www.hdlcompanies.com | 888.861.0220
Q3 2021*
Q3 2022*
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
Business
and
Industry
Food
and
Drugs
Autos
and
Transportation
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Winter 2023
Ace Hardware & Garden
Beverage Plus Foods
Cigarette Payless
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
United Petrol
Valley Pacific Petroleum
Services
Village Sport & Cycle
Walgreens
Wyckoff Plumbing
SALES TAX UPDATE
CITY OF FORTUNA
3Q 2022 (JULY - SEPTEMBER)
Fortuna’s receipts from July through
September were 12.6% below the third
sales period in 2021. Excluding reporting
aberrations, actual sales were down
6.6%.
Sales weakened in multiple sectors due
to pricing pressures on essentials such
as food and fuel as Fed policy makers
take action to cool consumer demand.
Compared to last year, the countywide
pool reported lower sales. General
consumer goods sales had another
quarter of sluggish sales including in
electronics/appliance purchases.
The business-industry group sales
suffered as garden/ag suppliers didn’t
see the same level of sales as last year
with stimulus dollars available. Drought
conditions and small ag operators are
making tough decisions as higher input
costs affect operations.
Recent reports indicate some slowdown
in restaurant visits with consumer
concerns about inflation impacting their
spending choices.
Voter approved Measure E’s collected
fewer receipts on vehicles purchased
and registered within the city, garden/
ag supplies and visits to quick service
restaurants.
Net of aberrations, taxable sales for the
Far North region was up 0.9%.
TOTAL:
-7.2%
$492,750
Measure E
TOTAL: $ 567,465
-6.6% -6.9% 8.0%
COUNTY STATE
FORTUNA
3Q2022
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q3 '22
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 69,702 -10.0% -3.5% 18.5%
Casual Dining 48,080 4.4% -2.1% 10.3%
Automotive Supply Stores 33,995 -3.8% -5.6% 5.3%
Contractors 27,990 -3.9% -10.6% 15.5%
Garden/Agricultural Supplies 24,849 -26.1% -26.7% -2.2% Quick-Service Restaurants 22,559 -8.7% -7.6% 3.9%
Convenience Stores/Liquor 14,335 -11.4% -9.8% 2.0%
Electronics/Appliance Stores 14,263 -12.3% -15.1% 3.7%
Auto Repair Shops 13,725 3.3% -10.1% 10.7%
Second-Hand Stores 2,233 -10.9% -1.4% -9.1%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Fortuna This Quarter*
18%
Pools
13%
Restaurants
11%
Autos/Trans.
14%
Building
11%
Bus./Ind.
8%
Cons.Goods
11%
Food/Drug
15%
Fuel
*ADJUSTED FOR
ECONOMIC DATA
3Q 2022 CITY OF FORTUNA SALES TAX UPDATE
STATEWIDE RESULTS
Local one cent sales and use tax for sales
occurring July through September was 8%
higher than the same quarter one year ago
after adjusting for accounting anomalies
and back payments from previous quarters.
These returns mark another strong period
of growth for the California spending
economy.
Even as the Federal Reserve Board
continued ramping up interest rates in
an effort to curb the larger concern of
inflation, consumers maintained purchases
on multiple fronts, especially automobiles.
Surprisingly, new car dealers experienced
10% gains over the comparable period
in 2021. Limited inventory and demand
for higher mileage vehicles including
electric and hybrid models helped support
growth. In addition, the increased cost of
used vehicles has pushed many into the
new vehicle market; in contrast, sales of
recreation vehicles and auto leasing activity
remained soft.
For Californians, the summer of 2022
had the highest gas prices on record;
subsequently fuel and service stations
receipts jumped 21%. Commuters and
summer travel remained steady, yet overall
consumption still trails pre-pandemic
levels by approximately 13%. Although the
Russia-Ukraine conflict initially caused a
dramatic shift in global crude oil markets,
prices have begun to pull back closer to
historical norms.
Restaurants experienced a strong uptick as
increased menu prices, consistent desire to
dine out and strong tourism contributed
to this favorable news. Just as important,
theme parks, leisure-entertainment venues
and hotels pushed positive momentum
back to 2019 levels. With tightening profit
margins and sustained labor concerns,
future improvement could be slowed
compared to the last two years.
Busy contractors and plumbing-electrical
suppliers boosted the building-construction
sector. Solid residential and commercial
housing prices persisted despite recent
interest rate hikes. Tenant improvements
further support spending activity as
businesses assess future office needs.
With statewide new housing requirements
and federal infrastructure funding on the
horizon, current forecasts stay optimistic.
Steady investment in capital equipment
coupled with the overall increased price of
goods enhanced both business-industry and
countywide use tax pool allocations.
For the second straight quarter, fuel sales
linked to discount department stores
propped up general consumer goods
results. Otherwise, retailers experienced
flat to decreased receipts as many apparel
categories, home furnishings and sporting
goods struggled to keep pace with the
prior year. As consumers balanced summer
opportunities and higher prices, in-store
shopping appears to have taken a temporary
back seat.
Sustained price increases and interest
rate hikes certainly have consumers
contemplating where to spend their
dollars. However, historically low statewide
unemployment rates and the recovery of the
national stock markets from declines earlier
this year leave modest optimism heading
into 2023.