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HomeMy WebLinkAboutStaff Report 2501-4034CITY OF PALO ALTO CITY COUNCIL Monday, November 17, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     B.Q2 CY 2025 Sales Tax Digest (April-June 2025) City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: November 17, 2025 Report #:2501-4034 TITLE Q2 CY 2025 Sales Tax Digest (April-June 2025) ANALYSIS This report transmits information regarding the City of Palo Alto’s sales tax receipts for the second quarter (April to June) 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 7.7% • San Francisco Bay Area: decreased by 2.5% • California statewide: decreased by 2.5% 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 41.6%; represents 12.7% of total sales tax • Transportation – New autos: decreased by 32.2%; represents 11.7% of total sales tax These two segments account for over 20% 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 (Q2 2024 and Q2 2025) (Attachment A, p. 4) • City share: decreased from 6.3% to 6.1%, or 20 basis points. • Total County pool: increased $0.1 million, from $1.6 million to $1.7 million Over the most recent four quarters, the City received approximately $6.6 million from the County Pool, representing about 19% of the City’s total sales tax revenue of $34.2 million during that period. ATTACHMENTS APPROVED BY: City of Palo Alto Collections through August 2025 Sales April through June 2025 (2025Q2) neumo.com (800) 800-8181 Page 1 California Overview For the year ending in the second quarter of 2025, cash receipts had a 0.0% change statewide and increase of 0.1% in the S.F. Bay Area. However, when adjusted for non-period-related payments, the overall economic sales tax activity for the year ending in the second quarter of 2025 decreased by 2.5% statewide and decreased by 2.5% in S.F. Bay Area. For the year ending in the second quarter of 2025, sales tax cash receipts for the city decreased by 6.0% 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 second quarter of 2025 decreased by 7.7%. The decrease in Palo Alto's sales tax revenue was primarily driven by the leasing and new auto sales sectors. On an economic basis, leasing sales tax revenue decreased by 41.6%, representing 12.7% of the city's total sales tax for the year ending in the second quarter of 2025. New auto sales decreased by 32.2% over the same period, contributing 11.7% to the total sales tax revenue for the same period. Same quarter sales tax cash receipts increased by 2.0% in California from Q2 2024 to Q2 2025. Palo Alto citywide sales tax cash receipts increased by 0.5% over the Q2 2024 to Q2 2025 period. In addition to negative misallocations in Q2 2024, it should be noted that the primary reason for the 0.5% increase this quarter was due to a significant increase in cash related to activity in prior periods. Otherwise, from an economic basis (actual sales activity solely during the Q2 quarter) there was a 5.3% decline. The key reasons for the Palo Alto economic decrease this period was due to significant declines in two segments: the leasing segment, which decreased by 50.7%, a segment that comprises 10.0% of the city's total sales