Scribd Logo
Upload

Welcome to Scribd!

  • 2017 Q4 - 2019 Q1 Sales Tax Update

    Uploaded by

    City of Grand Terrace
    4 views12 pages
    City of Grand Terrace Sales Tax Update 2017 Q4 - 2019 Q1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    City of Grand Terrace Sales Tax Update 2017 Q4 - 2019 Q1

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    4 views12 pages

    2017 Q4 - 2019 Q1 Sales Tax Update

    Uploaded by

    City of Grand Terrace
    City of Grand Terrace Sales Tax Update 2017 Q4 - 2019 Q1

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 12
    Grand Terrace i Sales Tax Sea hare Racial arr ales ane - Mand 2019) eWeMCirlem §=©SALES TAX BY MAJOR BUSINESS GROUP Teli : cetfed aaron a Lie casas vedere ane aay ee sme $8076 Ceaberes ee eae Feeie Waker | Com Pot ss nay tate ee sections | ® Zi By Dominos Pizza Sater Bros Gross Receipts SUMAN Gatontescnsa Te kioen ‘mo vies end Trace Se Von Pump & Gimeisrum Ene Woodys Cassi Ga | Hajoca coperason Ws iets |oaanian FIL? Statewide Results Vocal sales and use tax receipts from Janaary through Marchsaler were L036 higher than the fst quater of 2018, after Ecorng out accounting anoms- Tie and back payments from previous sete poring shor. This was the lowet percentage increase since Bist yar, 200 The growth came peimatily fom a solid quarter for purchase rested t9 ‘xpanding logics, medical and tech- nelogy fits and modest gains in builingconsracion supplies and reraurants, Cannabis sales produced alight upeicin the fod drug group, Lower fue prices and dectning gener al consume good purchases offer the rine. The shift interme purchases ‘continued with online shopping ac counting fr 22.3% ofthe otal general consumer god segment vers 20:2% fone yar ago. Tax recipe from new caries edited dignfcan redactions although the drop was paral offet teyan upewing in od auton and ato leas Regional changes ranged fom a de line of 2.1% to guineas high a 4.49, However, the differences were peimar ‘ly sbacable ro onetime projects oF capital purchases and nox refletve of overall ecnomie tends. ‘Slower Growth Anead? July marks ten year of continous economic growth which s the longest period of US, economic expansion on record. Hewes analysts from a vari- ‘yo cone sognenns are epoting signe hat we maybe leveling of “his quarte matted the igh conse tivecompantive prod decline in Cal fois new ar eieations wth analyse noting thahighe pros aed a gowing, supply of shies coming of lease are taking used cas more atracive. They sso ote tat nrdemare service sch 25 Uber and Lyf are making ic easier for debi-urdened millennial o avoid buyingcarakogethe. Ridngresaurat menu pics rneved | FO oo ‘competion from grocer prepared ‘meds and cutbacks in foreign oars apa tobe reducing restaurant patron agewhich in ecent year was one ofthe | $400 bee's fasten growth sents There wil be an upec in he second quar: | #00 ter cll eax recep boca of that period’ refinery shutdowns lower ude ol cots ar expec to prdce subsequent decines Uncertainy ever US. aif and wade pic pls abr shortage ae delaying ‘ome inveriment nd bushes expansion ‘decisions while reduced home sles and wo quartersof declining. constuction permicvalues suggest a potential ucure leveling in that sector. Investment in technological avaners shoud contin and remain strong Gxstecas coumy caters Economic shifts are not the only fa torleelngsslertx reverses With an «economy based onicllecual technol ‘ogy rather than goods and consumer plies siting wo on-esable services aed expercnes sales tax no ange ee ects 2 century pending, Each year therfore, che portion of the economy thac ie ete, sinks, (ites Grand Terrace Sales Tax Ft er Recor Forth Quarter Sa (tb - Dem 208) CURIE = Sates TAX BY MAJor BUSINESS