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HomeMy WebLinkAboutStaff Report 2302-10091 7 5 6 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: April 3, 2023 Report #:2302-1009 TITLE Sales Tax Digest Summary Calendar 2022 Q3 (July 2022 – September 2022) RECOMMENDATION This report transmits the third quarter (July to September) of 2022 sales tax digest for the City of Palo Alto (Attachment A). The City’s sales tax cash receipts of $8.7 million for the third quarter (July to September 2022) is $1.9 million (28.3%) higher than the same quarter of the prior year (see Attachment A, Historical Analysis by Calendar Quarter). This increase includes late payment anomalies related to the state sales tax extension program and other cash adjustments. When adjusted for non- period related payments, the overall economic quarter over quarter sales tax activity (Q3 2021 to Q3 2022) in Palo Alto increased by 10.3%. due to higher prices of goods and services as a result of inflation and increased economic activity. For the year ending in the third quarter of 2022, cash receipts (including county pools) for the City increased by 17.9% from the prior year. In comparison, statewide increased by 13.6% and Northern California increased by 11.9%. After adjustments for non-period related payments, the overall economic sales tax activity (local business excluding pools) in Palo Alto for the year increased by 18.0%, while it increased 9.9 % for the state and decreased 1.4% in Northern California. The third quarter includes $1.7 million of sales tax receipts from the county pool. The City’s share of the county pool for this quarter is 5.9%, up from 5% in the third quarter of 2021. County pools are primarily from online purchases from out-of-state companies, remote sellers who ship merchandise to California/County destinations, and private vehicle sales that are not directly allocated to a jurisdiction. County pools are allocated to local jurisdictions based on each jurisdiction’s share of total sales taxes. ATTACHMENTS Attachment A: City of Palo Alto Sales Tax Digest Summary APPROVED BY: Kiely Nose, Assistant City Manager City of Palo Alto Sales Tax Digest Summary Collections through December 2022 Sales July through September 2022 (2022Q3) www.avenuinsights.com (800) 800-8181 Page 1 California Overview For the year ending in third quarter of 2022, cash receipts increased 13.6% statewide, 11.9% in Northern California. However, when adjusted for non-period related payments, the overall economic sales tax activity for the year ending in third quarter of 2022 increased by 9.9% statewide, and down 1.4% in Northern California. City of Palo Alto For the year ending in the third quarter of 2022, sales tax cash receipts for the city increased by 17.9% from the prior year. However, when adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year ending in third quarter of 2022 increased by 18.0%. On a quarterly basis, sales tax cash receipts increased by 28.3% from Quarter 3 of 2021 to Quarter 3 of 2022. However, this increase includes late payment anomalies related to a state sales tax extension program. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When adjusted for non-period related payments, the overall economic quarter over quarter sales tax activity (Q3 2021 to Q3 2022) in Palo Alto increased by 10.3%. A large, one-time audit decision of -$612,000 negatively impacted the city’s cash receipts this quarter. Without the correction, sales tax cash receipts would have increased by approximately 12.4% from Quarter 2 of 2021 to Quarter 2 of 2022. Approximately 3.8% of that adjusted 12.4% Q2 of 2022 over Q2 of 2021 increase might be attributed to inflation, based on