tax, and the new auto sales segment decreased by 21.9%, which comprises 11.2% of the total sales tax for the city. According to the California New Car Dealers Association (CNCDA), California’s new light vehicle registrations increased by 5.4% in 2025Q2. Lastly, increases for restaurants (7.8%) and miscellaneous relation (16.8%) partially mitigated the decreases for leasing and new auto sales. Regional Overview The chart on page two shows adjusted economic benchmark year amounts, which shows the year ended second quarter of 2025 compared to the year ended second quarter of 2024 (benchmark years are rolling annual comparisons through the current quarter). The divergence in growth rates between California and Palo Alto is attributed to the stronger overall performance of sales tax generating businesses statewide compared to those operating in Palo Alto. BENCHMARK YEAR 2025Q2 COMPARED TO BENCHMARK YEAR 2024Q2 City of Palo Alto neumo.com (800) 800-8181 Page 3 % 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 30.3 / 9.6 29.6 / -0.7 25.8 / -3.6 30.5 / 7.5 38.7 / -3.6 27.6 / -0.3 36.1 / 0.7 27.4 / -1.6 29.1 / 0.6 Food Products 20.5 / 7.2 21.8 / -0.3 23.2 / -0.4 17.3 / -0.4 15.2 / -2.3 24 / -0.2 18.5 / 1.1 19.3 / 1.6 27.2 / 3 Transportation 15.3 / -28.2 22 / -7 18.4 / -6.4 25.8 / -5.5 21.3 / -8.8 22.7 / -7.3 22.3 / -5.3 27.5 / -4.5 27.2 / -9.9 Business to Business 27.3 / -24 15.9 / -2.2 21.5 / -0.3 13.6 / -7.7 14.6 / -5.3 15.7 / -1.5 10.3 / -4.2 10.6 / -2.9 7.9 / 8.1 Misc/Other 6.5 / 51.8 10.7 / -2.4 24.6 / -0.3 18.6 / 0.4 10.2 / -6.3 25 / -0.4 12.7 / -4.1 16.1 / -19.4 8.6 / 12.6 Total 100.0 / -7.7 100.0 / -2.5 100.0 / -2.5 100.0 / -1.5 100.0 / -5.1 100.0 / -2.2 100.0 / -1.8 100.0 / -2.3 100.0 / -0.5 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Restaurants Restaurants Restaurants Miscellaneous Retail Miscellaneous Retail Restaurants Apparel Stores Restaurants Restaurants % of Total / % Change 18.6 / 7.8 16 / 0.3 17.5 / 0.6 13.5 / 21.6 18.2 / 3.6 17.9 / 0.4 19.1 / 3 12.5 / 3 17.7 / 2.9 2nd Largest Segment Leasing Miscellaneous Retail Miscellaneous Retail Restaurants Department Stores Auto Sales - New Auto Parts- Repair Department Stores Auto Sales - New % of Total / % Change 12.7 / -41.6 12.2 / 6.9 10.9 / 6.2 12 / 0.3 10.9 / -3.8 11.7 / -5.3 12.2 / 2.7 11.2 / -3.4 17.3 / -4.1 3rd Largest Segment Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New Restaurants Miscellaneous Retail Auto Sales - New Auto Sales - New Miscellaneous Retail % of Total / % Change 11.7 / -32.2 10.7 / -4.7 8.8 / -7.4 11.3 / -0.6 10.1 / -4 10.1 / 7.6 10.7 / -1.4 11 / -0.9 8.7 / 6 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 2nd Quarter 2025 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 2nd Quarter 2025 City of Palo Alto neumo.com (800) 800-8181 Page 2 Leasing 12.8% Restaurants 18.7% Auto Sales -New 11.8% Office Equipment 7.4% Apparel Stores 7.6% All Other 41.8% Net Pools & Adjustments 22.3% Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2025Q2 BMY is sum of 2025 Q2, 2025 Q1, 2024 Q4, 2024 Q3) City of Palo Alto neumo.com (800) 800-8181 Page 4 County Pool Results The California sales tax system is known as a "sales and use tax" system. County