City of San Leandro
Finance Committee
Q2 Sales Tax Update
Thomas Adams September 25, 2024
2024 Q2 (April – June sales)
Sales Tax Performance
Top 25 Sales Tax Producers (annual thru Q2 2024)
(~ 46% of total sales tax from local businesses)
1 City of San Leandro
Local Business Sales Tax Drivers
2 Primary Drivers
• Retail: 25%
• Business to Business: 22%
• Transportation (Auto Sales & Gas Stations): 21%
• Construction: 17%
• Food (Markets & Restaurants): 14%
Others
• Miscellaneous: 1%
San Leandro 1% Annual Sales Tax Performance –
Local Businesses and Net Pools
3 San Leandro - County Pool/Admin/Adjustments
4 Annual Net Pools Number
Quarterly Pools Number
San Leandro – Q2 Economic Performance
5 Sales Tax Future?
12 San Leandro 1% Sales Tax Forecast
7 San Leandro 1% Sales Tax Forecast
8 San Leandro 1/2% ‘Add-on’ Sales Tax Forecast
9 Sales Tax Forecast – Overcast…
10 • Uncertainty Remains in Overall Economy
• National Economy – Inflation rates have been coming down closer to the Federal Reserve’s desired inflation rate of 2%-ish.
Unemployment has been creeping up and so it is likely the Federal Reserve will cut rates into mid-2025. This should add some energy into the economy.
• California – Population shifts appear to be ending. However, statewide costs remain high for housing, energy, and other essentials. High costs erode some of the consumer capacity for taxable sales.
• After Four Years of Turbulence Related to the Pandemic, when will we Reach the ‘New Normal’?
13 Thank you…Questions?