SOUTH LAKE TAHOE, Calif. – The City of South Lake Tahoe has released the third quarter sales tax report for 2024, and it shows receipts were seven percent down when compared to the third quarter in 2023. But, excluding reporting aberrations, actual sales were actually down 1.6 percent. Aberrations are from delayed payments, audits of receipts, and other reporting modifications.

The third quarter is from July through September.

Retail receipts slumped, as shoppers were more cautious with their spending, focusing on value and turned away from non-essential purchases at electronics/
appliance and sporting goods stores, according to the City of South Lake Tahoe Director of Finance, Olga Tikhomirova, CPA.

Similar to statewide trends, general consumer goods has been down six quarters in the past two years. Fuel-service station receipts slid with crude oil prices fluctuating during the quarter and consumption levels down. It was also another quarter of dreadful sales in the automotive sector.

The food-drugs group felt the pinch of a business closure and reduced receipts
from cannabis-related businesses. Restaurant-hotels gained with some newer casual dining options that opened in spots that had closed in the past year, but the tourist aspect from hotels/motels drove the increases. Residents pulled back on acquiring new and used vehicles. Furthermore, sporting goods purchases and building materials declined for a modest drop in both transaction taxes, Measures S and Q, according to Tikhomirova. Net of aberrations, taxable sales for all of El Dorado County declined 3.7 percent over the comparable time period; the Sacramento region was down 1.2 percent.

Measure S was a general sales tax measure approved by the South Lake Tahoe voters that took effect on April 1, 2021, increasing South Lake Tahoe’s sales tax rate from 7.75 percent to 8.75 percent. Measure Q was a half-percent sales tax increase in 2004. They are tracked separately.

California’s local one cent sales and use tax receipts during July through September were 2.3 percent lower than the same quarter one year ago after adjusting for accounting anomalies. The calendar year third quarter traditionally is noted for
pleasant weather and statewide tourism; however, taxes fell when compared to a
year ago. As such, it also means a weak start of the 2024-25 fiscal year for many
California agencies. Once again, autos-transportation receipts took a hit and declined 4.8%. This period marks the seventh consecutive quarter of downturn for the sector.

The top 25 sales tax producers in South Lake Tahoe for Q3 (in alphabetical order):

Aisle 1
Azul Latin Kitchen
Base Camp Pizza Co
California Burger
Cannablue
CVS Pharmacy
DIY Home Center
Heavenly Sports
Jim Bagan Toyota
Landing Tahoe Resort & Spa
Margaritaville Resort Lake Tahoe
McDonald’s
McP’s Pub Tahoe
Meek’s Lumber & Hardware
Raley’s
Riva Grill on the Lake
Ross
Safeway
Safeway Fuel
Sierra Tahoe Ready Mix
Tahoe Asphalt
Tahoe Sports
TJ Maxx
Up Shirt Creek
Western Nevada Supply