Pool revenues primarily reflect the use tax generated from transactions that do not involve a physical point of sale within California. Businesses report their use tax quarterly, based on activity conducted throughout the county. The County Pool is distributed each quarter based on a proportional formula. A jurisdiction's quarterly percentage is determined by dividing its total gross sales tax receipts for the quarter by the total gross sales tax receipts of all jurisdictions within the county. Consequently, if Palo Alto's gross sales tax receipts increase relative to the rest of the county during a quarter, the city's share of the total County Pool will also increase. This quarterly percentage is multiplied by the total countywide pool to determine the jurisdiction's quarterly County pool revenue. In the second quarter of 2025, cash receipts for the overall County Pool increased by 8.3% from the same quarter in the prior year. The City’s share of the Countywide Pool decreased to 6.1%. The City’s revenues from the County Pool increased from $1,611,681 in 2024Q2 to $1,685,234 in 2025Q2. 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 second quarter of 2025. The Top 25 Sales/Use Tax contributors generate 54.1% of Palo Alto’s total sales and use tax revenue. 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 Quarter Over Quarter Total County Pool 28,701,701 29,548,556 24,937,663 27,690,772 22,345,960 24,427,230 25,411,165 25,387,888 23,265,567 31,312,972 27,268,380 27,503,817 8.3% Jurisdiction Share 1,683,544 1,817,421 1,499,631 1,755,562 1,489,193 1,638,965 1,523,986 1,611,681 1,377,891 1,834,044 1,673,551 1,685,234 4.6% Jurisdiction % of Total 5.9%6.2%6.0%6.3%6.7%6.7%6.0%6.3%5.9%5.9%6.1%6.1% Anderson Honda Macy's Department Store Shreve & Co. Apple Stores Magnussen's Toyota Of Palo Alto Stanford Health Care Audi Palo Alto Neiman Marcus Tesla Bloomingdale's Nordstrom Tesla Lease Trust Hermes Restoration Hardware Tiffany & Company Hp Enterprise Services Richemont Varian Medical Systems Louis Vuitton Sephora Volvo Cars Palo Alto Lucile Packard Children's Hospital Shell Service Stations Wilkes Bashford City of Palo Alto neumo.com (800) 800-8181 Page 4 City of Palo Alto neumo.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 2025Q2 Benchmark Year 2024Q2 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) City of Palo Alto neumo.com (800) 800-8181 Page 5 City of Palo Alto neumo.com (800) 800-8181 Page 6 Economic Category % 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 Business To Business 20.8% 1,829,261 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 Miscellaneous/Other 17.1% 1,504,679 1,542,138 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 General Retail 23.8% 2,096,092 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 Food Products 17.2% 1,514,585 1,396,065 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 Subtotal Economic (Local Business) 78.9% 6,944,617 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 Net Pools & Adjustments 21.1% 1,856,667 633,409 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 Total Cash Receipts 100.0% 8,801,284 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 