South Lake Tahoe sales tax collection down in 4th quarter

SOUTH LAKE TAHOE, Calif. - South Lake Tahoe’s taxable receipts from October through December 2023 were six percent below the fourth sales period of 2022. Excluding reporting aberrations, actual sales were down 4.8 percent.

Consumer prices are still rising at a rate higher than the Fed’s inflation target and nearly half of consumers consider inflation a major concern, according to the quarterly report compiled by the City of South Lake Tahoe's Director of Finance, Olga Tikhomirova. Her report states the largest decline in the city limits came from general consumer goods with multiple categories posting lower sales including sporting goods, specialty, and art/gift/novelty shops. Less snowfall delayed the opening of two ski resorts early in the season for lower visitation to the area after last year’s snowiest season.

The summary of the quarter's sales shows fuel prices fluctuated during the 4th quarter, but local service stations reported weaker returns. Revenues shrank in food-drugs as grocery sales diminished with cost-conscious consumers shifting to store brands. The group is also still feeling the impact of a business closure. Restaurant receipts improved modestly, although several local closures late in the quarter will likely impact future results.

Not all figures were less than 2023. There were double-digit gains reported from the building group with contractors booked and building materials purchases.

Measures S and Q posted gains from investments in the business sector and
building categories, as well as general merchandise purchases.

Net of aberrations, taxable sales for all of El Dorado County declined 2.9 percent over the comparable time period; the Sacramento region was down 3.4 percent.

The top 25 tax producers in South Lake Tahoe 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,
Langenfeld True Value, Les Schwab Tire Center, McDonald’s, Meek’s Lumber &
Hardware, Raley’s, Riva Grill on the Lake, Ross, Safeway Fuel, Sierra Tahoe Ready Mix, Sports Ltd, Tahoe Asphalt, Tahoe Valley Electric Supply, TJ Maxx,
Up Shirt Creek, Western Nevada Supply, Whole Foods Market.

The fourth quarter is notably the highest sales tax-generating quarter of the year and exhibited diminished year-over-year returns as consumers
balanced higher prices and financing costs with essential household needs. In the state, a drop in luxury car sales caused the "autos/transportation" category for taxable receipts to drop 3.6 percent, leading all categories, followed by fuel and service station receipts down 2.6 percent.