REQUEST FOR CITY COUNCIL ACTION
DATE: 05/01/2024
TO: Honorable Mayor and City Council Members
FROM: Finance Department
SUBJECT:
Title
QUARTERLY SALES TAX REPORT - 2023, QUARTER 4 (OCTOBER - DECEMBER)
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EXECUTIVE SUMMARY:
The City of Corona contracts HdL Companies to provide sales tax consulting services, which include quarterly data reports. The sales tax report for Quarter 4 2023 is provided to the City Council as a receive and file item.
RECOMMENDED ACTION:
Recommended action
That the City Council receives and files the quarterly sales tax information from HdL Companies for Quarter 4 2023 (October- December).
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BACKGROUND & HISTORY:
HdL Companies is contracted to provide sales tax consulting services for the City. On a quarterly basis, they review and analyze the City's sales tax activity. Their resources provide them with information to understand sales tax trends and how the City is performing compared to agencies near Corona, agencies in Riverside County, Southern California, and the State. There is a one-quarter lag in when the information is available to the HdL Companies for their review and analysis.
ANALYSIS:
The quarterly sales tax report is provided for Quarter 4 2023 (October - December). Highlights of the report are included below. Additional details can be found in the attached quarterly report and exhibits.
Quarter 4 2023 (October - December)
Corona's sales tax receipts from October through December 2023 were 2.5% below the same period in 2022. Excluding reporting aberrations, actual sales decreased by 1.5%. The decline in tax receipts from new car dealers was significant, but partially credited to a recent ownership transition at a local dealership causing temporary disruptions in returns. Other business-industrial equipment also suffered, reflecting the nationwide trend. This decline indicated reduced manufacturing and business-industrial activities across the country. Fuel and service station returns we...
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