Economic Segment % 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 Miscellaneous/Other 37.4% 3,294,198 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 Restaurants 15.6% 1,376,526 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 Miscellaneous Retail 6.8% 602,137 529,255 717,726 512,154 582,600 489,040 689,939 480,649 512,077 448,322 545,797 Apparel Stores 6.1% 534,216 455,466 633,554 480,138 531,926 440,402 586,863 478,973 509,894 423,470 538,573 Department Stores 5.7% 503,087 406,470 570,391 432,925 501,499 411,345 549,893 435,388 492,374 356,626 533,032 Service Stations 2.1% 183,941 187,356 187,487 201,591 226,411 198,584 214,900 229,911 222,029 192,723 215,640 Food Markets 1.3% 118,511 107,424 117,774 111,242 114,071 107,031 112,372 103,251 111,465 101,978 116,810 Business Services 3.8% 332,000 206,909 78,229 57,730 80,732 204,085 98,980 83,130 93,106 74,150 98,027 Subtotal Economic (Local Business) 78.9% 6,944,617 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 Net Pools & Adjustments 21.1% 1,856,667 633,409 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 Total Cash Receipts 100.0% 8,801,284 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 Historical Analysis by Calendar Quarter The chart above shows the categories and segments in quarterly economic-based 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 neumo.com (800) 800-8181 Page 7 Economic Category % 2025Q2 2024Q2 2023Q2 2022Q2 2021Q2 2020Q2 2019Q2 2018Q2 2017Q2 2016Q2 Business To Business 22.4% 7,666,142 10,084,171 9,988,442 8,236,182 7,355,834 8,102,570 7,601,876 6,528,872 4,809,596 4,575,031 Miscellaneous/Other 17.6% 6,014,819 7,162,077 5,829,335 6,964,576 6,164,841 6,109,816 8,481,510 6,808,251 5,861,861 5,718,307 General Retail 24.9% 8,510,616 7,763,626 7,739,196 7,554,354 5,663,144 5,910,350 7,945,988 8,134,343 8,712,822 8,613,532 Food Products 16.8% 5,759,455 5,370,830 5,063,640 4,412,316 2,883,218 3,948,623 4,903,383 4,743,028 4,670,072 4,716,766 Subtotal Economic (Local Business) 81.8% 27,951,032 30,380,704 28,620,612 27,167,428 22,067,037 24,071,358 28,932,757 26,214,494 24,054,351 23,623,636 Net Pools & Adjustments 18.2% 6,231,999 5,982,571 7,171,291 4,368,279 6,057,714 5,820,866 7,157,071 3,505,528 5,275,942 3,728,792 Total 100.0% 34,183,031 36,363,275 35,791,903 31,535,707 28,124,751 29,892,225 36,089,829 29,720,022 29,330,293 27,352,428 Economic Segment % 2025Q2 2024Q2 2023Q2 2022Q2 2021Q2 2020Q2 2019Q2 2018Q2 2017Q2 2016Q2 Miscellaneous/Other 41.9% 14,330,797 17,897,256 16,836,602 15,840,333 14,393,440 15,135,645 17,036,114 15,082,343 12,391,585 11,837,137 Restaurants 15.3% 5,226,871 4,849,896 4,537,576 3,908,881 2,452,584 3,439,950 4,320,409 4,223,808 4,142,644 4,199,182 Miscellaneous Retail 7.2% 2,457,655 2,053,427 1,840,260 2,018,775 1,680,503 1,275,393 1,636,751 1,816,125 2,447,265 2,374,255 Apparel Stores 6.2% 2,111,069 2,041,197 1,914,334 1,834,472 1,292,269 1,399,599 1,993,176 2,510,823 1,950,598 1,921,754 Department Stores 5.7% 1,932,805 1,898,124 1,809,413 1,736,032 1,124,054 1,260,329 1,885,562 1,268,109 1,788,350 1,993,949 Service Stations 2.2% 756,181 871,018 869,156 814,968 493,597 571,923 698,074 612,394 