increases in the Consumer Price Index, (CPI- U). Very little of Palo Alto’s adjusted 12.4% increase might be attributed to increased economic activity, based on changes in US Real GDP. Roughly 1.7% is attributable to a decrease in payments from prior periods, due to Palo Alto taxpayers getting caught up with payments. The remaining roughly 6.9% is a combination of recovery and other factors (consumers, businesses and organizations getting back to Pre- Pandemic trends along with non-pandemic related business performance changes). Note that some of these factors are based on broad based data and thus, these growth factors should be treated as rough guidelines for economic activity changes this quarter. Regional Overview The first chart on page two shows adjusted economic benchmark year amounts, which means that it shows a full calendar year from the third quarter of 2021 through third quarter of 2022 compared to third quarter of 2020 through third quarter of 2021 (benchmark years are rolling annual comparisons through the current quarter). The decrease is different between the state and Palo Alto because the sales tax from businesses in Palo Alto were more impacted than those statewide. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 2 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Quarterly Benchmark Year % of Total / % Change Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast General Retail 27.7 / 23.5 28.2 / 8.1 26.5 / -11.1 27.8 / 9.7 36.3 / 5.6 26.2 / 12.7 32.6 / 33.3 25.6 / -27.3 Food Products 16.6 / 41.5 20.1 / 16.2 20.7 / 2.1 15.8 / 14.5 14.2 / 8.7 22.2 / 22.4 17.4 / 23.8 17.4 / -8.7 Transportation 20.4 / 1.1 24.4 / 11.7 19.6 / -16.5 27.7 / 9.0 23.3 / 10.3 25.4 / 19.4 26.0 / 33.5 30.3 / -7.3 Business to Business 31.4 / 22.9 16.2 / 7.4 21.5 / -9.4 14.2 / 12.7 14.9 / 11.2 16.2 / 13.1 10.6 / 26.0 11.1 / -0.4 Misc/Other 3.9 / -19.0 11.1 / 4.1 11.8 / -13.1 14.5 / 10.3 11.3 / 3.5 10.0 / 8.4 13.4 / 20.8 15.6 / -16.6 Total 100.0 / 18.0 100.0 / 9.9 100.0 / -9.7 100.0 / 10.8 100.0 / 7.7 100.0 / 16.0 100.0 / 29.0 100.0 / -14.4 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Largest Segment Leasing Restaurants Restaurants Auto Sales - New Miscellaneous Retail Restaurants Miscellaneous Retail Service Stations % of Total / % Change 20.5 / 24.4 14.1 / 23.2 14.9 / 12.7 11.3 / 2.2 13.2 / 18.9 16.0 / 29.4 15.7 / 59.7 11.9 / 19.2 2nd Largest Segment Auto Sales - New Auto Sales - New Miscellaneous Retail Restaurants Department Stores Auto Sales - New Auto Sales - New Restaurants % of Total / % Change 16.1 / -5.7 11.4 / 4.1 9.8 / -11.7 10.7 / 19.3 11.0 / 4.2 12.8 / 14.6 11.0 / 20.3 11.0 / -5.3 3rd Largest Segment Restaurants Miscellaneous Retail Auto Sales - New Miscellaneous Retail Restaurants Department Stores Restaurants Auto Sales - New % of Total / % Change 14.6 / 45.4 9.5 / 17.0 9.3 / -26.7 10.4 / 21.8 9.3 / 10.2 8.1 / 13.2 10.6 / 28.1 10.9 / -23.7 BENCHMARK YEAR 2022Q3 COMPARED TO BENCHMARK YEAR 2021Q3 CITY OF PALO ALTO ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2022 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2022 Regional Overview Chart (Economic) Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 3 Anderson Honda Magnussen's Toyota of Palo Alto Tesla Apple Stores Neiman Marcus Tesla Lease Trust Arco AM/PM Mini Marts Nordstrom Department Store Tiffany & Company Audi Palo Alto Richemont Union 76 Service Stations Bloomingdale's Rivian Automotive Valero Service Stations Hermes Shell Service Stations Varian Medical Systems HP Enterprise Services Shreve & Co.Volvo Cars Palo Alto Louis Vuitton Stanford Health Care Wilkes Bashford Macy's Department Store Leasing 20.6% Auto Sales -New 16.1% Restaurants 14.7% Apparel Stores 6.8%Department Stores 6.4% Office Equipment 6.0% All Other 29.4% Net Pools & Adjustments 21.4% Net Cash Receipts for Benchmark Year third Quarter 2022: $33,450,131 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q3 BMY is sum of 2022 Q3, 2022 Q2, 2022 Q1, 2021 Q4) TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended third quarter of 2022. The Top 25 Sales/Use Tax contributors generate 60.6% of Palo Alto’s total sales and use tax revenue. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 4 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Benchmark Year 2022Q3 Benchmark Year 2021Q3 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 5 Economic Category % 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 Business To Business 25.3%2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 1,559,814 1,700,725 1,937,072 1,909,078 1,851,601 2,000,210 Miscellaneous/Other 18.4%1,597,816 1,724,861 1,701,538 1,687,189 1,812,731 1,743,358 1,558,859 1,777,635 1,480,228 997,005 1,227,541 General Retail 20.7%1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 1,740,666 1,153,240 1,608,823 1,143,497 660,300 1,450,820 Food Products 14.2%1,230,824 1,227,240 1,018,577 1,083,309 999,729 912,939 635,705 674,469 651,271 439,540 990,266 Subtotal Economic (Local Business)78.6%6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 5,668,837 Net Pools & Adjustments 21.4%1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 -2,287 Total Cash Receipts 100.0%8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 Economic Segment % 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 Miscellaneous/Other 47.0%4,087,158 4,008,008 3,949,786 3,969,954 3,752,178 3,570,610 3,406,995 3,982,753 3,567,251 3,181,367 3,551,274 Restaurants 12.7%1,102,248 1,093,944 902,707 947,771 884,911 799,544 540,244 557,662 546,924 342,533 867,027 Miscellaneous Retail 4.4%381,616 479,710 432,956 679,381 412,016 514,516 338,032 489,417 329,678 108,953 280,493 Apparel Stores 5.0%435,730 495,508 392,724 540,782 406,274 398,447 264,318 365,627 265,136 72,307 305,737 Department Stores 4.9%423,601 454,349 367,144 525,295 388,703 384,763 237,522 315,453 186,316 29,842 245,948 Service Stations 2.7%233,387 250,715 191,755 190,610 181,460 157,268 116,258 111,242 108,840 70,063 146,291 Food Markets 1.1%99,811 104,253 91,634 108,203 90,773 89,773 74,397 89,739 81,580 77,803 102,026 Business Services 0.7%62,683 80,950 62,025 227,256 73,169 41,858 70,763 86,107 98,350 65,579 170,042 Subtotal Economic (Local Business)78.6%6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 5,668,837 Net Pools & Adjustments 21.4%1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 -2,287 Total Cash Receipts 100.0%8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 Historical Analysis by Calendar Quarter The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash recei pts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 6 Economic Category % 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 Business To Business 25.8%8,645,684 7,034,140 8,246,139 8,068,576 6,118,695 5,532,072 5,274,809 4,252,574 4,537,394 4,206,253 Miscellaneous/Other 20.0%6,701,529 6,892,583 5,542,287 8,214,200 7,120,534 6,065,260 6,214,339 5,733,704 5,340,922 9,283,251 General Retail 22.9%7,644,764 6,190,190 5,167,346 7,811,723 8,448,668 8,267,871 8,066,588 8,052,871 8,085,021 7,813,954 Food Products 13.6%4,559,950 3,222,843 3,373,098 4,906,402 4,798,972 4,628,795 4,622,737 4,411,228 4,126,302 3,731,703 Subtotal Economic (Local Business)82.4%27,551,926 23,339,756 22,328,869 29,000,900 26,486,869 24,493,998 24,178,472 22,450,377 22,089,640 25,035,161 Net Pools & Adjustments 17.6%5,898,205 5,035,660 5,529,280 5,926,100 5,483,467 