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HomeMy WebLinkAboutStaff Report 2512-5668CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, March 02, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     B.Sales Tax Digest Q3 2025 (Jul-Sept) City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: March 2, 2026 Report #:2512-5668 TITLE Sales Tax Digest Q3 2025 (Jul-Sept) ANALYSIS This report transmits information regarding the City of Palo Alto’s sales tax receipts for the third quarter (July - September) of 2025. Highlights from the report are included below. Detailed discussion and data can be found in the Sales Tax Digest (Attachment A). Regional and statewide sales tax - adjusted benchmark year (Attachment A, p. 2): Palo Alto: decreased by 6.4% San Francisco Bay Area: decreased by 1.6% California statewide: decreased by 1.7% Benchmark year comparisons reflect a rolling four-quarter view of economic activity, adjusted to exclude non-period-related payments. City’s most significant activity – quarterly year-over-year comparison (Attachment A, p. 1): Business to Business – Leasing: decreased by 89.1%; represents 2.1% of total sales tax Transportation – New autos: decreased by 5.5%; represents 14.7% of total sales tax These two segments account for over 15% 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 (Attachment A, p. 4) City share: decreased from 5.9% to 5.6%, or 30 basis points. Total County pool: increased $0.2 million, from $1.4 million to $1.6 million Over the most recent four quarters, the City received approximately $6.8 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 Q3 Sales Tax Digest Summary APPROVED BY: Lauren Lai, Administrative Services Director City of Palo Alto Sales Tax Digest Summary Collections through December 2025 Sales July through September 2025 (2025Q3) neumo.com (800)800-8181 Page 1 California Overview For the year ending in the third quarter of 2025, cash receipts increased 2.1% statewide and S.F. Bay Area increased 3.8% in the same period. However, when adjusted for non-period-related payments, the overall economic sales tax activity for the year ending in the third quarter of 2025 decreased by 1.7% statewide and decreased by 1.6% in S.F. Bay Area. City of Palo Alto For the year ending in the third quarter of 2025, sales tax cash receipts for the city decreased by 2.2% 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 third quarter of 2025 decreased by 6.4%. 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 58.0%, representing 8.7% of the city's total sales tax for the year ending in the third quarter of 2025. New auto sales decreased by 29.4% over the same period, contributing 11.6% to the total sales tax revenue for the same period. Same quarter sales tax cash receipts increased by 4.5% in California from Q3 2024 to Q3 2025. Palo Alto citywide sales tax cash receipts decreased by 0.7% over the Q3 2024 to Q3 2025 period. In addition to negative misallocations in Q3 2024, it should be noted that the primary reason for the 0.7% decrease this quarter was due to a significant decrease in cash related activities in the current period. Consequently, on an economic basis (actual sales activity solely during the Q3 quarter) there was a 5.2% decline. The key reasons for the Palo Alto economic decrease this period were due to significant declines in two segments: the leasing segment, which decreased by 89.1% or $1,157,953 in sales tax from Q3 2024, and the new auto sales segment decreased by 5.5%, which comprises 14.7% 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 5.3% in 2025Q3. Lastly, increases for restaurants (19.6%) and miscellaneous related items (44.0%) partially mitigated the decreases for leasing and new auto sales. ATTACHMENT A City of Palo Alto neumo.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 General Retail 31.9 / 13.9 29.2 / 0.1 23.1 / -2.4 31.0 / 7.0 38.6 / -6.0 27.8 / 1.2 36.5 / 2.6 27.9 / -0.5 Food Products 21.1 / 7.4 22.1 / -0.2 24.6 / 1.7 17.4 / -2.4 15.2 / -4.6 23.9 / -0.2 18.4 / 1.0 19.5 / 0.3 Transportation 15.4 / -25.0 22.0 / -5.4 19.0 / -4.2 25.6 / -7.2 21.2 / -8.4 22.5 / -5.1 22.1 / -3.1 27.5 / -5.2 Business to Business 24.8 / -26.9 16.0 / -1.7 21.6 / -3.3 13.5 / -9.4 14.8 / -5.0 15.9 / 0.6 10.4 / -1.8 10.3 / -2.8 Misc/Other 6.9 / 42.9 10.7 / -1.9 11.7 / 1.3 12.5 / -11.0 10.2 / -5.6 10.0 / -0.4 12.6 / -2.4 14.8 / -7.1 Total 100.0 / -6.4 100.0 / -1.7 100.0 / -1.6 100.0 / -3.3 100.0 / -6.1 100.0 / -0.9 100.0 / -0.1 100.0 / -2.9 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Largest Segment Restaurants Restaurants