589,879 581,616 Business Services 2.0% 678,082 325,852 382,432 618,224 294,931 579,335 908,303 274,336 288,370 265,547 Food Markets 1.3% 457,572 443,933 430,840 395,742 335,659 409,184 454,368 426,556 455,660 450,196 Subtotal Economic (Local Business) 81.8% 27,951,032 30,380,704 28,620,612 27,167,428 22,067,037 24,071,358 28,932,757 26,214,494 24,054,351 23,623,636 Net Pools & Adjustments 18.2% 6,231,999 5,982,571 7,171,291 4,368,279 6,057,714 5,820,866 7,157,071 3,505,528 5,275,942 3,728,792 Total 100.0% 34,183,031 36,363,275 35,791,903 31,535,707 28,124,751 29,892,225 36,089,829 29,720,022 29,330,293 27,352,428 Historical Analysis by Calendar BMY from 2016Q2 to 2025Q2 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 (2025Q2 BMY is sum of 2025 Q2, 2025 Q1, 2024 Q4, 2024 Q3). City of Palo Alto neumo.com (800) 800-8181 Page 8 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 Mi s c / O t h e r 20 2 5 / 2 T o t a l 20 2 4 / 2 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 0.4% -0.9% -7.6% -4.4% -5.4% 2,583,893 2,580,042 0.1% I.T. Infrastructure Miscellaneous Retail Service Stations Bldg.Matls-Retail Cupertino 4.1% 0.4% -15.0% -0.9% 17.7% 3,358,869 7,059,293 -52.4% Electronic Equipment Restaurants Office Equipment Service Stations Gilroy -2.2% 1.4% -3.1% -6.8% -0.8% 4,140,758 4,254,276 -2.7% Restaurants Miscellaneous Retail Apparel Stores Auto Sales - New Los Altos 5.0% -4.0% -4.5% 6.8% 14.5% 613,437 638,888 -4.0% Recreation Products Bldg.Matls-Whsle Restaurants Electronic Equipment Los Gatos 4.7% 0.5% -26.3% -20.9% -7.4% 1,369,989 1,440,442 -4.9% Miscellaneous Retail Business Services Auto Sales - New Bldg.Matls-Retail Milpitas -0.2% 3.9% -3.0% 2.6% 1.9% 6,138,483 5,931,932 3.5% Office Equipment Miscellaneous Retail Electronic Equipment Light Industry Morgan Hill 36.7% 3.0% -2.6% -13.0% -11.4% 2,668,734 2,542,451 5.0% Apparel Stores Heavy Industry Bldg.Matls-Whsle Service Stations Mountain View 3.2% 1.9% -12.9% 14.2% 12.1% 4,319,310 4,271,754 1.1% Business Services Restaurants Auto Parts/Repair Service Stations Palo Alto 6.0% 7.4% -19.8% 48.5% 62.7% 6,973,129 7,365,226 -5.3% Business Services Miscellaneous Retail Leasing Auto Sales - New San Jose -2.3% 2.3% -12.0% 1.8% 5.6% 48,429,408 47,715,045 1.5% Office Equipment Restaurants Auto Sales - New Green Energy Santa Clara 13.1% 0.8% 9.4% 17.3% 18.9% 14,904,801 13,474,969 10.6% Office Equipment Electronic Equipment Light Industry Business Services County of Santa Clara 1.6% 0.6% -41.8% 26.2% 13.2% 2,354,594 1,277,673 84.3% Green Energy Bldg.Matls-Whsle Misc. Vehicle Sales Auto Parts/Repair Saratoga -3.0% 0.1% -2.7% -14.1% 36.8% 267,089 270,061 -1.1% Health & Government Business Services Light Industry Auto Parts/Repair Sunnyvale -22.9% 3.5% 15.3% 0.0% -34.0% 8,729,826 7,745,317 12.7% Business Services Light Industry Miscellaneous Retail Office Equipment Quarterly Analysis by Sales Tax Category: Change from 2024Q2 to 2025Q2 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ through the second quarter of 2025, the chart above shows a comparison of one quarter only – second quarter of 2025 to second quarter of 2024. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments. City of Palo Alto neumo.com (800) 800-8181 Page 9 California Avenue % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL FOOD PRODUCTS 13.4% 110,743 97,674 65.0% 58.9% GENERAL RETAIL -12.0% 20,131 22,889 11.8% 13.8% ALL OTHER -12.3% 39,619 45,194 23.2% 27.3% TOTAL 2.9% 170,493 165,757 100.0% 100.0% El Camino Real and Midtown % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL FOOD PRODUCTS 3.3% 163,529 158,310 32.4% 30.0% GENERAL RETAIL -3.2% 34,869 36,020 6.9% 6.8% ALL OTHER -8.0% 306,702 333,489 60.7% 63.2% TOTAL -4.3% 505,100 527,819 100.0% 100.0% Greater Downtown % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL FOOD PRODUCTS 6.3% 585,368 550,647 63.5% 61.8% GENERAL RETAIL 8.7% 245,622 225,966 26.6% 25.4% BUSINESS TO BUSINESS 7.5% 58,828 54,743 6.4% 6.1% MISCELLANEOUS 214.9% 20,596 6,540 2.2% 0.7% CONSTRUCTION -84.1% 7,735 48,795 0.8% 5.5% TRANSPORTATION -6.5% 3,599 3,848 0.4% 0.4% TOTAL 3.5% 921,748 890,538 100.0% 100.0% Stanford Shopping Center % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL GENERAL RETAIL -10.0% 1,303,080 1,448,482 85.8% 77.9% FOOD PRODUCTS -5.4% 160,820 170,015 10.6% 9.1% ALL OTHER -77.5% 54,523 241,854 3.6% 13.0% TOTAL -18.4% 1,518,424 1,860,351 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q2 to 2025Q2 (Economic) City of Palo Alto neumo.com (800) 800-8181 Page 10 Town And Country Shopping Center % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL FOOD PRODUCTS -2.9% 118,717 122,242 60.3% 59.9% GENERAL RETAIL -5.4% 77,090 81,532 39.1% 39.9% ALL OTHER 263.1% 1,140 314 0.6% 0.2% TOTAL -3.5% 196,947 204,088 100.0% 100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL BUSINESS TO BUSINESS -35.0% 1,426,714 2,194,362 25.4% 32.9% GENERAL RETAIL -7.0% 1,766,886 1,900,089 31.5% 28.4% FOOD PRODUCTS 5.5% 1,257,542 1,191,920 22.4% 17.8% TRANSPORTATION -19.8% 1,024,663 1,278,284 18.3% 19.1% MISCELLANEOUS 127.5% 108,930 47,880 1.9% 0.7% CONSTRUCTION -59.6% 26,773 66,264 0.5% 1.0% TOTAL -16.0% 5,611,508 6,678,799 100.0% 100.0% All Geo Areas Total Comparison 25Q2 & 24Q2 % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL Balance of Jurisdiction -24.1% 2,298,741 3,030,247 41.0% 45.4% Stanford Shopping Center -18.4% 1,518,424 1,860,351 27.1% 27.9% Greater Downtown 3.5% 921,748 890,538 16.4% 13.3% El Camino Real and Midtown -4.3% 505,156 527,819 9.0% 7.9% Town And Country Shopping Center -3.5% 196,947 204,088 3.5% 3.1% California Avenue 2.9% 170,493 165,757 3.0% 2.5% TOTAL -16.0% 5,611,508 6,678,799 100.0% 100.0% Palo Alto citywide QE 25Q2 & 24Q2 % CHANGE QoQ 2025Q2 QE 2024Q2 QE 25Q2 % OF TOTAL 24Q2 % OF TOTAL BUSINESS TO BUSINESS -23.0% 1,829,261 2,376,217 26.2% 32.3% GENERAL RETAIL 6.0% 2,096,092 1,976,918 30.0% 26.8% FOOD PRODUCTS 7.4% 1,514,585 1,410,663 21.7% 19.2% TRANSPORTATION -19.8% 1,031,422 1,285,629 14.8% 17.5% MISCELLANEOUS 69.2% 365,817 216,188 5.2% 2.9% CONSTRUCTION 48.5% 147,905 99,612 2.1% 1.4% TOTAL -5.2% 6,985,082 7,365,226 100.0% 100.0% City of Palo Alto neumo.com (800) 800-8181 Page 10 City of Palo Alto neumo.com (800) 800-8181 Page 11 FOOD PRODUCTS, 13.4%CHANGE, $110,743, 65.0%TOTAL GENERAL RETAIL, -12.0.