Seal Beach second quarter sales tax revenues dropped 10.8 percent below the same time last year, according to the HdL Companies.
“Actual sales were down 11.9 percent when reporting aberrations were factored out,” according to the second quarter 2010 “City of Seal Beach Sales Tax Update” from HdL.
Seal Beach businesses took in $982,714 in gross receipts during the second quarter of 2010. Seal Beach businesses took in $1,101,391 during the same period in 2009.
“A decline in sales from the fuel and service station sector was primarily responsible for the current decrease,” the HdL report said.
Fuel and service stations generated 28 percent of sales overall during the second quarter, according to the HdL report. “The losses were partially offset by a recent addition that helped boost revenues from family apparel and a strong sales quarter for light industry,” the report said.
Consumer goods businesses brought in 34 percent of the revenues in the second quarter.
The HdL document listed several fuel or service stations among the city’s top 25 sales tax revenue producers.
One of the service stations listed, ARCO Smog Pros, will be demolished in the near future for decontaminating the soil and ground water in Seal Beach’s Bridgeport neighborhood.
County slightly better
According to HdL, things were slightly better county-wide than they were in Seal Beach during the second quarter.
“Local sales and use tax revenues for sales occurring April through June were 4.7 percent higher than the same quarter of 2009 after accounting aberrations were factored out,” the report said.
“However, the comparison is against a quarter that was 18.4 percent below the same quarter in 2008 which was in turn 4 percent lower than the same quarter in 2007,” the report said.
The HdL Companies report went on to say that the recession officially ended in June 2009. HdL cited the National Bureau of Economic Research as its source.
“However, that does not mean a recovery has occurred,” the report said.
Sales tax reimbursements
The HdL report did not mention any reference to sales tax reimbursements.
Energy Tubulars Inc. receives 20 percent of sales tax back from the city each quarter. The City Council approved the reimbursement as a consent calendar item in July 2007.
In December 2009, the City Council approved a sales tax reimbursement agreement with Amonix.
However, Amonix has not actually received any money back.
According to departing City Manager David Carmany, the contract calls for Seal Beach to keep the first $25,000 a year in sales taxes generated by Amonix. The solar panel manufacturing firm is supposed to get back 30 percent above that threshold.
“To date, they have yet to meet the threshold,” Carmany said.
Seal Beach’s 25 top sales producers
The following 25 businesses generated the most sales in Seal Beach from April to June 2010. They are listed in the order in which they appeared in the HdL report.
Amonix
(Seal Beach reimburses a portion of Amonix’s quarterly sales tax. The City Council approved the reimbursement in December 2009.)
Bacardi USA
Bed, Bath & Beyond
California Pizza Kitchen
Chevron Service
College Park Mobil
Conkle Union Service
CVS Pharmacy
Energy Tubulars Inc.
(Seal Beach reimburses 20 percent of this Energy Tubulars’ quarterly sales tax four times a year. The City Council approved the reimbursement to Energy Tubulars in October 2007.)
G&M Oil
Home Goods
Kohls
Leisure World Automotive 76
Marshalls
Old Ranch Country Club
Original Parts Group
Ralphs
Roger Dunn Golf Shops
Seal Beach Chevron
Seal Beach Mobil
Smog Pros
Spaghettini
Target
Vons
Walt’s Wharf