GROUP tii a S iti. ‘eiCarea Muar olen sonal Lopes 2c Mengatan mors aaets Babeaie Naa Met eo Pols PoindSoe SHE SIONS aozone Ctaberte Mexcan ao Feed Canty Pot amo sis05 hevon ies Sine Pot 0 136 CyePramacy erie Wendin mae Fass Grom espe ST.IT. 6 Shr Anco Damo Pana DirenBies | SalerBros ond Tike Lie contre ae neoeaie Vins Caste Ga Posed Comin non EA HTD Statewide Results “The loal one cent share of eles and scx rota October through Dever Iersales wat 2.896 higher than 2017 holiday quarter fier fitoring for tare eporing aberrations “Theovrallinceas came primi fom said quarter for conractor materials and equipmen, expanded posuction ly an auto manifctrer and xing Fel prices Onlin fulfillment center, new technology investnent and canabie starve als pric sigiicane gine. Reese in the sx eauney Sacramenac region grew 7% overlat yeh the remainder ofthe sate war exer st ‘oc exhibited only minor growth, [Notable was the 0.0986 sein ta 2 cps From bre and owt reales ‘whichis the lowest holiday an for that sector nce 2009, 86% crease in recipes fom online shoping which is allocate wo central onder des or coun ty oats was part ofthe reason. Other eters ince lover prices gift ards wich move picks irae quar tersand grater pifing of nan eaable experiences and services ‘The Reta Evolution Continues recent survey deified US. losses oF 102 lion gfe fret pac in 2017 and an addtional 155 milion. fin 2018, Similar losis are expct ‘ein 2019 wih 5,300 closures aay anounced. Pyles Shoo, Gymbere, | Pesfrmance Bayele and. Charbue Russe are going ott of business while chains inclading Sere, Kmart, Mays, JCPenney, Kohls, Norstom, Dollar Tree, Victorias Secret, Chicos, Foot Locker and Lowe's hive annouteed plans for farther cit in overstated ‘markets and downsizing of sores. Renallers are no planning the end Physical stores which continue to be important for peronalizd experiences andshoppingemertainment. Hower, the shifting trends encourage reduced square footage with kt overhead abet tereampetson pss and provide mote incimate shopping encounters, ‘Wich smarsphones allowing purchase and delivery of almost anything at any time of the day without leving home, big box retailers are responding by downsizing stores and subleasing cess space to compatible busineses to hp draw teaffic. Locations where people congregate for entertalnment, fad and services hve become part of the evolving sratogy as ha inegratng rexal with more conveniens spots for Pikeup and deer of cone orders Bary Foster of Hdl’ EconSoltions, ots that "shin shopping hai pres tnt challenges but ale opportunites “Smaller fooprint enable expanding imtoamalerciche markets while eed use projects and 18-hour environments are chances to rebuild downtowns and reinvigorate shopping centers” With more companies using the inter Tells ely wo costamers fom their warehouses, che rend also provides jurisdictions whore populations art adequate in sie to suppor large sale rex foc on nda development asl tx aswell a jobs | DERE nd Terra Sw — GrsTenae Coup om OTT apr esty Ges. ‘us Tensponabon uss ant ny Foot wd ns Festa Sane Stone ena Canim Conse Canty ana Sat Pots Toa Pesawanis 18% S PER CAPITA Ne cat 49% eas ous 12 5% 1% Grand Terrace Sales Tax nth Qn Rap Tn nr Sale ny -Siptlar 2018) we CMMI §=©SALES TAX BY MAJOR BUSINESS GROUP nicl Medonas mre ne Miu Natealtogsis | PameetSae ——Si74001 $210,129 Puchase Groen | Cameo 2 AE versie Weneson | gat Poo! a ms Sve sce Donines Riza mart Tne Foed | Grows Macabis OK SIRGAS Duncan Boe ‘ie Ergneeng | oath camino FTG wewdeeompanie.com | aBA6L220 California Overall, The CDTFAr problems with is new softwar tem had yet be aly soled by che end ofthe third quarter. UAL adjusters fr dled payments and oer eprting deficient indicte that stewie eps fromthe eal