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HomeMy WebLinkAboutStaff Report 2501-4029CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 18, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     F.Sales Tax Digest Q1 (Jan-Mar) 2025 City Council Staff Report Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: August 18, 2025 Report #:2501-4029 TITLE Sales Tax Digest Q1 (Jan-Mar) 2025 ANALYSIS This report transmits information regarding the City of Palo Alto’s sales tax receipts for the first quarter (January to March) of 2025. Listed below are highlights from the report. Detailed discussion and data can be found in the attached City of Palo Alto Sales Tax Digest (Attachment A). Regional and statewide sales tax - adjusted benchmark year (rolling four-quarter) (Attachment A, p. 2):  Palo Alto: decreased by 3.3%  San Francisco Bay Area: decreased by 3.3%  California statewide: decreased by 3.2% Benchmark year comparisons reflect a rolling four-quarter view of economic activity, adjusted to exclude non-period-related payments. City’s most significant activity – benchmark year (rolling four-quarter) (Attachment A, p. 1):  Business to Business – Leasing: decreased by 10.6%; represents 19.3% of total sales tax  Transportation – New autos: decreased by 28.1%; represents 11.9% of total sales tax These two segments account for approximately 30% of Palo Alto’s total sales tax for the period and were the primary drivers of the overall decline. County Pool - quarterly year-over-year comparison (Q1 2024 and Q1 2025) (Attachment A, p. 4)  City share: increased 0.1%, from 6.0% to 6.1%  Total County pool: increased $0.2 million, from $1.5 million to $1.7 million Over the most recent four quarters, the City received approximately $6.5 million from the County Pool, representing about 19% of the City’s total sales tax revenue of $34.1 million during that period. ATTACHMENTS Attachment A: 2025 Q1 Sales Tax Digest Summary APPROVED BY: Christine Paras, Administrative Services Assistant Director City of Palo Alto Sales Tax Digest Summary Collections through May 2025 Sales January through March 2025 (2025Q1) www.avenuinsights.com (800) 800-8181 Page 1 California Overview For the year ending in the first quarter of 2025, cash receipts decreased by 1.0% statewide and decreased by 2.4% in S.F. Bay Area. However, when adjusted for non-period-related payments, the overall economic sales tax activity for the year ending in the first quarter of 2025 decreased by 3.2% statewide and decreased by 3.3% in S.F. Bay Area. City of Palo Alto For the year ending in the first quarter of 2025, sales tax cash receipts for the city decreased by 7.8% 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 the first quarter of 2025 decreased by 3.3%. The primary drivers of Palo Alto's sales tax decrease were the leasing and new auto sales sectors. On an economic basis, leasing sales tax revenue decreased by 10.6%, representing 19.3% of the city's total sales tax for the year ending in the first quarter of 2025. New auto sales decreased by 28.1% over the same period, contributing 11.9% to the total sales tax revenue for the same period. Same quarter sales tax cash receipts decreased by 0.2% in California from Q1 2024 to Q1 2025. Palo Alto citywide sales tax cash receipts decreased by 3.7% over the Q1 2024 to Q1 2025 period. The key reason for the Palo Alto decrease on a cash basis during this period was a decrease in the new auto sales segment of 27.1% which comprises 14.1% of the total sales tax for the city. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 2 % of Total / % Change Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 27.5 / 3.9 28.9 / -1.6 23.5 / -2.8 29.2 / -5.6 38.7 / -1.4 27.3 / -1.4 35.9 / 0.9 27.3 / -2.4 30.1 / 2.7 Food Products 19.1 / 6.3 21.9 / -0.9 23.7 / -1.9 17.6 / -5.9 14.9 / -2.3 23.9 / -0.2 18.4 / 1.2 19.2 / 1.5 27.1 / 1.6 Transportation 15.5 / -24.3 22.4 / -7.5 19.2 / -6.8 26.3 / -12.1 21.4 / -7.5 23.0 / -7.3 22.5 / -5.6 27.7 / -6.7 27.7 / -10.9 Business to Business 32.4 / -6.5 16.0 / -2.7 22.2 / -2.3 13.6 / -16.5 14.8 / -2.3 15.7 / -1.1 10.4 / -4.0 10.4 / -3.4 6.9 / -17.9 Misc/Other 5.5 / 44.7 10.8 / -3.3 11.4 / -3.4 13.4 / -11.0 10.1 / -7.1 10.0 / -0.8 12.8 / -4.0 15.5 / -2.3 8.2 / 7.8 Total 100.0 / -3.3 100.0 / -3.2 100.0 / -3.3 100.0 / -9.7 100.0 / -3.6 100.0 / -2.5 100.0 / -1.8 100.0 / -3.0 100.0 / -3.0 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Leasing Restaurants Restaurants Restaurants Miscellaneous Retail Restaurants Miscellaneous Retail Restaurants Restaurants % of Total / % Change 19.3 / -10.6 16.0 / -0.3 17.8 / -1.1 12.2 / -5.0 17.8 / 6.6 17.8 / 0.2 19.1 / 4.6 12.4 / 2.7 17.6 / 2.5 2nd Largest Segment Restaurants Miscellaneous Retail Auto Sales - New Miscellaneous Retail Department Stores Auto Sales - New Restaurants Department Stores Auto Sales - New % of Total / % Change 17.4 / 6.7 11.2 / 5.0 9.2 / -7.8 11.9 / -1.1 10.8 / -3.7 11.8 / -6.5 12.1 / 2.8 11.2 / -2.5 17.4 / -6.6 3rd Largest Segment Auto Sales - New Auto Sales - New Office Equipment Auto Sales - New Restaurants Miscellaneous Retail Auto Sales - New Auto Sales - New Miscellaneous Retail % of Total / % Change 11.9 / -28.1 10.8 / -6.4 7.6 / -4.9 11.5 / -9.4 10.1 / -1.7 9.7 / 5.6 10.7 / -2.7 10.9 / -3.8 9.3 / 9.9 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2025 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st Quarter 2025 Regional Overview The first chart on page two shows adjusted economic benchmark year amounts, which shows the year ended first quarter of 2025 compared to the year ended first quarter of 2024 (benchmark years are rolling annual comparisons through the current quarter). The growth rates are different between the state and Palo Alto because the sales tax from businesses statewide performed better overall than the businesses in Palo Alto. Regional Overview Chart (Economic) BENCHMARK YEAR 2025Q1 COMPARED TO BENCHMARK YEAR 2024Q1 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 3 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Quarterly Benchmark Year Leasing 19.4% Restaurants 17.4% Auto Sales -New 11.9% Office Equipment 7.4%Apparel Stores 7.1% All Other 36.8% Net Pools & Adjustments 16.1% Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) Net Cash Receipts for Benchmark Year first Quarter 2025: $34,140,876 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2025Q1 BMY is sum of 2025 Q1, 2024 Q4, 2024 Q3, 2024 Q2) City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 4 Anderson Honda Magnussen's Toyota Stanford Health Care Apple Stores Neiman Marcus Tesla Arco AM/PM Mini Marts Nordstrom Tesla Lease Trust Audi Palo Alto