% CHANGE, $20,131, 11.8%TOTAL ALL OTHER, -12.3% CHANGE, $39,619 , 23.2% TOTAL California Avenue 2025Q2 SALES TAX AMOUNTS FOOD PRODUCTS, $97,674, 58.9%TOTAL GENERAL RETAIL, $22,889, 13.8%TOTAL ALL OTHER, $45,194 , 27.3%TOTAL California Avenue 2024Q2 SALES TAX AMOUNTS FOOD PRODUCTS, 3.3%CHANGE, $163,529 , 32.4%TOTAL GENERAL RETAIL, -3.2% CHANGE, $34,869 , 6.9% ALL OTHER, -8.0% CHANGE, $306,702 60.7%TOTAL El Camino Real and Midtown 2025Q2 SALES TAX AMOUNTS FOOD PRODUCTS, $158,310 , 30.0%TOTAL GENERAL RETAIL, $36,020 , 6.8%TOTAL ALL OTHER, $333,489 , 63.2%TOTAL El Camino Real and Midtown 2024Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto neumo.com (800) 800-8181 Page 11 City of Palo Alto neumo.com (800) 800-8181 Page 12 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 FOOD PRODUCTS, 6.3%CHANGE, $585,368 63.5%TOTAL GENERAL RETAIL, 8.7% CHANGE, $245,622 , 26.6%TOTAL BUSINESS TO BUSINESS, 7.5% CHANGE, $58,828 , 6.4%TOTAL MISCELLANEOUS, 214.9% CHANGE, $20,596 , 2.2%TOTAL CONSTRUCTION, -84.1% CHANGE, $7,735 , 0.8%TOTAL TRANSPORTATION, -6.5% CHANGE, $3,599 , 0.4%TOTAL Greater Downtown 2025Q SALES TAX AMOUNTS FOOD PRODUCTS, $550,647 , 61.8%TOTAL GENERAL RETAIL, $225,966 , 25.4%TOTAL BUSINESS TO BUSINESS, $54,743 , 6.1%TOTAL MISCELLANEOUS, $6,540 0.7%TOTAL CONSTRUCTION, $48,795 5.5%TOTAL TRANSPORTATION, $3,848 0.4%TOTAL Greater Downtown 2024Q2 SALES TAX AMOUNTS GENERAL RETAIL $1,448,482 77.9%TOTAL FOOD PRODUCTS, $170,015 9.1%TOTAL ALL OTHER, $241,854 13.0%TOTAL Stanford Shopping Center 2024Q2 SALES TAX AMOUNTS GENERAL RETAIL, -10.0% CHANGE, $1,303,080 85.8%TOTALFOOD PRODUCTS, 5.4% CHANGE $160,820 , 10.6%TOTAL ALL OTHER, -77.5% CHANGE $54,523 , 3.6%TOTAL Stanford Shopping Center 2025Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts City of Palo Alto neumo.com (800) 800-8181 Page 13 Balance of Jurisdiction, -24.1%CHANGE, $2,298,741 , 41.0%TOTAL Stanford Shopping Center, -18.4% CHANGE, $1,518,424 , 27.1%TOTAL Greater Downtown, 3.5% CHANGE, $ 921,748 , 16.4% TOTAL El Camino Real and Midtown, -4.3% CHANGE, $505,156 , 9.0%TOTAL Town And Country Shopping Center, -3.5% CHANGE, $196,947 , 3.5%TOTAL California Avenue, 2.9% CHANGE, $170,493 , 3.0%TOTAL All Geo Area Totals 2025Q2 SALES TAX AMOUNTS Balance of Jurisdiction, $ 3,030,247 , 45.4%TOTAL Stanford Shopping Center, $ 1,860,351 , 27.9%TOTAL Greater Downtown, $ 890,538 , 13.3%TOTAL El Camino Real and Midtown, $527,819 , 7.9%TOTAL Town And Country Shopping Center, $ 204,088 , 3.1%TOTAL California Avenue, $ 165,757 , 2.5%TOTAL All Geo Area Totals 2024Q2 SALES TAX AMOUNTS BUSINESS TO BUSINESS, -23.0% CHANGE, $1,829,261 , 26.2%TOTAL GENERAL RETAIL, 6.0% CHANGE, $2,096,092 , 30.0%TOTAL FOOD PRODUCTS, 7.4% CHANGE, $1,514,585 , 21.7%TOTAL TRANSPORTATION, -19.8% CHANGE, $1,031,422 , 14.8%TOTAL MISCELLANEOUS, 69.2% CHANGE, $365,817 , 5.2%TOTAL CONSTRUCTION, 48.5% CHANGE, $147,905 , 2.1%TOTAL Palo Alto citywide 2025Q2 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $2,376,217 , 32.3%TOTAL GENERAL RETAIL, $1,976,918 , 26.8%TOTAL FOOD PRODUCTS, $1,410,663 , 19.2%TOTAL TRANSPORTATION, $1,285,629 , 17.5%TOTAL MISCELLANEOUS, $216,188 , 2.9%TOTAL CONSTRUCTION, $99,612 , 1.4%TOTAL Palo Alto citywide 2024Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts