City of San Leandro
Sales Tax Update
T h o m a s A d a m s D e c e m b e r 1 3 , 2 0 2 2
Sales Tax
Performance & Comparisons
6 Top 25 Sales Tax Producers
(~ 48% of total sales tax from local businesses)
1 American Emperor Pacific Pride
Arco AM/PM Peterson Power Systems
Beacon Roofing Supply Peterson Tractor Company
Chevron Peterson Trucks
Consolidated Electrical Distributors San Leandro Chrysler Jeep Dodge Ram Costco Wholesale San Leandro Honda
Edges Electrical Group San Leandro Hyundai/Kia
F H Dailey Chevrolet Target Stores
Ferguson Enterprises The Ford Store
Foundation Building Materials Trayer Engineering Corporation Home Depot Walmart Stores
Independent Electrical Supply Wine.Com
NorCal Kenworth
Top 25 by Sales Tax Category
Transportation - 9
• 5 Auto Sales – New, 3 Service Stations, 1 Misc.
Vehicle Sales
General Retail – 3
• 3 Department Stores
Construction - 7
• 6 Build Mat Wholesale, 1 Build Mat – Retail
B2B - 5
• 2 Heavy Industry, 2 Electronic Equipment, 1 I.T.
Infrastructure
Food Products - 1
• 1 Liquor Store
2 City of San Leandro
Local Business Sales Tax Drivers
3 Primary Drivers
• Retail: 25%
• Business to Business: 22%
• Construction: 21%
• Transportation (Auto Sales & Gas Stations): 19%
• Food (Markets & Restaurants): 12%
Others
• Miscellaneous: 1%
San Leandro 1% Sales Tax Performance –
Local Businesses and Net Pools
4 San Leandro - County Pool/Admin/Adjustments
5 San Leandro – Q2 Economic Performance
6 San Leandro – BayFair Mall Performance
7 San Leandro – Westgate Center Performance
8 San Leandro – Downtown Performance
9 Sales Tax Future?
12 San Leandro 1% Sales Tax Forecast
10 San Leandro 1% Sales Tax Forecast
10 San Leandro 1/2% ‘Add-on’ Sales Tax Forecast
11 Sales Tax Forecast – Stormy Weather
12 • Economic conditions have greater than usual levels of uncertainty. • Greater uncertainty translates to greater potential variance for the forecast in upcoming years.
• Some of the areas of uncertainty include:
➢ How will gas prices adjust over the next several years? ➢ How long/how much will inflation impact the economy?
➢ How will consumer behavior adjust to inflation & interest rates? ➢ How will Fed interest rate adjustments affect economy? ➢ When will supply chains become ‘fixed’?
➢ How will Ukraine war impact energy & supply chains?
➢ When will we achieve ‘new normal’ & what will it look like? ➢ What does virus/pandemic future hold?
➢ Does a recession/downturn loom somewhere on the horizon? 13 Legislative Activity – Session Highlights
• Inflation Relief Program is Governor’s initiative to provide direct payments to taxpayers instead of freezing or temporarily eliminating gas tax • AB 1951 (Grayson) – a bill to expand the exemption for research and development and manufacturing equipment was vetoed by the Governor • SB 852 (Dodd) Climate Change Resilience District – new environmental program expansion of Enhanced Infrastructure Finance District program • Various land use related bills with expedited approvals for housing projects passed – reduces local land use controls
• Governor will host special session on Oil and Gas Windfall Profits to start concurrent with new legislative session
18 Thank you…Questions?