The city’s sales tax consultant, HdL Companies, reported actual sales were up 3.7% in the first three months of 2024, in the HdL Summer 2024 newsletter.
Those were the numbers after the consultant excluded some “anomalies.”
“Seal Beach’s receipts from January through March were 0.8% below the same period in 2023, with the decline due to additional make-up payments received last year that had been owed from the quarter before, which made for a challenging comparison,” according to the HdL newsletter. (A copy of the newsletter is available on the city website. Just go to the home page, click on Departments, then select Finance, then Financial Reports & Documents and scroll down under City of Seal Beach Sales Tax Updates.
“ A new home-furnishing outlet significantly contributed to this gain,” according to HdL.
The newsletter did not identify the store, thought the description fits the Crate & Barrel store on Seal Beach Boulevard.
“Apparel sales were strong, possibly due to shoppers buying smaller sizes after losing weight with new diet medications,” according to HdL.
“However, a fire that temporarily closed a popular spot negatively impacted casual dining restaurants, and fuel and service station revenues were also down,” according to HdL.
“Measure BB slightly outperformed the Bradley-Burns results, benefiting from strong online shopping,” according to HdL.
This was apparently a reference to the 1-cent sales tax Seal Beach voters approved in 2018. It was not a reference to Measure GG, a half-cent sales tax that the city has placed on the November 2024 ballot.
“Adjusted for anomalies, taxable sales in Orange County declined by 0.4%, while the Southern California region remained flat,” according to HdL.
“California’s local one cent sales and use tax receipts during the months of January through March were 0.2% lower than the same quarter one year ago after adjusting for accounting anomalies,” according to HdL.
“The calendar year first quarter is traditionally the lowest sales tax generating period; however, returns were more on par with the comparison period,” according to HdL.
“One of the only sectors continuing to display declines was autos-transportation. High interest rates created more expensive long-term financing costs. Combined with a dramatic cost of insurance coverage rate spike, this group declined 7.5%,” according to HdL.
The fuel and service station sector also dropped, according to the newsletter. “As California drivers embark on summer travel, they’ll do so with slightly elevated gas prices versus 2023, probably yielding the final period of negative results for the category heading into 2025,” according to HdL.
Even so, among the top 25 sales producers identified in the HdL newsletter, 76 and Chevron were among the top three. (The list is in alphabetical order.)
“Seemingly dramatic one-time events helped boost business-industry, as investments in office supplies-furniture and energy projects were a significant reason for 3.6% gains this quarter,” according to HdL.
“Statewide, 2024 begins in a more positive fashion compared to the recent trends of 2023. Buoyed 1st quarter results may signify ‘the floor’ helping ease tax revenue concerns while awaiting the next growth cycle,” according to HdL.
