Avalon sales tax revenues increased significantly during the third-quarter of 2021, the most recent set of sales tax data available, according to a recent report from HdL Companies. The report was dated “Winter of 2022.”
“Avalon’s receipts from July through September were 40.0% above the third sales period in 2020. Excluding reporting aberrations, actual sales were up 41.2%,” according HdL.
“While visitor-driven revenues plummeted in 2019, numbers peaked above pre-pandemic levels in the third quarter of 2021,” according to HdL.
“Increasing prices for wholesale groceries, higher wages and rising menu prices have pushed up receipts from restaurants-hotels,” according to HdL.
“General consumer goods posted positive growth as retail stores reopen and tourist return to the island to enjoy shopping without lockdowns or restrictions,” according to HdL.
“Revenue from food-drugs have seen a slight up-tick as the cost of manufacturing and shipping taxable household products have skyrocketed. New orders for manufactured goods resulted in increases from the business-industry sector,” according to HdL.
“Local one cent sales and use tax receipts for sales occurring July through September were 18% higher than the same quarter one year ago after adjusting for accounting anomalies and back payments from previous quarters,” according to HdL.
The company also took a look at the statewide economic picture.
“These aberrations had been much greater than normal in the last two years as the Governor’s Executive Orders allowed businesses to defer some sales tax payments as a supportive measure during the pandemic. This program has now expired, and merchant remittances are more consistent, making cash receipts more reflective of underlying economic activity,” according to HdL.
“Surprisingly, one of the stronger sectors has been restaurants and hotels. Originally forecasted to take an extended amount of time to recover, statewide sales tax generated during the summer months exceeded amounts from pre-pandemic 2019,” according to HdL.
“Even with the availability of indoor and outdoor dining, pent up demand resulted in long wait times to enjoy local culinary experiences. When combined with increasing restaurant tabs as the cost of food and staff wages surge, sales tax remittances are expected to continue growing. Additionally, while the industry awaits the return of foreign tourism in metropolitan areas, strong domestic travel has helped varied regions around the state especially Southern California and the Central Coast,” according to HdL.
“Receipts from general consumer goods marked a steady recovery, led by apparel retailers, jewelry, electronic/appliance and specialty outlets. Discount department stores, especially those selling gas, helped exemplify the strength of brick-and-mortar merchants. Gains from the countywide use tax pools however, slowed to 2% compared to the high-water mark last year, which had been boosted by new tax collecting requirements imposed under AB 147 for online retailers.