Restoration Hardware Tiffany & Company Bloomingdale's Richemont Union 76 Service Stations Hermes Sephora Varian Medical Systems HP Enterprise Services Shell Service Stations Volvo Cars Palo Alto Louis Vuitton Shreve & Co.Wilkes Bashford Macy's Department Store County Pool Results The California sales tax system is referred to as a ‘sales and use tax’ system which covers both sales tax and ‘use tax’. The County Pool revenues largely reflect use tax from qualifying transactions that do not involve a California based point of sale. Businesses report their use tax quarterly based on business activity conducted throughout the county. The County Pool is distributed each quarter based upon a formula where the jurisdiction’s quarterly percentage is based upon its total sales tax receipts for the quarter as a percentage of all sales tax receipts for all jurisdictions within the county. Thus, if local business activity (sales tax receipts) within Palo Alto increases in the quarter relative to the rest of the county, then the Palo Alto County pool percentage also will increase for the quarter compared to the rest of the county. The total countywide pool is multiplied by the city’s quarterly percentage to determine the jurisdiction share each quarter. In the first quarter of 2025, cash receipts for the overall County Pool increased by 7.3% from the same quarter in the prior year. The City’s share of the Countywide Pool increased to 6.1%. The City’s revenues from the County Pool increased from $1,523,986 in 2024Q1 to $1,673,551 in 2025Q1. 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 in the first quarter of 2025. The Top 25 Sales/Use Tax contributors generate 57.6% of Palo Alto’s total sales and use tax revenue. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 5 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Benchmark Year 2025Q1 Benchmark Year 2024Q1 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 6 Economic Category % 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 Business To Business 32.4% 2,584,832 2,352,638 2,228,773 2,366,493 2,149,237 2,343,293 2,943,907 2,683,293 2,135,883 2,490,368 2,067,771 Miscellaneous/Other 23.2% 1,846,371 1,284,493 1,682,849 1,595,196 1,951,428 1,870,170 1,546,096 1,302,322 1,517,005 1,597,816 1,724,861 General Retail 22.8% 1,813,504 2,466,315 1,828,014 2,044,006 1,739,261 2,315,882 1,834,297 2,017,885 1,640,927 2,305,038 1,802,777 Food Products 13.7% 1,091,832 1,448,644 1,349,524 1,394,270 1,288,207 1,348,051 1,277,173 1,349,926 1,195,458 1,260,287 1,230,824 Subtotal Economic (Local Business)92.1% 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 Net Pools & Adjustments 7.9% 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 2,084,763 1,586,938 1,935,580 1,862,181 Total Cash Receipts 100.0% 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 Economic Segment % 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 Miscellaneous/Other 52.4% 4,175,255 3,939,826 4,070,462 4,102,841 4,114,784 4,409,850 4,635,983 4,197,978 3,818,384 4,490,992 4,087,158 Restaurants 15.9% 1,268,403 1,307,103 1,222,917 1,259,885 1,162,863 1,214,598 1,154,189 1,214,502 1,073,621 1,114,637 1,102,248 Miscellaneous Retail 6.6% 529,255 717,726 512,154 582,600 489,040 689,939 480,649 512,077 448,322 545,797 381,616 Apparel Stores 5.7% 455,466 633,554 