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Q4 2020*
Q4 2021*
Legend
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
SALES TAX BY MAJOR BUSINESS GROUP *Allocation aberrations have been adjusted to reflect sales activity County
and State
Pools
Fuel and
Service
Stations
Restaurants
and
Hotels
Building
and
Construction
Food
and
Drugs
Business
and
Industry
Autos
and
Transportation
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Spring 2022
Ace Hardware & Garden
Beverage Plus Foods
Cigarette Payless
Dollar General
Eel River Brewing
Forbusco Lumber
Fortuna Chevron
Fortuna Gas 4 Less
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
4Q 2021 (OCTOBER - DECEMBER)
Fortuna’s receipts from October through
December were 5.6% above the fourth
sales period in 2020. Excluding late/
deferred payments and other reporting
adjustments, receipts for the period
were down 0.5%.
Local businesses posted an overall
increase of 2.8% this period but changes
in the use tax pool reporting and a drop
in online sales cut the City’s allocation by
more than $15,000 and this pushed total
receipts lower. The business and industry
group’s sales were lower compared to
this time last year when federal stimulus
funds were boosting retail sales.
On a positive note, restaurant and gas
station receipts both posted their 4th
consecutive quarter of double-digit
gains.
Measure E’s results were also lower
as spending on transportation needs
dipped this period along with those from
the construction group. Material prices
declined for most of the quarter before
lumber prices began to rise sharply at
the end of the quarter.
Net of adjustments, taxable sales for all
of Humboldt County declined 2.5% over
the comparable time period while those
of the Far North region were up 2.8%.
TOTAL:
-1.0%
$498,243
Measure E
TOTAL: $ 586,955
-0.5% -2.5% 15.6%
COUNTY STATE
FORTUNA
4Q2021
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '21
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 73,525 20.0% 20.5% 53.8%
Casual Dining 42,833 22.5% 29.8% 66.4%
Automotive Supply Stores 32,310 1.9% 1.2% 10.5%
Garden/Agricultural Supplies 26,597 -14.8% -29.0% 5.7%
Quick-Service Restaurants 24,288 3.6% 3.0% 12.1%
Contractors 22,109 -4.4% -16.0% 5.3%
Electronics/Appliance Stores 17,119 -8.3% -4.2% 8.4%
Convenience Stores/Liquor 15,587 -3.2% -1.5% 2.1%
Auto Repair Shops 12,239 2.1% 1.2% 18.5%
Specialty Stores 2,727 22.0% 4.0% 18.7%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Fortuna This Calendar Year*
14%
Fuel
19%
Pools
11%
Restaurants
10%
Autos/Trans.
13%
Building
12%
Bus./Ind.
8%
Cons.Goods
11%
Food/Drug
*ADJUSTED FOR
ECONOMIC DATA
4Q 2021 CITY OF FORTUNA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months of
October through December were 15% higher
than the same quarter one year ago after
adjusting for accounting anomalies. A holiday
shopping quarter, the most consequential
sales period of the year, and the strong result
was a boon to local agencies across the State.
Consumers spent freely as the economy
continued its rebound from the pandemic
and as robust labor demand reduced
unemployment and drove up wages.
Brick and mortar retailers did exceptionally
well as many shoppers returned to physical
stores rather than shopping online as the
COVID crisis waned. This was especially
true for traditional department stores
that have long been among the weakest
categories in retail. Discount department
stores, particularly those selling gas, family
and women’s apparel and jewelry merchants
also experienced strong sales. Many retailers
are now generating revenue that is nearly
as much, or even higher, than pre-pandemic
levels.
Sales by new and used car dealers were also
much higher than a year ago. The inventory
shortage has resulted in higher prices that
have more than offset the decline in unit
volume in terms of revenue generation for
most dealerships. Restaurants and hotels
were only moderately lower than last
quarter, with both periods being the highest
in the State’s history. Increased menu prices
coupled with robust demand to dine out are
largely responsible for these gains. These are
impressive results for a sector that does not
yet include the positive impact that will occur
later this year as international travel steadily
increases at major airports. Conference
business, an important revenue component
for many hotels, is also still in the early stages
of recovery.
Building material suppliers and contractors
were steady as growing residential and
commercial property values boosted demand,
particularly in the Southern California,
Sacramento and San Joaquin Valley regions.
Although anticipated interest rate increases
by the Federal Reserve could dampen the
short-term outlook for this sector, industry
experts believe limited selling activity will
inspire increased upgrades and improvements
by existing owners. With demand remaining
tight and calls for more affordable housing
throughout the state, the long-term outlook
remains positive.
The fourth quarter, the final sales period of
calendar year 2021, exhibited a 20% rebound
in tax receipts compared to calendar year
2020. General consumer goods, restaurants,
fuel and auto-transportation industries were
the largest contributors to this improvement.
However, the future growth rate for statewide
sales tax revenue is expected to slow markedly.
Retail activity has now moved past the easy
year-over-year comparison quarters in 2021
versus the depths of the pandemic bottom the
year before. Additional headwinds going into
2022 include surging inflation, a dramatic jump
in the global price of crude oil due to Russia’s
war in Ukraine and corresponding monetary
tightening by the Federal Reserve. This is
expected to result in weakening consumer
sentiment and continued, but decelerating,
sales tax growth into 2023.