one cent tx rose 5.2% over the at three ‘quarters of 218 vers the comparison pio, “The gains were primarily fom igh ue prices, song building con- struction activity and 3 rie Un eax re ‘ips fom online purchase delvered fiom oueofstate tha ar shal by all genes Via the county poo “The dra cehibits the star ofa eveling pattern in other sectors. Te setewide fain in new carsales fr July shrug Sepember wat det singe manic turer illing bac order. Price compe fon ep tax evens fom consumer ode receipes relatively at while che ‘hein online shopping expending the Aiveson of tx revenics fmbrick nd ‘mortar ores county pols ort in ‘tnt dvtibution centers, Restaurant sles are beginningto show signsof mack scuraton a wel asthe impact nw competition that incades Prepared fod and mal kts delivered froma variety of othersurces. A mod ss gai in bsines india les was largely related to data and warchouse technology a8 well x3 few major de velopment projects Amicipated desins in fue pies in the ise quarter of 2019 ads support {H's ate consensus forcast fora tmodest statewide gan of 156 in fic year 2019-20 unless new trade conics Further impr the economy. South Dakota V. Wayfaie Decision In June, the Supreme Coure reversed it previes rung chat rele ae not epired collet tans or uraicons ‘whet hey have no physi presence oF nexus” instead, he buyer was spon sible for mmiting the a. ‘California wll begin enforcing the ‘Waylair reversal efecive Apel 2019 Ceri ees fay making realers dlvering from sponsible for eating and remiting use tax ifcalendsr year sales exead $100,000 andlor 200 oe more sjarat tranacion, The etme threshold wil also determine wiether in-state rtailersare responsible fr ol Iecting es on deliveries to ndvidal transaction ax dics Some leiators have announced their intenior to held heatngs and may modify the regulations prio tothe a ‘pounced April 1 implementation dae “That process and anit sart-up and notification ies will probably ey fl compliance in 209-20, Armose maja caline etal, nding ‘Weayfaizatealeady collecting Califor nia taxsand the sate ha taditonaly cnforceda broad definition of rows,” thelimpastf the South Dako dion may be ks than in ther tates The US. Goverment Accountability Office estimate a pote vent gin of 3 10 $5 percaplein eps rom curone “elas. 7% ee aa RET eenoin na! so * Gate Cosy Catena Cenk conemerGone 1508 AK Festa nde woe ak CawyandcinPode SOK OR estou 1m ( Grand Terrace Sales Tax “hr har Reif San ure Slt 2018) ae MPMI §=©SALES TAX BY MAJor BUSINESS GROUP Tele ica ie Cossare tazone eaenalss Ballon Team Mig aera Promsons ——yengoan 8 : intte 600s ss Beer Roan NuRay Mel : 90 atest Prokes ered ieee eee, Retceabon Caspers ty 7 Creer versie Wonton | State Pol 49 3s ‘Sher ace Ree 0 7 ee Gross Recess Bo STTAS Dominos Pezt Tha Keon rand Royal ésaes Ton coe Haris Tansee ee, Irignd Buses Wateens Fame lp Paster commits EHTS vwnubaconpai.com | 8.61220 ‘Calfornia Overall Local Goverment cash rept from ‘April hroagh June sles dropped 10.9% fom the same quarter one eat ago dct implementation ise with CDITAS new tax reporting software systen.. The resi were further Skewed by the State tempt to oct the rekng shortages by advancing fencated neve quarter, Aficrreviowing unprocessed recurs and ppeoximating the fll amounts oF paral payments, Hal estimates tha fnceal turns are propery proceed and he daa ajuned to refee actual ‘quar receipts, satewide local alee find use tax revenues will be 1.6% highs chan cond quarter 2017 Sales of building and conscruction smavzials, jt fuel and online shop- ping appear to have been the primary Ahir of satewide groweh during the second quater Auto sales leveled of 2 previouly anvcpatd, although receipe fiom auto leaes conned to stow subsantal gains. Online fulfilment centers and value themed appaed stores wee the primary gainers ‘within the general consumer good ‘roup. Busines indusrialpurchaes were igh lower than previous ‘quaers with declines in new energy pres being major factor Reghmnally, the San rancnco Bay area ann the Saerameno and San Joaquin Valley teas outperformed the rest of the state “Tart Policies and Sales Tax “Tif are becoming a key element of the federal government’ international trade strategy with addtional dies ‘of 109% announced forthe end ofthe third quarter sing t0 25% by theend of 2018, Despie he caren debates, nabs Tw tha the impact pics aes villbe inital through the remainder (0F 201819 rox major ales have ready empored ei ementry or the holiday seson and ae attempting to rsh pringimvenores through ews head ofthe new 596 rates Many ma fsctuers have managed io aol rai ing pees by absorbing the out ofthe inal is round of erfs on meta, tmachinry and componenss On ce | RMNAMBSORUEERS down ie small rtalers without te power took prices may be placed st Eeompetive diadvaneage and conta | yap torvare ginning o require ecalaon clauses in eonaract to cover potential | g3.99 ont increstes on long range projec “The key concer for analyse proea {ng 2019 20 eax reveres willbe how 200 the federal goverment cies Rerace | y policies and heimpactonsalerand ae | fax revenues. Although higher pres | eneate ore ales tx from individu Drchases, they alo potently nace | the number of purchases, particulary in an envtenmene where rising housing, Gardionce couty ‘afore ‘cation and beakh cate coms compe for sgnfcae portion of dicresonay Proponents of sing ais argue chat theriig ssengthof the U.S dll wil offset the impact of aif elaed price increases on consumers Opponents worry thatthe stronger dllar and the nounced $56 billion in realiatory tars on California export wll ng tively impact both the affected com panies job base and capil imestment ‘ats Tester Bang Cosmsten Fn San Sos (ere ener Goode Cty ie ete “recor noises opportuni. ces Pestawants Grand Terrace Sales Tax Sed re Rais fr Ft QuarerSl mary - Mad 208) nie CUPMIC §=6SALES TAX BY MAJOR BUSINESS GROUP sii a ce a ante te ee —- Petia iam anne Mon onyPot masa “roc Sia Pol m” 195 Dominos Pixs Goss Recepts S309 —_—SSL.500 rand Teac Sat Publihed by HL. Comparies in Summer 268 wehdcompanescom | aa6.azt 1 (COTA Changes “The California Department of Taxes and. eer Adminisration (CDTEA) Implemented new reporting sofware = Ganelized Revenue Opportunity ‘Sysem (CROS) withthe fsequarer 2018 eax flings. “The change will a low CDTPA to calloctand allocate tax revenue more «icky than the prise system making data nore timely and relat fr decison making purposes There will alo bea greater emphasis on electronic tax fling withthe gal of deceasing enorsand misallocation. Dusingthe changeover, CDTFA hada | hard estofFof April 30 forex earn. Allcting the venue received though ‘hae prod leftsome activity out ofthe ‘ent quater, pushing itt the second ‘quarter 2018, However, COTFA wil bedlaburing the revenue elated ro the previously delayed payments with the June 2018 monly allocation Insunmasy the change in sofiwareand paral sllcaion in the Brst queer 2018 payments will inflate actual die ‘wutonsin June 2018 and be inl ‘with second quater 2018 data Statewide Results Given the CDTEA changeover, the stntewide Fit quar 2018 recep were 196 lower chan the pie yea: How cre, once Hal adjusted the results for ‘ising pyments and othe accounting noma, the eu were 599% higher than the same period in 2017 Ase rebound in building constr ‘ion activ compared to year ago when gloomy winter weather depres ‘esl and continued increasesin fuel tooweral growth, Steady recip rom purchases denne lo ped boost countywide use tx po! allocations. Aficr a long petiod of slid growth fn new carsales, much of che upward ‘movement within this group i now ‘coming fom laser rather than pu chase, Corporate ax brea approved bby Congres December 2017, sree pected wo havea posveimpacton the Industral sector at businesses lok t0 invest ees cash, (ere bree eens Supreme Court Ruing SALES PER CAPITA On Thursday June 2,208 he Su preme Cour red in 54 dein to rege ofa onlin ees tocollect sales taxes on sales to in-state | $4080 oOer*N trident The phytases ale at Ae by Qui gers enor | 8 ‘ly applicable andar, an the on line interstate rasherplace wat ao the 200 revallng tse before the cout in 1992 InCalifoenia, numerous online eailers | slredy collect and emit sae aed local taxes, incading 2 of the 3 companies | Oy 7 wat inoled in this Supreme Cour eae (yaad Nowe According toa study conducted by the California State Board of Equalization, the otal rvense loser o emote | nar sellers for both businese and howe | Marine Goope hold consumer were about $.453 bil | As on Tasson Hon nfl year 201617. Unpaid use | 8dsho 06 Cannason tax lables in 201617 average $i | uses ant rusry peryeatfxeachCaifmiabouhod, | Feet fd Calli bainses avenge S71 | Fat snSee Stns jer year in unpaid use tax liabilities. aaa = = Restoran and Hotels ‘TheCDTFA curently reviewingthe | Seay su sme tooe cours opinion a determine next ep Teta vo suppore eaxpayes. “tcorig we ceo eer Bus, _. Gtand Terrace Sales Tax nt nr Rif Barth ara (One Drab 2017) 207 MPMI §=6SALES TAX BY MAJOR BUSINESS GROUP Tice sco vais mer Bin Ballon Team PunehSe Som 90R $US County os mums 6 Sete Poo ms » Gomneaits Ses $0820 ‘Publis by Hal Companies in pring 018 Hdl? California Overall Factored for accounting anomlis, statewide fourth quarter receipes om Ibeal governments one cent tle to were 486 higher than the holiday ‘Guiter of 2016, Rising fuel prices and sid gains rm Twildingleonsrcton suppl, rea rancandecommerce wee the pimary -conbutors othe overall increas. A healthy quater for aut sales and con- section equipment were addon factors Tax revenues fram gescral consumer goods sod through brit and ‘ora sts a moder 1% ole Yearscomparble quarter wheres From online ales increased 13.2%, Peformance for the inland areas the sete were generally stronger than che ‘ona ares wich adele recoeed from the previous downturn, [Nexus Tesve to be Revisited Tr 1992, the US. Supreme Cour ruled in’ Qual» Norah Date chat business lacking a physical preence cor nexus ina state cannotbe eqired to cllce or remie that wate’ exes, “Thi does not excite buyers rom prying coreponding use taba the ‘Con oF enforcement, particule on smaller purchases, edifice andlocal Trick and mortar relers ar placed a a competive duadrantge California has been more fective at collecing ase tax than mos ates wth an aggresive program of audic ing major Business purchases, requir ing CPA‘ wo tepore unpaid use axon leeds anneal returns and retin Tusneses with annual gros ecg 1 $10,000 of more to reper fr the pose of poring use x. “The State has aleo increned che numberof ut-ofstate als seqaled to collec sles tax chrough brader ‘Efnkionsof what const phil presence including requirement chat Figen ineret retle calle and remit sls exif paying 2 commision for customer seferal obalned via Tinkeon a California seller webs, Sil the eximated evens losses ae subsancilpariculaly for agencies with vote proved transactions #38 dst, Because of Quill reals are not required t0 caller the tax for ‘urchass in an aden islition FF the reales has wo py presence In that juriadicion. ‘The resulting loss 10 local governments projected bythe ‘State Boatd of Equalization in 2016-17 ‘wae $736 Mili in uncalled tax revenser and loses othe sate of $697 Million-(hepslfwww.boe

    You might also like