480,138 531,926 440,402 586,863 478,973 509,894 423,470 538,573 435,730 Department Stores 5.1% 406,470 570,391 432,925 501,499 411,345 549,893 435,388 492,374 356,626 533,032 423,601 Service Stations 2.4% 187,356 187,487 201,591 226,411 198,584 214,900 229,911 222,029 192,723 215,640 233,387 Food Markets 1.3% 107,424 117,774 111,242 114,071 107,031 112,372 103,251 111,465 101,978 116,810 99,811 Business Services 2.6% 206,909 78,229 57,730 80,732 204,085 98,980 83,130 93,106 74,150 98,027 62,683 Subtotal Economic (Local Business)92.1% 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 Net Pools & Adjustments 7.9% 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 2,084,763 1,586,938 1,935,580 1,862,181 Total Cash Receipts 100.0% 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 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 receipts, 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 7 Economic Category % 2025Q1 2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 Business To Business 28.0% 9,544,923 10,207,538 9,655,439 7,661,634 7,610,124 8,210,165 6,942,745 6,183,972 4,391,916 4,379,209 Miscellaneous/Other 17.9% 6,112,102 7,115,395 6,011,184 6,581,876 5,921,875 6,875,995 7,953,991 6,497,984 5,978,304 5,622,526 General Retail 23.7% 8,099,727 7,797,729 7,648,737 7,381,842 4,345,430 7,344,237 8,125,004 8,396,780 8,974,142 8,521,809 Food Products 16.5% 5,641,240 5,306,942 4,969,672 4,072,899 2,409,718 4,773,882 4,866,418 4,741,754 4,852,341 4,616,264 Subtotal Economic (Local Business)86.1% 29,397,991 30,427,603 28,285,032 25,698,251 20,287,146 27,204,279 27,888,157 25,820,489 24,196,703 23,139,808 Net Pools & Adjustments 13.9% 4,742,885 6,614,732 5,722,164 5,654,416 6,193,532 5,608,238 7,269,002 3,022,993 5,133,590 4,212,620 Total 100.0% 34,140,876 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293 27,352,428 Economic Segment % 2025Q1 2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 Miscellaneous/Other 47.8% 16,304,422 18,043,824 16,664,666 14,968,636 14,229,129 16,081,865 15,894,883 14,231,032 12,058,454 11,534,874 Restaurants 15.0% 5,112,872 4,790,248 4,440,779 3,590,792 1,996,155 4,216,758 4,284,651 4,125,689 4,271,725 4,100,347 Miscellaneous Retail 6.6% 2,261,599 2,040,649 1,817,978 2,051,873 1,273,939 1,558,649 1,668,938 1,721,360 2,704,264 2,166,957 Apparel Stores 6.2% 2,100,639 2,025,650 1,896,603 1,737,094 967,724 1,812,400 2,018,832 1,756,932 2,010,997 1,958,756 Department Stores 5.7% 1,931,216 1,889,166 1,771,222 1,665,905 769,134 1,684,162 1,932,093 2,079,948 1,824,760 2,035,144 Service Stations 2.4% 805,798 863,509 899,601 721,205 406,402 687,344 693,763 629,651 515,806 618,467 Business Services 1.3% 428,777 333,273 370,703 581,258 321,146 718,172 940,138 765,322 299,612 275,083 Food Markets 1.3% 452,670 441,283 423,482 381,489 323,518 444,928 454,861 510,556 511,085 450,180 Subtotal Economic (Local Business)86.1% 29,397,991 30,427,603 28,285,032 25,698,251 20,287,146 27,204,279 27,888,157 25,820,489 24,196,703 23,139,808 Net Pools & Adjustments 13.9% 4,742,885 6,614,732 5,722,164 5,654,416 6,193,532 5,608,238 7,269,002 3,022,993 5,133,590 4,212,620 Total 100.0% 34,140,876 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293 27,352,428 Historical Analysis by Calendar BMY from 2016Q1 to 2025Q1 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 (2025Q1 BMY is sum of 2025 Q1, 2024 Q4, 2024 Q3, 2024 Q2). City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 8 Ge n e r a l R e t a i l Foo d P r o d u c t s Tra 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 Mi s c / O t h e r 202 5 / 1 T o t a l 202 4 / 1 T o t a l % C h g Lar g e s t G a i n Sec o n d L a r g e s t Ga i n Lar g e s t D e c l i n e Sec o n d L a r g e s t De c l i n e Campbell -1.3% -0.6% -14.1% -2.5% 4.8% 2,329,752 2,563,782 -9.1%Health & Government Miscellaneous Retail I.T. Infrastructure Auto Parts/Repair Cupertino 8.3% -1.8% -1.8% 9.7% 38.1% 3,382,556 7,283,983 -53.6%Miscellaneous Retail Recreation Products Office Equipment I.T. Infrastructure Gilroy -5.1% 3.3% -8.7% -2.2% -1.8% 3,675,723 3,846,454 -4.4%Heavy Industry Restaurants Auto Sales - New Apparel Stores Los Altos -9.6% -4.4% -0.2% 0.2% 0.0% 554,690 585,717 -5.3%Business Services Furniture/Appliance Electronic Equipment Restaurants Los Gatos 7.0% 1.9% 26.0% 15.7% -15.5% 1,361,793 1,275,650 6.8%Auto Sales - New Furniture/Appliance Miscellaneous Other Biotechnology Milpitas -11.1% -0.6% -8.5% 18.7% 1.7% 5,583,404 5,219,213 7.0%Electronic Equipment Office Equipment Miscellaneous Retail Auto Sales - New Morgan Hill -9.5% -0.6% -6.9% -0.3% -4.1% 2,229,102 2,314,340 -3.7%Light Industry Heavy Industry Misc. Vehicle Sales Electronic Equipment Mountain View -3.5% 0.2% -1.4% 18.1% 5.1% 4,006,892 4,053,887 -1.2%Business Services Bldg.Matls-Whsle Heavy Industry Department Stores Palo Alto 5.8% 8.6% -22.9% 62.3% 54.4% 7,358,552 7,013,392 4.9%Miscellaneous Retail Restaurants Auto Sales - New Electronic Equipment San Jose -0.5% 2.2% -9.0% 4.7% 9.2% 40,438,175 47,560,882 -15.0%Restaurants Miscellaneous Retail Office Equipment Auto Sales - New Santa Clara -3.7% -5.6% 6.8% 26.5% 24.2% 15,834,126 11,785,017 34.4%Office Equipment Light Industry Restaurants Apparel Stores County of Santa Clara -1.5% 4.5% -24.8% 7.7% 12.4% 992,614 970,204 2.3%Health & Government Heavy Industry Auto Sales - Used Auto Parts/Repair Saratoga -5.3% 2.1% 1.9% 29.6% -3.8% 232,925 232,795 0.1%Restaurants Service Stations Miscellaneous Retail Light Industry Sunnyvale 27.3% 1.8% 0.9% 34.6% 83.6% 8,343,857 7,444,782 12.1%Miscellaneous Retail Business Services I.T. Infrastructure Service Stations Quarterly Analysis by Sales Tax Category: Change from 2024Q1 to 2025Q1 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ through the first quarter of 2025, the chart above shows a comparison of one quarter only – first quarter of 2025 to first quarter of 2024. 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 9 California Avenue % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL FOOD PRODUCTS 14.4% 106,018 92,710 66.9%60.5% GENERAL RETAIL -27.2% 16,056 22,062 10.1%14.4% ALL OTHER -5.9% 36,287 38,546 22.9%25.1% TOTAL 3.3% 158,360 153,318 100.0% 100.0% El Camino Real and Midtown % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL FOOD PRODUCTS 10.7% 160,983 145,388 24.7%30.9% GENERAL RETAIL -2.6% 34,869 35,791 5.3%7.6% ALL OTHER 57.7% 456,099 289,270 70.0%61.5% TOTAL 38.6% 651,951 470,450 100.0% 100.0% Greater Downtown % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL FOOD PRODUCTS -0.4% 518,253 520,455 62.5%61.9% GENERAL RETAIL 4.1% 243,224 233,615 29.3%27.8% BUSINESS TO BUSINESS 20.2% 39,570 32,930 