Town of Moraga Sales Tax Update
F e b r u a r y 1 3 , 2 0 1 9
Sales Tax Background • Bradley Burns Uniform Local
Sales and Use Tax – 1.25%
• 1% to local agencies, .25% to local transportation fund
• Moraga Transactions and Use Tax “District Tax” – 1%
• Recent Developments 1. Impact of Internet 2. Wayfair/Quill 3. Recent State Changes
1
‘Top 25’ Results
2
• 7-ELEVEN • ARCO AM/PM MINI MARKETS • BARNES & NOBLE COLLEGE BOOKSTORE • CHEVRON SERVICE STATIONS • CVS/PHARMACY • DOLLAR TREE STORES • DOVER SADDLERY RETAIL • GOLDEN PALACE MORAGA • HOME GOODS • LA PENNE PIZZA PUB • MORAGA AUTO CARE & SERVICE • MORAGA COUNTRY CLUB
• MORAGA HARDWARE & LUMBER • MORAGA SERVICE CENTER • MORAGA STAR SERVICE STATIONS • MORAGA WINE & SPIRITS • MOUNTAIN MIKE’S PIZZA • NATIONS GIANT HAMBURGERS • ORCHARD SUPPLY HARDWARE • PIERCE MANUFACTURING • PUMPING ESSENTIALS • SAFEWAY STORES • SODEXHO MARRIOT MGMT • TJ MAXX • VALERO SERVICE STATIONS
Top 25 Sales Tax Producers (~ 81% of total)
3
Five Main Sales Tax Categories
1. General Retail - Department stores, boutiques, discount stores, furniture, appliance, drug stores, recreation, etc.
2. Food Products - Markets, restaurants, breweries 3. Transportation - Auto sales, gas stations, auto parts 4. Construction - Wholesale suppliers and retail outlets 5. Business to Business - All industrial/office activity
plus vehicle leasing. •--------------------------------------------------------------------- •Miscellaneous – Health and Government, Other •County Pool - Online sales, 3rd party vehicle sales
4
Top 25 by Sales Tax Category Food Products - 8
• 5 Restaurants, 2 Food Market, 1 Liquor Store
General Retail – 7 • 2 Misc. Retail, 1 Apparel, 1 Drug Store, 1
Furniture, 1 Recreation Products, 1 Dept. Store
Transportation - 6 • 5 Service Stations, 1 Auto Parts/Repair
Construction & B2B - 4 • 2 Bldg Materials, 1 Light Industry, 1 Office Equip.
5
Sales Tax Performance & Comparisons
6
Moraga Bradley Burns 1% Sales Tax Performance
YE 2014 YE 2015 YE 2016 YE 2017 Local Businesses $931,589 $899,580 $884,277 $903,474
General Retail $324,569 $310,049 $322,886 $306,289
Food Products $277,083 $299,053 $296,723 $285,314
Transportation $205,528 $167,801 $147,108 $179,039
Construction $83,444 $83,186 $84,083 $85,977
Business To Business $37,296 $35,893 $28,238 $40,400
Miscellaneous $3,669 $3,598 $5,239 $6,455
7
Moraga County Pool/Admin/Adjustments
YE 2014Q4 YE 2015Q4 YE 2016Q4 YE 2017Q4
Total Receipts $1,056,993 $1,012,571 $995,312 $1,027,823
Net Pools/Admin/Adj $125,404 $112,991 $111,035 $124,349
Local Businesses $931,589 $899,580 $884,277 $903,474
YE 2014Q4 YE 2015Q4 YE 2016Q4 YE 2017Q4 County Pool Total Receipts $149,341 $147,425 $155,583 $160,075
8
Moraga ‘District Tax’ Sales Tax Performance YE 2014Q4 YE 2015Q4 YE 2016Q4 YE 2017Q4 Local Businesses $1,636,784 $1,642,911 $1,659,737 $1,754,137
General Retail $487,445 $487,633 $506,246 $509,158
Food Products $283,344 $304,703 $302,744 $295,562
Transportation $539,183 $493,096 $460,820 $536,898
Construction $134,325 $134,517 $161,451 $156,800
Business To Business $144,597 $165,364 $159,013 $193,048
Miscellaneous $47,890 $57,598 $69,463 $62,671
9
11
Sales Tax Per Capita City/Region $ Per Capita Statewide $150 San Francisco Bay Area $172 Contra Costa Co. (All) $126 Antioch $100 Brentwood $123 Clayton $36 Concord $238 Danville $115 El Cerrito $107 Hercules $67 Lafayette $106 Martinez $116 Moraga $55 Oakley $37 Orinda $50 Pinole $179 Pittsburgh $113 Pleasant Hill $216 Richmond $131 San Pablo $65 San Ramon $104 Walnut Creek $297 10
Sales Tax ‘Capture & Gap’ Analysis
Actual Sales Tax Potential Tax Cap/Gap Rate General Retail $305,818 $1,096,667 ($790,849) 28%
Food Products $285,316 $958,092 ($672,776) 30%
Transportation $179,039 $914,879 ($735,840) 20%
Construction $85,977 $421,398 ($335,422) 20%
CONSUMER DRIVEN TOTAL $856,150 $3,391,036 ($2,534,886) 25%
Business To Business $42,261 $831,405 $159,013 5%
Miscellaneous $5,069 $50,202 $69,463 10%
GRAND TOTAL $903,480 $4,272,643 ($3,369,164) 21%
11
Sales Tax Future?
12
Sales Tax Future - Recent Trends Will Continue
• Sharing Economy – Goods are becoming services. Are autos next? A car becomes a mobility service.
• Millennials Impact – Preference for less goods & more experiences
• Convenience – Overtakes cost as the primary consumer driver
• Technology – Digital complementary to physical
• Voice – How will this transform retail?
13
Sales Tax Future – Reform on the Horizon?
• CA State Auditor Report - 2017
• Review Sales Tax Exemptions
• Explore Taxing Digital Goods and Services
• End ‘Pooling’ of Internet Sales & Third Party Vehicle Sales
• Opportunity to Broaden the Base and Potentially Lower Rate
• CA 20 (Glazer) Legislative Discussion Started Last Year
14
16
Thank you…Questions?