5,053,065 4,110,537 4,197,233 3,612,493 3,626,104 Total 100.0%33,450,131 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 Economic Segment % 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 Miscellaneous/Other 48.4%16,193,179 14,859,504 14,564,155 17,223,258 14,622,219 12,786,006 12,448,262 11,026,468 11,018,397 14,405,546 Restaurants 12.1%4,046,669 2,782,361 2,891,941 4,330,976 4,196,879 4,027,460 4,021,277 3,835,898 3,602,981 3,200,200 Miscellaneous Retail 5.9%1,973,663 1,753,981 1,219,614 1,656,394 1,688,326 2,033,749 1,992,497 1,520,014 1,518,777 1,394,483 Apparel Stores 5.6%1,864,744 1,434,666 1,194,705 1,959,891 1,931,586 1,721,794 1,631,712 1,656,560 1,663,440 1,617,661 Department Stores 5.3%1,770,390 1,326,441 1,014,928 1,842,137 2,085,700 2,032,059 2,188,368 2,402,334 2,376,717 2,466,909 Service Stations 2.6%866,467 566,228 506,276 693,868 671,528 601,794 554,825 668,928 784,615 760,477 Business Services 1.3%432,914 271,896 550,822 845,213 808,531 788,902 832,423 839,442 670,259 723,849 Food Markets 1.2%403,901 344,680 386,428 449,163 482,100 502,234 509,109 500,731 454,455 466,036 Subtotal Economic (Local Business)82.4%27,551,926 23,339,756 22,328,869 29,000,900 26,486,869 24,493,998 24,178,472 22,450,377 22,089,640 25,035,161 Net Pools & Adjustments 17.6%5,898,205 5,035,660 5,529,280 5,926,100 5,483,467 5,053,065 4,110,537 4,197,233 3,612,493 3,626,104 Total 100.0%33,450,131 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265 Historical Analysis by Calendar BMY from 2013Q3 to 2022Q3 The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q3 BMY is sum of 2022 Q3, 2022 Q2, 2022 Q1, 2021 Q4). City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 7 Ge n e r a l R e t a i l Fo o d P r o d u c t s Tr a n s p o r t a t i o n Bu s i n e s s t o B u s i n e s s M i s c / O t h e r 20 2 2 / 3 T o t a l 20 2 1 / 3 T o t a l % C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell 0.8%9.2%9.2%7.3%85.3%2,704,626 2,529,056 6.9%Electronic Equipment Restaurants Light Industry Auto Sales - Used Cupertino -6.2%17.0%17.0%-15.7%8.8%8,781,311 10,037,769 -12.5%Restaurants Service Stations Office Equipment I.T. Infrastructure Gilroy 3.4%1.0%1.0%29.4%-13.9%4,487,889 4,241,838 5.8%Auto Sales - New Service Stations Misc. Vehicle Sales Auto Sales - Used Los Altos -13.7%9.7%9.7%135.4%14.1%645,693 567,672 13.7%Electronic Equipment Restaurants Recreation Products Green Energy Los Gatos 9.8%9.4%9.4%1.9%48.5%1,494,264 1,343,457 11.2%Restaurants Miscellaneous Other Food Processing Eqp Leasing Milpitas 8.8%23.1%23.1%22.0%107.0%6,020,216 5,426,209 10.9%Office Equipment Restaurants Auto Sales - New Bldg.Matls-Whsle Morgan Hill 4.4%9.4%9.4%-9.2%-20.2%2,604,870 2,485,592 4.8%Service Stations Restaurants Light Industry Bldg.Matls-Whsle Mountain View -4.9%49.4%49.4%10.8%-44.2%5,078,779 4,186,355 21.3%Restaurants Auto Sales - New Business Services Furniture/Appliance Palo Alto 6.8%23.1%-13.9%29.9%-2.5%6,826,234 6,189,482 10.3%Office Equipment Leasing Auto Sales - New Drug Stores San Jose -0.4%12.1%12.1%29.2%0.6%57,418,270 52,477,579 9.4%Office Equipment Restaurants Miscellaneous Retail Light Industry Santa Clara 4.0%20.7%20.7%3.5%-43.9%13,346,375 11,910,403 12.1%Auto Sales - New Office Equipment I.T. Infrastructure Electronic Equipment County of Santa Clara 9.0%13.6%13.6%21.0%-8.0%1,337,665 1,233,561 8.4%Heavy Industry Restaurants Auto Sales - Used Light Industry Saratoga 5.0%4.4%4.4%58.0%78.2%288,400 260,603 10.7%Business Services Restaurants Food Processing Eqp Apparel Stores Sunnyvale 53.4%20.5%20.5%3.8%68.6%7,204,543 6,137,708 17.4%Department Stores Restaurants Light Industry Business Services Quarterly Analysis by Sales Tax Category: Change from 2021Q3 to 2022Q3 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ th rough third quarter of 2022, the chart above shows a comparison of one quarter only – third quarter of 2022 to third quarter of 2021. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 8 California Avenue % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 29.4%63,121 48,765 46.9%42.0% GENERAL RETAIL -16.2%29,306 34,980 21.8%30.1% ALL OTHER 30.3%42,284 32,446 31.4%27.9% TOTAL 15.9%134,710 116,191 100.0%100.0% El Camino Real and Midtown % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 20.0%155,044 129,204 44.8%38.9% GENERAL RETAIL 1.9%36,622 35,939 10.6%10.8% ALL OTHER -7.5%154,688 167,234 44.7%50.3% TOTAL 4.2%346,354 332,376 100.0%100.0% Greater Downtown % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 26.8%477,597 376,707 56.5%56.4% GENERAL RETAIL 29.6%302,635 233,552 35.8%35.0% BUSINESS TO BUSINESS 21.4%41,811 34,442 4.9%5.2% CONSTRUCTION 7.1%12,591 11,751 1.5%1.8% MISCELLANEOUS 10.2%8,439 7,661 1.0%1.1% TRANSPORTATION -27.9%2,852 3,957 0.3%0.6% TOTAL 26.6%845,924 668,069 100.0%100.0% Stanford Shopping Center % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL GENERAL RETAIL -10.8%929,201 1,041,989 70.7%72.1% FOOD PRODUCTS 8.9%146,567 134,606 11.2%9.3% ALL OTHER -11.1%238,362 267,999 18.1%18.6% TOTAL -9.0%1,314,130 1,444,594 100.0%100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q3 to 2022Q3 (Economic) City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 9 Town And Country Shopping Center % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL GENERAL RETAIL 29.9%71,170 54,803 40.2%35.9% ALL OTHER 7.9%105,749 98,004 59.8%64.1% TOTAL 15.8%176,919 152,807 100.0%100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL BUSINESS TO BUSINESS 29.8%2,054,495 1,583,139 35.8%29.0% GENERAL RETAIL -10.1%1,441,243 1,603,498 25.1%29.4% TRANSPORTATION -16.3%1,112,941 1,330,405 19.4%24.4% FOOD PRODUCTS 23.8%1,026,021 829,000 17.9%15.2% CONSTRUCTION 23.8%56,223 45,412 1.0%0.8% MISCELLANEOUS -12.2%54,741 62,346 1.0%1.1% TOTAL 5.4%5,745,664 5,453,800 100.0%100.0% All Geo Area Totals Comparison 22Q3 & 21Q3 % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL Balance of Jurisdiction 6.9%2,927,627 2,739,762 51.0%50.2% Stanford Shopping Center -9.0%1,314,130 1,444,594 22.9%26.5% Greater Downtown 26.6%845,924 668,069 14.7%12.2% El Camino Real and Midtown 4.2%346,354 332,376 6.0%6.1% Town And Country Shopping Center 15.8%176,919 152,807 3.1%2.8% California Avenue 15.9%134,710 116,191 2.3%2.1% TOTAL 5.4%5,745,664 5,453,800 100.0%100.0% Palo Alto citywide QE 22Q3 & 21Q3 % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL BUSINESS TO BUSINESS 29.9%2,194,817 1,689,561 32.2%27.3% GENERAL RETAIL 6.8%1,802,777 1,687,461 26.4%27.3% TRANSPORTATION -13.9%1,341,557 1,558,469 19.7%25.2% FOOD PRODUCTS 23.1%1,230,824 999,729 18.0%16.2% MISCELLANEOUS -7.6%187,947 203,392 2.8%3.3% CONSTRUCTION 34.3%68,311 50,869 1.0%0.8% TOTAL 10.3%6,826,234 6,189,482 100.0%100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q3 to 2022Q3 (Economic) Cont. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 10 FOOD PRODUCTS, 29.4% CHANGE, $63,121 , 46.9% TOTAL GENERAL RETAIL, -16.2% CHANGE, $29,306 , 21.8% TOTAL ALL OTHER, 30.3% CHANGE, $42,284 , 31.4% TOTAL California Avenue 2022Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $48,765 , 42.0%TOTAL GENERAL RETAIL, $34,980 , 30.1%TOTAL ALL OTHER, $32,446 , 27.9%TOTAL California Avenue 2021Q3 SALES TAX AMOUNTS FOOD PRODUCTS, 20.0%CHANGE, $155,044 , 44.8%TOTAL GENERAL RETAIL, 1.9% CHANGE, $36,622 , 10.6%TOTAL ALL OTHER, -7.5% CHANGE, $154,688 , 44.7%TOTAL El Camino Real and Midtown 2022Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $129,204 , 