4.8%3.9% MISCELLANEOUS 258.7% 18,785 5,238 2.3%0.6% CONSTRUCTION -85.7% 6,529 45,632 0.8%5.4% TRANSPORTATION -3.3% 2,989 3,092 0.4%0.4% TOTAL -1.4% 829,350 840,961 100.0% 100.0% Stanford Shopping Center % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL GENERAL RETAIL -10.8% 1,104,882 1,239,097 85.2%77.2% FOOD PRODUCTS 0.6% 152,066 151,230 11.7%9.4% ALL OTHER -81.1% 40,609 214,508 3.1%13.4% TOTAL -19.1% 1,297,557 1,604,835 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q1 to 2025Q1 (Economic) City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q1 to 2025Q1 (Economic) Cont. City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 10 Town And Country Shopping Center % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL FOOD PRODUCTS -0.7% 111,452 112,234 62.6%62.4% GENERAL RETAIL -1.7% 66,281 67,403 37.2%37.5% ALL OTHER 110.4% 263 125 0.1%0.1% TOTAL -1.0% 177,996 179,763 100.0% 100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL BUSINESS TO BUSINESS 8.5% 2,293,821 2,114,926 37.0%33.1% GENERAL RETAIL -8.1% 1,523,243 1,657,831 24.6%25.9% FOOD PRODUCTS 5.9% 1,171,805 1,107,004 18.9%17.3% TRANSPORTATION -23.0% 1,088,246 1,414,019 17.6%22.1% MISCELLANEOUS 133.8% 88,885 38,011 1.4%0.6% CONSTRUCTION -51.2% 29,056 59,518 0.5%0.9% TOTAL -3.1% 6,195,057 6,391,309 100.0% 100.0% All Geo Areas Total Comparison 25Q1 & 24Q1 % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL Balance of Jurisdiction -2.0% 3,079,843 3,141,982 49.7%49.2% Stanford Shopping Center -19.1% 1,297,557 1,604,835 20.9%25.1% Greater Downtown -1.4% 829,350 840,961 13.4%13.2% El Camino Real and Midtown 38.6% 651,951 470,450 10.5%7.4% Town And Country Shopping Center -1.0% 177,996 179,763 2.9%2.8% California Avenue 3.3% 158,360 153,318 2.6%2.4% TOTAL -3.1% 6,195,057 6,391,309 100.0% 100.0% Palo Alto citywide QE 25Q1 & 24Q1 % CHANGE QoQ 2025Q1 QE 2024Q1 QE 25Q1 % OF TOTAL 24Q1 % OF TOTAL BUSINESS TO BUSINESS 12.8% 2,584,832 2,292,374 35.1%32.7% GENERAL RETAIL 5.8% 1,813,504 1,713,296 24.6%24.4% FOOD PRODUCTS 8.6% 1,393,890 1,283,893 18.9%18.3% TRANSPORTATION -22.9% 1,091,832 1,416,540 14.8%20.2% MISCELLANEOUS 52.2% 365,551 240,154 5.0%3.4% CONSTRUCTION 62.3% 108,944 67,136 1.5%1.0% TOTAL 4.9% 7,358,552 7,013,392 100.0% 100.0% City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 11 FOOD PRODUCTS, 14.4%CHANGE, $106,018 , 66.9%TOTAL GENERAL RETAIL, -27.2% CHANGE, $16,056 , 10.1%TOTAL ALL OTHER, -5.9% CHANGE, $36,287 , 22.9%TOTAL California Avenue 2025Q1 SALES TAX AMOUNTS FOOD PRODUCTS, $92,710 , 60.5%TOTAL GENERAL RETAIL, $22,062 , 14.4%TOTAL ALL OTHER, $38,546 , 25.1%TOTAL California Avenue 2024Q1 SALES TAX AMOUNTS FOOD PRODUCTS, 10.7%CHANGE, $160,983 , 24.7%TOTAL GENERAL RETAIL, -2.6% CHANGE, $34,869 , 5.3% ALL OTHER, 57.7% CHANGE, $456,099 , 70.0%TOTAL El Camino Real and Midtown 2025Q1 SALES TAX AMOUNTS FOOD PRODUCTS, $145,388 , 30.9%TOTAL GENERAL RETAIL, $35,791 , 7.6%TOTAL ALL OTHER, $289,270 , 61.5%TOTAL El Camino Real and Midtown 2024Q1 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 12 FOOD PRODUCTS, -0.4%CHANGE, $518,253 , 62.5%TOTAL GENERAL RETAIL, 4.1% CHANGE, $243,224 , 29.3%TOTAL BUSINESS TO BUSINESS, 20.2% CHANGE, $39,570 , 4.8%TOTAL MISCELLANEOUS, 258.7% CHANGE, $18,785 , 2.3%TOTAL CONSTRUCTION, -85.7% CHANGE, $6,529 , 0.8%TOTAL TRANSPORTATION, -3.3% CHANGE, $2,989 , 