CITY OF PLACENTIA
SALES TAX UPDATE
3Q 2023 (JULY - SEPTEMBER)
PLACENTIA
TOTAL: $ 1,922,470
-11.4% -1.1% -1.6% 0
3Q2023 © COUNTY co STATE
*Allocation aberrations have been adjusted to reflect sales activity $450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$o
Business
and
Industry
Autos
and
Transportation
SALES TAX BY MAJOR BUSINESS GROUP
Fuel and
Service
Stations
County
and State
Pools
Restaurants
and
Hotels
1 1
General
Consumer
Goods
Building
and
Construction
Food
and
Drugs
Legend
Q3 2022*
• Q3 2023*
Measure U
TOTAL: $2,223,753
© -4.2%
CITY OF PLACENTIA HIGHLIGHTS
Placentia's receipts from July through
September were 11.9% below the
third sales period in 2022. Excluding
reporting aberrations, actual sales
were down 11.4%.
High interest has created weakening
affordability, putting a damper on
revenue from auto -transportation.
Several store closures have had a
negative impact on totals from general
consumer goods.
The business -industry sector slumped
in the third quarter of 2023, as new
orders stalled after over production in
2022.
Receipts from fuel -service stations
declined as prices at the pump were
significantly lower than in 3Q22.
Customers are choosing to dine out
www.hdlcompanies.com 1 888.861.0220
less often, as service charges and menu
price increases caused restaurants
checks to soar.
Revenue from food -drugs dipped as
shoppers look for ways to save.
The building -construction group
reported a positive upturn in revenue
in the third quarter.
The City's share of the countywide
use tax pool decreased 12.2% when
compared to the same period in the
prior year. Measure U, the City's
voter approved transactions -use tax,
brought in an additional $2,223,753 in
revenue.
Net of aberrations, taxable sales for
all of Orange County declined 1.1%
over the comparable time period; the
Southern California region was down
1.4%.
TOP 25 PRODUCERS
76 Arco AM PM
Audi North Oc
Beacon Sales
Acquisition
Bejac
Best 4 Less 76
Chevron
CVS Pharmacy
Del Taco
Fairway Ford Sales
Lennox Industries
Lx Hausys America
Marshalls
Mason West
Nickey Petroleum
Print & Finishing
Solutions
Prosource of North
Orange County
Ralphs
Roofing Wholesale
Ross
SC Motors
Schorr Metals
Stater Bros
Suburban Propane
HdL° Companies
Published by HdL Companies in Winter 2024
3Q 2023
CITY OF PLACENTIA SALES TAX UPDATE
STATEWIDE RESULTS
California's local one cent sales and use
tax receipts for sales during the months of
July through September were 1.6% lower
than the same quarter one year ago after
adjusting for accounting anomalies. The
third quarter of the calendar year continued
with a challenging comparison to prior year
growth and stagnating consumer demand
in the face of higher prices of goods.
Fuel and service stations contributed the
greatest overall decline as lower fuel prices
at the pump reduced receipts from gas
stations and petroleum providers. While
global crude oil prices have stabilized, they
remained 15% lower year -over -year. This
decline also impacted the general consumer
goods category as those retailers selling
fuel experienced a similar drop. Despite
OPEC and Russia production cuts having
upward pressure on pricing, global demand
during the winter months has softened.
Along with merchants selling gas, many
other general consumer categories
were also down from the 2022 quarter,
confirming consumers pulling back
on purchases. Home furnishings and
electronic -appliances were a couple of the
largest sectors with the biggest reductions.
As inflation and higher prices were the
main story a year ago, currently it appears
to be a balancing act between wants and
needs, leaving meek expectations for the
upcoming holiday shopping season.
Even following a long, wet first half of 2023,
spending at building and construction
suppliers moderately slowed. The current
high interest rate environment did not help
the summer period and still represents the
largest potential headwind for the industry
with depressed commercial development,
slowing public infrastructure projects
and new housing starts waiting for more
profitable financial conditions.
Despite continued increases of new car
registrations, revenue from the autos -
transportation sector slipped 2.6%. The
improved activity remains mostly attributed
to rental car agencies restocking their fleets.
Like other segments, elevated financing costs
are expected to impede future retail volume.
Use taxes remitted via the countywide
pools dipped 3.0%, marking the fourth
consecutive quarter of decline. While
overall online sales volume is steady, pool
collections dropped with the offsetting
effect of more taxes allocated directly
to local agencies via in-state fulfillment
generated at large warehouses and through
existing retail outlets.
Restaurants remained an economic bright
spot through summer exhibiting a 2.6% gain.
As tourism, holiday and business travel are
all expected to have recovered in 2024, the
industry is bracing for implementation of AB
1228 - new CA law setting minimum wages
for 'fast food restaurants'.
With one more quarterly result to go in
2023, the recent trend of a moderate decline
appears likely before a recovery in 2024.
Initial reports from the holiday shopping
season reflect a 3% bump in retail sales
compared to 2022. Lingering consumer
confidence may have also received welcome
news as the Federal Reserve considers
softening rates by mid -2024.
REVENUE BY BUSINESS GROUP
Placentia This Quarter*
Food/Drug
5%
Cons.Goods
7%
Bus./Ind.
18%
Building
7%
Fuel
17%
Pools
15%
Restaurants
14%
Autos/Trans.
18%
*ADJUSTED FOR
ECONOMIC DATA
TOP NON -CONFIDENTIAL BUSINESS TYPES
Placentia
Business Type
Service Stations
Quick -Service Restaurants
Casual Dining
Contractors
Building Materials
Heavy Industrial
Family Apparel
Grocery Stores
Auto Repair Shops
Office Supplies/Furniture
Q3 '23*
236.5
118.0
110.6
64.4 61.0
56.5 55.6
48.6 43.2
41.0 *Allocation aberrations have been adiusted to reflect sales activity *In thousands of dollars County HdL State
Change Change Change
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2.3%© 3.7%© 2.7%©
-15.9%© 2.5%© 2.8%©
14.7%© -6.0%©-1.1%©
7.3%© -1.8%e -2.7%©
-18.4%e-7.8%e -6.1%
9.7%© -4.1%© 3.1%0
1.1%0 2.8%© 2.3%©
1.2%© 1.5%O -1.0%©
221.4%©-5.3%Ip -2.1%©