www.hdlcompanies.com | 888.861.0220
Q4 2021*
Q4 2022*
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
Restaurants
and
Hotels
Fuel and
Service
Stations
Business
and
Industry
Food
and
Drugs
Building
and
Construction
Autos
and
Transportation
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Spring 2023
Ace Hardware & Garden
Beverage Plus Foods
Cigarette Payless
Dollar General
Dollar Tree
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
Sunbelt Rentals
Tractor Supply
Valley Pacific Petroleum
Services
Village Sport & Cycle
Walgreens
Wyckoff Plumbing
SALES TAX UPDATE
CITY OF FORTUNA
4Q 2022 (OCTOBER - DECEMBER)
Fortuna’s receipts from October through
December were 8.9% below the fourth
sales period in 2021. Excluding reporting
aberrations, actual sales were down 8.2%.
The state-county pools which are the
City’s largest revenue group had negative
collections posting -10.3% returns which
were impacted by diminishing sales in fuelservice stations and autos-transportation categories. The business-industry group
continues to be adversely impacted due to
sluggish garden-agricultural supplies and
warehouse-farm-construction equipment
sales.
General consumer goods saw weak
collections which came from electronicappliance, sporting goods and second-hand stores. In addition, autos-transportation
saw shrinking returns from the automotive
supply stores and other businesses in this
category.
Interest in eating out has led to strong
revenues for the restaurant-hotels group
primarily from quick service restaurants.
Furthermore, the food-drug category
experienced soft collections from drug and
convenience stores.
Measure E, the voter approved transaction
tax receipts experienced similar negative
returns as the City’s Bradley-Burns salesuse tax revenues.
Net of aberrations, taxable sales for all of
Humboldt County declined 5.7% over the
comparable time period; the Far North
region was down 3.6%.
TOTAL:
-6.6%
$474,510
Measure E
TOTAL: $ 551,969
-8.2% -5.7% 4.7%
COUNTY STATE
FORTUNA
4Q2022
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q4 '22
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 56,425 -23.2% -13.1% 7.6%
Casual Dining 42,463 -1.3% -4.2% 8.1%
Quick-Service Restaurants 30,451 25.3% 32.0% 5.7%
Automotive Supply Stores 29,462 -8.8% -9.0% 2.7%
Contractors 21,831 7.3% -8.1% 11.8%
Convenience Stores/Liquor 15,320 -4.1% -13.3% 0.9%
Electronics/Appliance Stores 13,844 -19.1% -5.5% 10.8%
Auto Repair Shops 13,234 5.7% -10.2% 6.3%
Second-Hand Stores 2,154 -0.9% 2.0% -2.5%
Specialty Stores 242 -73.4% -10.3% 2.2%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Fortuna This Calendar Year*
19%
Pools
13%
Restaurants
10%
Autos/Trans.
13%
Building
11%
Bus./Ind.
8%
Cons.Goods
11%
Food/Drug
15%
Fuel
*ADJUSTED FOR
ECONOMIC DATA
4Q 2022 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 4.7%
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,
experienced solid results which lifted
revenue to local agencies across the State.
Overall, general consumer goods
growth was up a meager 1.8%, in large
part from merchants also selling gas
as prices remained elevated over last
year. Otherwise, many brick and mortar
retailers experienced mixed results as the
phenomenal prior year activity made for
an extremely difficult comparison. This was
especially true for jewelry stores receipts
which had soared tremendously after the
pandemic as consumers diversified readily
available cash into other assets.
Commuters and seasonal travelers were
again burdened with gas prices above $5
per gallon in most of the State, leaving fuelservice stations 10% higher than a year ago.
However, this trend did not distract from
spending at local restaurants and hotels.
Increased menu prices and return-to-office
workplaces enhanced gains, with the Bay
Area experiencing it’s greatest amount of
post-pandemic rebound.
Although inventory shortages negatively
impacted unit sales and leasing activity
throughout 2022, year-end returns by new
car dealers, especially high-end luxury and
electronic/hybrid brands, sustained autotransportation sector gains. In contrast, rising interest rates and higher gas prices
pulled trailer-RV revenues lower. Steady
housing demand and pend up construction
projects delayed by supply chain
interruptions have contractors contributing
the majority of growth within the buildingconstruction sector. With rising interest rates tempering selling activity, property
owners are still likely to maintain home
improvement spending.
Use taxes remitted via the countywide
pools rose a scant 0.3%. While national
ecommerce spending behaviors climbed
upward again, expansion of more in-state
fulfilment centers plus retailers using
existing locations to deliver goods tied to
online orders shifted taxes away from pools.
The offsetting effect was these dollars being
directed to local agency’s coffers where
the goods resided. This evolving trend is
anticipated to persistently weaken taxes
coming from the pools in the near term.
Looking back, calendar year 2022 exhibited
a 9.5% surge in tax receipts compared to
2021. Each of the eight major tax categories
all reported greater returns. Most influential
was inflation that drove up prices on
everything from normal daily purchases to
vehicles. Secondarily, all-time peak global
crude oil costs had fuel seller’s payments
skyrocketing.
Heading into 2023, additional interest rate
hikes along with consumer sentiment waning
about the economy foretells minimal change
coming from California’s taxable sales in the
months ahead.