0.4%TOTAL Greater Downtown 2025Q1 SALES TAX AMOUNTS FOOD PRODUCTS, $520,455 , 61.9%TOTAL GENERAL RETAIL, $233,615 , 27.8%TOTAL BUSINESS TO BUSINESS, $32,930 , 3.9%TOTAL MISCELLANEOUS, $5,238 , 0.6%TOTAL CONSTRUCTION, $45,632 , 5.4%TOTAL TRANSPORTATION, $3,092 , 0.4%TOTAL Greater Downtown 2024Q1 SALES TAX AMOUNTS GENERAL RETAIL $1,239,097 , 77.2%TOTAL FOOD PRODUCTS, $151,230 , 9.4%TOTAL ALL OTHER, $214,508 , 13.4%TOTAL Stanford Shopping Center 2024Q1 SALES TAX AMOUNTS GENERAL RETAIL, -10.8% CHANGE, $1,104,882 , 85.2%TOTALFOOD PRODUCTS, 0.6% CHANGE, $152,066 , 11.7%TOTAL ALL OTHER, -81.1% CHANGE, $40,609 , 3.1%TOTAL Stanford Shopping Center 2025Q1 SALES TAX AMOUNTS City of Palo Alto Geo Areas Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 13 FOOD PRODUCTS, -0.7%CHANGE, $111,452 , 62.6%TOTAL GENERAL RETAIL, -1.7% CHANGE, $66,281 , 37.2%TOTAL ALL OTHER, 110.4% CHANGE, $263 , 0.1%TOTAL Town And Country Shopping Center 2025Q1 SALES TAX AMOUNTS FOOD PRODUCTS, $112,234 , 62.4%TOTAL GENERAL RETAIL, $67,403 , 37.5%TOTAL ALL OTHER, $125 , 0.1%TOTAL Town And Country Shopping Center 2024Q1 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 8.5%CHANGE, $2,293,821 , 37.0%TOTAL GENERAL RETAIL, -8.1% CHANGE, $1,523,243 , 24.6%TOTAL FOOD PRODUCTS, 5.9% CHANGE, $1,171,805 , 18.9%TOTAL TRANSPORTATION, -23.0% CHANGE, $1,088,246 , 17.6%TOTAL MISCELLANEOUS, 133.8% CHANGE, $88,885 , 1.4%TOTAL CONSTRUCTION, -51.2% CHANGE, $29,056 , 0.5%TOTAL All Other Geos combined with Balance of Jurisdiction 2025Q1 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $2,114,926 , 33.1%TOTAL GENERAL RETAIL, $1,657,831 , 25.9%TOTAL FOOD PRODUCTS, $2,114,926 , 17.3%TOTAL TRANSPORTATION, $1,414,019 , 22.1%TOTAL MISCELLANEOUS, $38,011 , 0.6%TOTAL CONSTRUCTION, $59,518 , 0.9%TOTAL All Other Geos combined with Balance of Jurisdiction 2024Q1 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 14 Balance of Jurisdiction, -2.0%CHANGE, $3,079,843 , 49.7%TOTAL Stanford Shopping Center, -19.1% CHANGE, $1,297,557 , 20.9%TOTAL Greater Downtown, -1.4% CHANGE, $829,350 , 13.4%TOTAL El Camino Real and Midtown, 38.6% CHANGE, $651,951 , 10.5%TOTAL Town And Country Shopping Center, -1.0% CHANGE, $177,996 , 2.9%TOTAL California Avenue, 3.3% CHANGE, $158,360 , 2.6%TOTAL All Geo Area Totals 2025Q1 SALES TAX AMOUNTS Balance of Jurisdiction, $3,141,982 , 49.2%TOTAL Stanford Shopping Center, $1,604,835 , 25.1%TOTAL Greater Downtown, $840,961 , 13.2%TOTAL El Camino Real and Midtown, $470,450 , 7.4%TOTAL Town And Country Shopping Center, $179,763 , 2.8%TOTAL California Avenue, $153,318 , 2.4%TOTAL All Geo Area Totals 2024Q1 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 12.8% CHANGE, $2,584,832 , 35.1%TOTAL GENERAL RETAIL, 5.8% CHANGE, $1,813,504 , 24.6%TOTAL FOOD PRODUCTS, 8.6% CHANGE, $1,393,890 , 18.9%TOTAL TRANSPORTATION, -22.9% CHANGE, $1,091,832 , 14.8%TOTAL MISCELLANEOUS, 52.2% CHANGE, $365,551 , 5.0%TOTAL CONSTRUCTION, 62.3% CHANGE, $108,944 , 1.5%TOTAL Palo Alto citywide 2025Q1 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $2,292,374 , 32.7%TOTAL GENERAL RETAIL, $1,713,296 , 24.4%TOTAL FOOD PRODUCTS, $1,283,893 , 18.3%TOTAL TRANSPORTATION, $1,416,540 , 20.2%TOTAL MISCELLANEOUS, $240,154 , 3.4%TOTAL CONSTRUCTION, $67,136 , 1.0%TOTAL Palo Alto citywide 2024Q1 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts