www.hdlcompanies.com | 888.861.0220
Q2 2024*
Q2 2025*
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
Business
and
Industry
Fuel and
Service
Stations
Building
and
Construction
Restaurants
and
Hotels
Autos
and
Transportation
Food
and
Drugs
General
Consumer
Goods
CITY OF FORTUNA HIGHLIGHTS TOP 25 PRODUCERS
Published by HdL Companies in Fall 2025
Ace Hardware & Garden
Cigarette Payless
Dollar General
Eel River Brewing
Forbusco Lumber
Fortuna Chevron
Fortuna Liquors
Friesen Design Build
Grocery Outlet
Hummel Tire & Wheel
Les Schwab Tire Center
McDonald’s
Mercer Fraser
O’Reilly Auto Parts
Peterson Tractor
Ray’s Quality Cars
Rohnerville Chevron
Safeway
Shell
Sunbelt Rentals
Tractor Supply
Valley Pacific Petroleum
Services
Village Sport & Cycle
Walgreens
Wyckoff Plumbing
SALES TAX UPDATE
CITY OF FORTUNA
2Q 2025 (APRIL - JUNE)
Fortuna’s gross receipts from May –
June 2025 was flat compared to the
second sales period in 2024. After
adjusting for reporting modifications
from audit adjustments and delayed
payments, actual sales were 1.4%
lower. 2025 sales tax returns remain
modest, reflecting broader economic
volatility.
The largest tax group of the quarter
realized 7.3% growth as the City’s
allocation from the countywide
use-tax pool jumped, largely due
to a surge in ecommerce revenues.
Autos-transportation related receipts
edged higher. While results were
varied across sectors, general retail
improved slightly.
Conversely, business-industry
returns dropped 6.2% during the
spring months. The fluctuating price
of crude oil, and resulting lower gas
prices, caused fuel-service station
receipts to slide 12.2%. Contractor
returns were positive, yet other
building-construction returns pulled
down results. All segments of the
food-drugs group fell.
Voter-approved Measure E ended
better, with some one-time use tax
and a new taxpayer in the farm/
construction equipment sector lifting
overall outcomes and offsetting
declines in auto purchases by locals.
Net of adjustments, taxable sales for
all of Humboldt County declined 2.1%
over the comparable time period; the
Far North region was down 2.6%.
TOTAL:
2.7%
$503,405
Measure E
TOTAL: $ 551,343
-1.4% -2.1% 0.5%
COUNTY STATE
FORTUNA
2Q2025
TOP NON-CONFIDENTIAL BUSINESS TYPES
Q2 '25
Fortuna
Business Type Change Change Change
County HdL State
Service Stations 58,139 -14.2% -8.7% -9.4%
Casual Dining 42,290 0.6% -3.5% 1.4%
Automotive Supply Stores 30,467 -1.1% -4.2% -3.5%
Contractors 24,522 4.5% -3.4% -0.9%
Quick-Service Restaurants 23,630 -2.8% 1.8% -0.7%
Auto Repair Shops 13,925 -0.1% -3.9% -8.9%
Electronics/Appliance Stores 10,990 8.0% 3.2% 6.8%
Second-Hand Stores 4,015 24.0% 7.2% -0.4%
Government/Social Org. 664 -1.4% -4.5% -18.1%
Receivables/Master Outlets 357 -33.2% 23.5% 25.6%
*Allocation aberrations have been adjusted to reflect sales activity
REVENUE BY BUSINESS GROUP
Fontana This Fiscal Year*
4%
Food/Drug
10%
Fuel
14%
Pools
9%
Restaurants
28%
Autos/Trans.
9%
Building
13%
Bus./Ind.
13%
Cons.Goods
*ADJUSTED FOR
ECONOMIC DATA
2Q 2025 CITY OF FORTUNA SALES TAX UPDATE
STATEWIDE RESULTS
California’s one-cent local sales and use tax
receipts rose 0.6% in Q2 compared to the
same period last year, after adjusting for
accounting anomalies. While only modest
growth, it is the second consecutive quarter
experiencing positive results following an
extended timeline of declines. This period
is traditionally met with improved weather
with the beginning of summer activity.
Steady gains in both business-industry and
countywide use tax pools were driven by
strong online sales, reflecting shopper’s
willingness and ability to spend. Whether
pulled from inventory within California or
shipped from outside the state, demand
for goods by value-conscious shoppers
prevailed. Other notable upticks came
from purchases of office and electrical
equipment.
Increased tax receipts from restaurants
also demonstrated diners continued
desire to eat out. Even amongst higher
menu prices and tip fatigue, casual dining
establishments generated the largest lift.
While this is a good sign for the coming
summer season, underlying data shows
that disposal personal income – a key driver
of restaurant sales – is growing at a slower
pace than prior years, possibly signaling
softer tax growth on the horizon.
The two sectors primed to take advantage
of upcoming interest rate changes, autostransportation and building-construction, only experienced lackluster returns this
period. New auto sales declined, offsetting
gains in used vehicles and leasing, while
building material sales remained unchanged
from a year ago. However, aging vehicles
and deferred home improvements remain
a potential catalyst driving demand in the
near term.
Balancing the positive results, revenue
from fuel and service stations declined for
the ninth time in ten quarters, primarily
due to West Texas Intermediate (WTI) low
crude oil prices. As the global economy and
development remains tempered, so has the
demand for oil, leaving prices relatively low.
While this dampens sales taxes, lower fuel
costs during peak travel months may boost
spending in other segments.
Traditional retailers saw a 1% decline, with
specialty, sporting goods, and department
stores under performing compared to year
ago totals. Inflation and tariffs continue to
pressure consumer spending and retailer
margins, prompting reevaluation of physical
store investments by regional and national
companies alike.
The September reduction in the federal
funds rate, noting the possibility of more in
early 2026, leaves optimism regarding future
financing and accessing equity opportunities
for some consumers. However, national
tariff/trade talks remain a vital piece of
the inflation/higher prices story with the
potential of diminishing spending power. So
sluggish calendar year 2025 continues with
only modest expansion expected braced
against the ever-changing larger economic
trends.