38.9%TOTAL GENERAL RETAIL, $35,939, 10.8%TOTAL ALL OTHER, $167,234 50.3%TOTAL El Camino Real and Midtown 2021Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 11 FOOD PRODUCTS, 26.8%CHANGE, $477,597 , 56.5%TOTAL GENERAL RETAIL, 29.6% CHANGE, $302,635 , 35.8%TOTAL BUSINESS TO BUSINESS, 21.4% CHANGE, $41,811 , 4.9%TOTAL CONSTRUCTION, 7.1% CHANGE, $12,591 , 1.5%TOTAL MISCELLANEOUS, 10.2% CHANGE, $8,439 , 1.0%TOTAL TRANSPORTATION, -27.9% CHANGE, $2,852 , 0.3%TOTAL Greater Downtown 2022Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $376,707 , 56.4%TOTAL GENERAL RETAIL, $233,552 , 35.0%TOTAL BUSINESS TO BUSINESS, $34,442 , 5.2%TOTAL CONSTRUCTION, $11,751 , 1.8%TOTAL MISCELLANEOUS, $7,661 , 1.1%TOTAL TRANSPORTATION, $3,957 , 0.6%TOTAL Greater Downtown 2021Q3 SALES TAX AMOUNTS GENERAL RETAIL $1,041,989 , 72.1%TOTAL FOOD PRODUCTS, $134,606 , 9.3%TOTAL ALL OTHER, $267,999 , 18.6%TOTAL Stanford Shopping Center 2021Q3 SALES TAX AMOUNTS GENERAL RETAIL, -10.8% CHANGE, $929,201 , 70.7%TOTAL FOOD PRODUCTS, 8.9% CHANGE, $146,567 , 11.2%TOTAL ALL OTHER, -11.1% CHANGE, $238,362 , 18.1%TOTAL Stanford Shopping Center 2022Q3 SALES TAX AMOUNTS City of Palo Alto Geo Areas Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 12 GENERAL RETAIL, 29.9%CHANGE, $71,170 , 40.2%TOTALALL OTHER, 7.9% CHANGE, $105,749 , 59.8%TOTAL Town And Country Shopping Center 2022Q3 SALES TAX AMOUNTS GENERAL RETAIL, $54,803 , 35.9%TOTAL ALL OTHER, $98,004 , 64.1%TOTAL Town And Country Shopping Center 2021Q3 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 29.8%CHANGE, $2,054,495 , 35.8%TOTAL GENERAL RETAIL, -10.1% CHANGE, $1,441,243, 25.1% TOTAL TRANSPORTATION, -16.3% CHANGE, $1,112,941, 19.4% TOTAL FOOD PRODUCTS, 23.8% CHANGE, $1,026,021 , 17.9%TOTAL CONSTRUCTION, 23.8% CHANGE, $56,223 , 1.0%TOTAL MISCELLANEOUS, -12.2% CHANGE, $54,741 , 1.0%TOTAL All Other Geos combined with Balance of Jurisdiction 2022Q3 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $1,583,139 , 29.0%TOTAL GENERAL RETAIL, $1,603,498, 29.4% TOTAL TRANSPORTATION, $1,330,405, 24.4% TOTAL FOOD PRODUCTS, $829,000 , 15.2%TOTAL CONSTRUCTION, $45,412 , 0.8%TOTAL MISCELLANEOUS, $62,346 , 1.1%TOTAL All Other Geos combined with Balance of Jurisdiction 2021Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 13 Balance of Jurisdiction, 6.9%CHANGE, $2,927,627 , 51.0%TOTAL Stanford Shopping Center, -9.0% CHANGE, $1,314,130 , 22.9%TOTAL Greater Downtown, 26.6% CHANGE, $845,924 , 14.7%TOTAL El Camino Real and Midtown, 4.2% CHANGE, $346,354 , 6.0%TOTAL Town And Country Shopping Center, 15.8% CHANGE, $176,919 , 3.1%TOTAL California Avenue, 15.9% CHANGE, $134,710 , 2.3%TOTAL All Geo Area Totals 2022Q3 SALES TAX AMOUNTS Balance of Jurisdiction, $2,739,762 , 50.2%TOTAL Stanford Shopping Center, $1,444,594 , 26.5%TOTAL Greater Downtown, $668,069 , 12.2%TOTAL El Camino Real and Midtown, $332,376 , 6.1%TOTAL Town And Country Shopping Center, $152,807 , 2.8%TOTAL California Avenue, $116,191 , 2.1%TOTAL All Geo Area Totals 2021Q3 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 29.9%CHANGE, $2,194,817 , 32.2%TOTAL GENERAL RETAIL, 6.8% CHANGE, $1,802,777 , 26.4%TOTAL TRANSPORTATION, -13.9% CHANGE, $1,341,557 , 19.7%TOTAL FOOD PRODUCTS, 23.1% CHANGE, $1,230,824 , 18.0%TOTAL MISCELLANEOUS, -7.6% CHANGE, $187,947 , 2.8%TOTAL CONSTRUCTION, 34.3% CHANGE, $68,311 , 1.0%TOTAL Palo Alto citywide 2022Q3 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $1,689,561 , 27.3%TOTAL GENERAL RETAIL, $1,687,461 , 27.3%TOTAL TRANSPORTATION, $1,558,469 , 25.2%TOTAL FOOD PRODUCTS, $999,729 , 16.2%TOTAL MISCELLANEOUS, $203,392 , 3.3%TOTAL CONSTRUCTION, $50,869 , 0.8%TOTAL Palo Alto citywide 2021Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts