre-pandemic
2019. Even with the availability of indoor
and outdoor dining, pent up demand
resulted in long wait times to enjoy local
culinary experiences. When combined
with increasing restaurant tabs as the
cost of food and staff wages surge, sales
tax remittances are expected to continue
growing. Additionally, while the industry
awaits the return of foreign tourism in
metropolitan areas, strong domestic travel
has helped varied regions around the state
especially Southern California and the
Central Coast.
Receipts from general consumer goods
marked a steady recovery, led by apparel
retailers, jewelry, electronic/appliance and
specialty outlets. Discount department
stores, especially those selling gas, helped
exemplify the strength of brick-and-mortar
merchants. Gains from the countywide use
tax pools however, slowed to 2% compared
to the high-water mark last year, which
had been boosted by new tax collecting
requirements imposed under AB 147 for
online retailers. All things considered, when
combined with positive economic trends,
these are a welcome sign leading up to the
holiday shopping period.
Although car dealers had expressed
concerns about inventory shortages due
to supply chain disruptions and computer
chip shortages earlier in the year, the sale
of new and used vehicles posted solid gains
regardless. Higher property values and good
weather contributed to strong building
materials and contractor returns. As
commuting workers and travelers returned
to the road with increased gas prices, fuel
and service stations also experienced a
dramatic recovery.
Overall growth is expected to continue
through the end of the 2021 calendar year.
Possible headwinds into 2022 include:
pent up demand for travel and experiences
shifting spending away from taxable goods;
higher prices for fuel, merchandise and
services displacing more of consumer’s
disposable income; and expected interest
rate hikes resulting in more costly financing
for automobiles, homes, and consumer
loans.