www.hdlcompanies.com | 888.861.0220
Q1 2022*
Q1 2023*
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$0
$20,000
$40,000
$60,000
$80,000
$100,000
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 Summer 2023
Ace Hardware & Garden
Beverage Plus Foods
Dollar General
Eel River Brewing
Forbusco Lumber
Fortuna Chevron
Fortuna Gas 4 Less
Grocery Outlet
Hummel Tire & Wheel
Les Schwab Tire Center
McDonald’s
Mercer Fraser
Olson Manufacturing
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
1Q 2023 (JANUARY - MARCH)
Fortuna’s cash receipts from January
through March were 6.2% below the
first sales period in 2022. However, after
adjusting for reporting modifications
such as audit adjustments and delayed
payments, net revenues were 5.1%
lower than a year ago. Sales weakened
as the uncertain economic outlook likely
influenced spending choices.
Demonstrating growth for the quarter,
patrons continued to favor the
convenience of casual and quick-service
dining, boosting restaurants-hotels
receipts. The business-industry group
realized a slight decline in gardenagricultural related purchases, but other categories helped pull the group up 12%.
Conversely, general retail felt the sting
of less consumer spending – as did the
countywide use tax pool. The City’s pool
allocation slipped 4.7% as ecommerce
and third-party auto sales declined.
Falling fuel prices pushed service station
revenues down 19%; and the autostransportation group also slumped, with the only growth occurring in auto repair
shop sales. Building-construction receipts
were likely impacted by the wet winter
and statewide lumber prices falling 64%.
Voter-approved Measure E results were
similar with the largest gains in businessindustry and biggest declines in fuelservice stations. Net of adjustments, taxable sales for the Far North region
was down 8.1% over the comparable
time period.
TOTAL:
-6.3%
$440,761
Measure E
TOTAL: $ 491,051
-5.1% -7.4% -1.1%
COUNTY STATE
FORTUNA
1Q2023
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '23
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 52,436 -23.0% -20.3% -9.8%
Casual Dining 43,480 0.5% -4.5% 9.7%
Automotive Supply Stores 28,279 -2.6% -3.1% 5.4%
Quick-Service Restaurants 23,195 18.8% 2.6% 5.1%
Garden/Agricultural Supplies 22,324 -9.1% -26.4% -18.9% Contractors 15,467 -22.8% -30.1% -12.7%
Auto Repair Shops 13,253 4.8% -5.9% 5.7%
Convenience Stores/Liquor 12,944 -2.6% -8.7% -5.0%
Electronics/Appliance Stores 11,419 -13.6% 1.4% -2.4%
Second-Hand Stores 2,236 13.9% 8.1% -3.3%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Fortuna This Quarter*
19%
Pools
14%
Restaurants
11%
Autos/Trans.
11%
Building
12%
Bus./Ind.
8%
Cons.Goods
11%
Food/Drug
14%
Fuel
*ADJUSTED FOR
ECONOMIC DATA
1Q 2023 CITY OF FORTUNA SALES TAX UPDATE
STATEWIDE RESULTS
California’s local one cent sales and use
tax receipts for sales during the months
of January through March were 1.1%
lower than the same quarter one year ago
after adjusting for accounting anomalies.
The first quarter of the calendar year
experienced heavy rainfall and a slight
pullback by consumers during this postholiday period.
The building and construction sector
was most impacted by wet weather
conditions, especially contractors and
paint/glass vendors. Furthermore, when
coupled with year-over-year (YOY)
lumber price declines, the sector saw a
9.7% statewide drop.
YOY declines in fuel prices at the pump
reduced receipts from gas stations and
petroleum providers. Even with OPEC’s
recent production cuts, the global cost of
crude oil has remained steady setting up
for moderate gas prices for travelers and
commuters in the coming summer months.
Retailers also selling fuel experienced a
similar impact and when combined with
weak results from department stores,
overall general consumer goods’ returns
slightly declined.
After multiple years of high demand
for vehicles (especially high-end luxury
and electronic/hybrid brands), along
with inflation driving car prices higher,
customers demand has softened with
revenue slumping 1.3%. The return of
available inventory later this calendar
year may sustain downward pressure on
activity, potentially giving buyers more
leverage to negotiate lower prices.
Use taxes remitted via the countywide
pools decreased 1.1%, marking the
second consecutive quarter of decline.
Cooling consumer confidence, expansion
of more in-state fulfillment centers and
retailers using existing locations to deliver
goods tied to online orders continue to
shift taxes away from the pools. While the
offsetting effect was these revenues being
allocated directly to jurisdictions where
the goods were sourced, only a limited
number of agencies benefited.
Spending at local restaurants and hotels
continues to be robust. Patrons were
unaffected by increased menu prices and
wait times and maintained their willingness
to dine out. In addition, investments in
warehouse/farm/construction equipment
was steady.
For the remainder of 2023 sales taxes may
decrease modestly, then begin a nominal
recovery in early 2024. Volatile economic
indicators such as the Federal Funds rate,
unemployment levels, and discretionary
spending will influence outcomes. While it
appears the Federal Reserve’s actions to
fight inflation is taking effect, any lasting
downward pressure on consumer pricing
could also hinder short term growth.