Collected sales tax in South Lake Tahoe up double-digits over last year

The economy recovered nicely after the pandemic according to the quarterly sales tax report released Sunday. South Lake Tahoe’s sales tax receipts from April through June (Quarter 2/Q2) were 10.5 percent above the same period in 2020. Adjustments for delayed payments, audits, and other reporting modifications resulted in actual sales that were up 51.3 percent. Overall place of sale collections soared 82.5 percent compared to the extreme lows of a year ago.

People started to get out of the house more, and figures showed travel to South Lake Tahoe for food and some fun was on their list. Receipts from restaurants and hotels skyrocketed 168.4 percent – with casual dining leading the rebound. Hotels and entertainment receipts also posted double-digit gains.

Measure Q’s positive results reflect significant growth in restaurant

activity, as well as in-store and online merchandise transactions. Measure S, which became effective on April 1, 2021, reported results for the first time.

Net of adjustments, taxable sales for all of El Dorado County grew 28.2 percent over the comparable time period; the Sacramento region was up 36.1 percent.

“Strong upward trends continue as South Lake Tahoe enjoys the return of tourism, increased restaurant activity, in-store shopping, surges in online shopping, and an explosion of used car sales," said South Lake Tahoe City Manager Joe Irvin. "The Q2 sales tax report for 2021 provides a dramatic percentage gain compared to Q2 of 2020 that was the most adversely impacted by shelter-in-place directive - a welcome relief that delivers a strong outlook for the City’s sales tax revenue projections. Although the reported increases are significant, the City needs to continue stimulating an expansion of the local retail sector that benefits the quality of life in our community.”

The total brought in through Measure Q in the second quarter was $890,921, up 53.9 percent, from Measure S, $$1,742,432. Measure Q was approved by the voters in 2004 and raised the sales tax in the City from 7.25 to 7.75 percent. Measure S was passed by voters in 2020.

The top 25 producers of sales tax in South Lake Tahoe for Q2 (in alphabetical order)

Aisle 1
Azul Latin Kitchen
Base Camp Pizza
BevMo
California Burger
CVS Pharmacy
Do it Yourself Home Center
Grocery Outlet
Heavenly Sports
Jim Bagan Toyota
KB Chevron
McDonalds
McP’s Pub Tahoe
Meeks Building Center
Raleys
Riva Grill on the Lake
Ross
Safeway
Safeway Fuel
Sports LTD
Tahoe Green
Tahoe Wellness
TJ Maxx
Up Shirt Creek
Western Nevada Supply

The sales tax in city limits is 8.75 percent, with it divided as follows:

State General Fund - 3.9375%
City/County General Fund (Bradley-Burns) - 1.0000%
South Lake Tahoe Transactions and Use Tax (SLTG) - 0.5000%
South Lake Tahoe 2021 Transactions Tax (SLTU) - 1.0000%
County Public Safety (Prop 172) - 0.5000%
County Realignment (Mental Health/Welfare/Public Safety) - 1.5625%
Countywide Transportation Fund - 0.2500%

The County Pool is tax revenue collected from online sales.