2012 Q3 Sales Tax UpdateSALES TAX BY MAJOR BUSINESS GROUP
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
7 Eleven
888 Seafood
Allied Building
Products
Auto Zone
Bed Bath & Beyond
CH Auto
Chevron
Circle K
0rS Pharmacy
Dunn Edwards
Paints
East GounTet
Seafood
Restaurant
In N Out Burgers
Jims Burgers
NAcDonalds
NAcDonalds
Office Depot
RjteAjd
Rosen lVbUil
Rosemead Valley
Mart lVbUil
Sea Harbour
Seafood
Solar V\13rehouse
Southern Cal
Edison Cafe
Target
Tesoro Refining &
Marketing
V\131m-art
General Restaurants Fuel and Autos Food Business Building
Consumer and Service and and and and
Goods Hotels Stations Transportation Drugs Industry Construction
HdL's key eco-
, nfirm that Cali -
,tirlues to mend.
and use tax rev -
)us occurring July
2012 were 6.0%
quarter in 2011
sting and report-
autos exceea
and general
the adjusted
taurant sale
quarter with
the same per
from the de
gy, projects and a modest re
some categories of building
struction materials also cone
the rise.
Overall sales growth was tempered by
a leveling in fuel prices compared to
the previous year's quarter and by a
slowdown in business spending in the
Silicon Valle.
The YewAhwd
Gains in sales and use tax receipts from
the first half of 2013 are expected to
be lower than previous quarters. Re-
covery from "fiscal cliff" uncertainties
and its final outcome may take several
months while Europe's financial woes
and China's sluggish grovrth will tem-
per California export activity. Fuel
prices should stabilize and not gener-
ate the huge bubbles in tax revenues
experienced iia previous quarters.
The last half of the vear is predicted to
resume steady, moderate growth. In
November, the state's unemployment
rate had already dipped to 9.8 percent,
the lowest since the recession began.
The recent gains are becoming more
widespread among job categories and
even include an increase in construc-
tion- related employment.
The state's housing market is strength-
ening with fewer distressed transac-
tions and record low inventories. The
median sales price of homes has in-
creased for the last eight consecutive
months of the year and building ac-
tivity, particularly in the coastal areas,
is expected to pick up steam in 2013.
Elevated foreclosure rates in soiree in-
land regions may delay building recov-
ery for another year or two.
Pent-up demand, record low inter-
est rates and easing credit availability
have led to ; robust sales of new auto-
mobiles. That demand is expected to
continue for another few, quarters as
consumers replace older, less fuel ef-
ficient models and take advantage of
lease and financing incentives being
offered by mam,&icturers.
\X `age gains from new hiring combined
with lower fuel prices and an improv-
ing housing market are incrementally
boosting consumer confidence but
much depends on government stew -
ardsh'
ip
of the recovery: Tax increases
and reduced benefits could shrink
spending at the lower income levels
while overly deep cutbacks in gov-
ernment contracts and infrastructure
improvements could discourage new
business investment.
$4,000
$3,000
$2,000
$1,000
$0
Q3 Q3 Q3 Q3
09 10 11 12
MMMMMMM MEMEMMUMMEMEMENEM
Rosemead County California
21,005
6.6%
1.4%
12%
14.042
01%
2.0%
1.6%
15,475
3.9 0 10
91%
7.0%
- CONFIDENTIAL -
18.1%
15.5
16,809
- 2.9
11 0 70
0.4 0 10
15,895
17.8%
12%
-1.1%
13.808
-07%
5.6%
4.7%
14
7.5 0 10
13.5
9.5 0 10
16,025
9.6%
2.5%
4.5 0 10
40.641
5.8%
2.4%
2.6%
23,676
43%
8.9%
8.5%
136,861
19.1
7.1 0 10
8.1 0 10
129.976
- 0.2
1.8 0 10
17 0 10
12,830
0.1%
-0.4%
0.6%
29.491
-8.9%
6.0%
11.7°10