City of South Lake Tahoe sales tax report shows increase in 4th quarter

SOUTH LAKE TAHOE, Calif. - The 4th quarter sales tax report for South Lake Tahoe shows receipts from October-December 2022 were above those of the prior year by 6.3 percent. Excluding reporting adjustments, receipts for the period were up 8.5 percent.

While many areas of the state saw a decline in dollars spent on transportation, the City had a healthy increase, according to its quarterly report from the finance department. The severe weather likely caused the increase in spending on construction materials and supplies sold by outlets in the business-industry group.

December sales made up for a below-average October and November. In talking to South Lake Tahoe businesses, they saw below-average sales in the 1st quarter of 2023 as well, but those figures have not been tabulated.

Sales tax reports:
2020-21 October $726,741 November $535,719 December $570,445
2021-22 October $509,898 November $406,633 December $400,104
2022-23 October $441,590 November $482,505 December $788,197

The only overall negative during the 4th quarter was the dip in the City’s allocation from the use tax pool which received fewer funds from online sales and equipment purchased by local industry.

The top 25 tax producers in South Lake Tahoe last quarter (in alphabetical order): Aisle 1, Alpine Smith, Azul Latin Kitchen, Base Camp Pizza Co, Blue Zone Sports, California Burger, Cannablue, CVS Pharmacy, DIY Home Center, Heavenly Sports, Jim Bagan Toyota, KB Chevron, Les Schwab Tire Center, McDonald’s, Meeks Building Center, Raley’s, Riva Grill on the Lake, Ross, Safeway, Safeway Fuel, Sports Ltd, Tahoe Wellness, TJ Maxx, Up Shirt Creek, and Western Nevada Supply.

Annual sales tax figures for October-September fiscal year:
2015-16 - $5,269,471
2016-17 - $5,205,933
2017-18 - $5,695,794
2018-19 - $5,671,450
2019-20 - $5,506,167
2020-21 - $7,386,169
2021-22 - $7,268,695

District tax measures S and Q also turned in solid numbers this quarter,
even as the value of used cars purchased declined 33 percent from their pandemic high. Net of adjustments, taxable sales for all of El Dorado County grew 0.3 percent over the comparable time period while those of the Sacramento region were up 1.8 percent.

Overall statewide, general consumer goods growth was up a meager 1.8 percent, in large part from merchants also selling gas as prices remained elevated over last year. Otherwise, many brick-and-mortar retailers experienced mixed results as the phenomenal prior year activity made for
an extremely difficult comparison. This was especially true for jewelry store receipts which had soared tremendously after the pandemic as consumers diversified readily available cash into other assets.

Commuters and seasonal travelers were again burdened with gas prices above $5 per gallon in most of the State, leaving fuel service stations 10 percent higher than a year ago. However, this trend did not distract from
spending at local restaurants and hotels. Increased menu prices and return-to-office workplaces enhanced gains, with the Bay Area experiencing its greatest amount of post-pandemic rebound.

Heading into 2023, additional interest rate hikes along with consumer sentiment waning about the economy foretells minimal change coming from California’s taxable sales in the months ahead.