Restaurants Miscellaneous Retail Miscellaneous Retail Restaurants Miscellaneous Retail Restaurants % of Total / % Change 19.2 / 8.1 16.2 / 0.5 18.6 / 2.7 13.8 / 19.7 18.4 / 1.1 17.9 / 0.5 19.4 / 4.9 12.8 / 2.1 2nd Largest Segment Auto Sales - New Miscellaneous Retail Auto Sales - New Restaurants Department Stores Auto Sales - New Restaurants Department Stores % of Total / % Change 11.6 / -29.4 11.8 / 7.7 9.1 / -4.8 12.1 / -1.2 11.0 / -4.5 11.6 / -2.5 12.2 / 2.6 11.4 / -2.4 3rd Largest Segment Miscellaneous Retail Auto Sales - New Miscellaneous Retail Auto Sales - New Restaurants Miscellaneous Retail Auto Sales - New Auto Sales - New % of Total / % Change 9.6 / 28.3 10.8 / -2.0 7.6 / 12.1 11.7 / 1.6 10.1 / -6.4 10.2 / 8.5 10.8 / 2.1 11.0 / -0.3 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2025 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2025 Regional Overview The chart on page two shows adjusted economic benchmark year amounts, which shows the year ended third quarter of 2025 compared to the year ended third 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. Regional Overview Chart (Economic) BENCHMARK YEAR 2025Q3 COMPARED TO BENCHMARK YEAR 2024Q3 ATTACHMENT A City of Palo Alto neumo.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 8.7% Restaurants 19.2% Auto Sales -New 11.7% Office Equipment 7.6% Apparel Stores 7.8% All Other 45.0% Net Pools & Adjustments 23.3% Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) Net Cash Receipts for Benchmark Year Third Quarter 2025: $34,128,948 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2025Q3 BMY is sum of 2025 Q3, 2025 Q2, 2025 Q1, 2024 Q4) ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 4 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q3 Quarter Over Quarter Total County Pool 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 28,287,141 21.6% Jurisdiction Share 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 1,595,260 15.8% Jurisdiction % of Total 6.2% 6.0% 6.3% 6.7% 6.7% 6.0% 6.3% 5.9% 5.9% 6.1% 6.1% 5.6% Anderson Honda Magnussen's Toyota Stanford Health Care Apple Stores Neiman Marcus Tesla Arco AM/PM Mini Marts Nordstrom Department Store 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 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 third quarter of 2025, cash receipts for the overall County Pool increased by 21.6% from the same quarter in the prior year. The City’s share of the Countywide Pool decreased to 5.6%. The City’s revenues from the County Pool increased from $1,377,891 in 2024Q3 to $1,595,260 in 2025Q3. 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 third quarter of 2025. The Top 25 Sales/Use Tax contributors generate 52.8% of Palo Alto’s total sales and use tax revenue. ATTACHMENT A 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 2025Q3 Benchmark Year 2024Q3 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 6 Economic Category % 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 Business To Business 17.9% 1,446,306 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 Miscellaneous/Other 21.5% 1,731,803 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 General Retail 26.4% 2,128,953 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 Food Products 18.1% 1,458,554 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 Subtotal Economic (Local Business)83.9% 6,765,615 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 Net Pools & Adjustments 16.1% 1,302,731 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 Total Cash Receipts 100.0% 8,068,346 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 Economic Segment % 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 Miscellaneous/Other 37.6% 3,034,581 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 Restaurants 16.5% 1,328,254 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 Miscellaneous Retail 8.1% 652,655 602,137 529,255 717,726 512,154 582,600 489,040 689,939 480,649 512,077 448,322 Apparel Stores 6.4% 517,728 534,216 455,466 633,554 480,138 531,926 440,402 586,863 478,973 509,894 423,470 Department Stores 5.9% 472,934 503,087 406,470 570,391 432,925 501,499 411,345 549,893 435,388 492,374 356,626 Service Stations 2.3% 183,776 183,941 187,356 187,487 201,591 226,411 198,584 214,900 229,911 222,029 192,723 Food Markets 1.4% 109,640 118,511 107,424 117,774 111,242 114,071 107,031 112,372 103,251 111,465 101,978 Business Services 5.8% 466,047 332,000 206,909 78,229 57,730 80,732 204,085 98,980 83,130 93,106 74,150 Subtotal Economic (Local Business)83.9% 6,765,615 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 Net Pools & Adjustments 16.1% 1,302,731 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 Total Cash Receipts 100.0% 8,068,346 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 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. ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 7 Economic Category % 2025Q3 2024Q3 2023Q3 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 Business To Business 20.1% 6,869,015 9,399,855 10,689,186 8,678,935 7,083,644 8,170,476 8,199,747 6,134,751 5,533,774 5,274,809 Miscellaneous/Other 17.9% 6,105,927 6,980,799 6,236,815 6,732,776 6,508,799 5,535,588 8,214,058 7,119,237 6,064,700 6,214,339 General Retail 26.0% 8,856,515 7,775,757 7,714,150 7,714,757 6,207,000 5,183,848 7,805,483 8,440,417 8,410,442 8,066,588 Food Products 17.2% 5,854,499 5,449,905 5,127,830 4,647,611 3,235,060 3,389,571 4,918,993 4,804,294 4,641,731 4,623,265 Subtotal Economic (Local Business)81.1% 27,685,956 29,606,316 29,767,980 27,774,079 23,034,503 22,279,484 29,138,281 26,498,699 24,650,648 24,179,001 Net Pools & Adjustments 18.9% 6,442,992 5,291,740 6,923,156 5,676,052 5,340,914 5,578,666 5,788,719 5,471,637 4,896,415 4,110,008 Total 100.0% 34,128,948 34,898,056 36,691,136 33,450,131 28,375,417 27,858,150 34,927,000 31,970,336 29,547,063 28,289,009 Economic Segment % 2025Q3 2024Q3 2023Q3 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 Miscellaneous/Other 0.0%12,927,875 12,448,262 Restaurants 15.6% 5,321,832 4,924,771 4,604,551 4,131,263 2,792,862 2,909,068 4,342,670 4,202,201 4,040,236 4,021,805 Miscellaneous Retail 7.8% 2,660,401 2,072,883 1,895,774 2,031,252 1,751,595 1,231,667 1,653,266 1,682,875 2,034,384 1,992,497 Apparel Stores 6.3% 2,148,334 2,035,253 1,949,764 1,873,244 1,433,251 1,196,455 1,951,720 1,931,692 1,721,857 1,631,712 Department Stores 5.7% 1,952,882 1,915,593 1,817,587 1,774,543 1,327,392 1,014,928 1,842,137 2,085,700 2,032,059 2,188,368 Service Stations 2.2% 767,452 844,203 865,212 867,158 566,217 505,648 693,546 671,528 601,794 554,825 Business Services 3.2% 1,085,287 306,842 402,095 609,268 268,371 547,952 845,196 819,074 790,083 832,423 Food Markets 1.3% 454,747 448,747 438,455 404,790 345,115 385,774 450,076 482,100 502,359 509,109 Subtotal Economic (Local Business)81.1% 27,685,956 29,606,316 29,767,980 27,774,079 23,034,503 22,279,484 29,138,281 26,498,699 24,650,648 24,179,001 Net Pools & Adjustments 18.9% 6,442,992 5,291,740 6,923,156 5,676,052 5,340,914 5,578,666 5,788,719 5,471,637 4,896,415 4,110,008 Total 100.0% 34,128,948 34,898,056 36,691,136 33,450,131 28,375,417 27,858,150 34,927,000 31,970,336 29,547,063 28,289,009 Historical Analysis by Calendar BMY from 2016Q3 to 2025Q3 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 (2025Q3 BMY is sum of 2025 Q3, 2025 Q2, 2025 Q1, 2024 Q4). ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 8 Ge n e r a l R e t a i l F o 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 / 3 T o t a l 20 2 4 / 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 D e c l i n e Campbell 2.6% 0.1% -5.0% 10.4% 1.0% 2,451,723 2,433,271 0.8%I.T. Infrastructure Florist/Nursery Bldg.Matls-Whsle Auto Sales - Used Cupertino 2.2% -3.7% -3.7% -55.8% 19.8% 4,548,732 8,543,003 -46.8%Electronic Equipment I.T. Infrastructure Office Equipment Food Markets Gilroy -2.1% 1.5% 2.8% 11.7% -0.8% 4,145,175 4,099,857 1.1%Auto Sales - New Miscellaneous Retail Apparel Stores Auto Sales - Used Los Altos -8.1% -4.5% -2.1% -39.0% 1.0% 575,296 622,155 -7.5%Miscellaneous Retail Heavy Industry Electronic Equipment Restaurants Los Gatos -3.1% -3.7% -4.2% 8.0% -13.1% 1,269,333 1,316,741 -3.6%Biotechnology Auto Sales - New Service Stations Restaurants Milpitas 13.2% 3.3% -7.0% 10.6% 43.1% 6,346,228 5,831,835 8.8%Office Equipment Miscellaneous Retail Electronic Equipment Apparel Stores Morgan Hill -4.9% 3.4% -6.5% 24.1% -1.6% 2,468,878 2,482,237 -0.5%Electronic Equipment Heavy Industry Misc. Vehicle Sales Service Stations Mountain View 9.6% -0.3% 4.6% 45.4% 44.1% 4,590,893 4,256,537 7.9%Office Equipment Miscellaneous Retail Service Stations Auto Sales - Used Palo Alto 15.5% 5.6% -5.7% -34.9% 31.1% 6,767,977 7,138,856 -5.2%Business Services Miscellaneous Retail Leasing Auto Sales - New San Jose 9.0% 4.8% -9.4% -3.2% 4.5% 56,661,831 55,552,013 2.0%Miscellaneous Retail Restaurants Green Energy Auto Sales - New Santa Clara 3.1% 7.2% 6.5% -16.0% 10.1% 14,801,014 15,676,392 -5.6%Restaurants Auto Sales - New Office Equipment Electronic Equipment County of Santa Clara 38.0% -2.7% -50.7% -12.6% -5.5% 1,324,834 1,372,753 -3.5%Apparel Stores Food Markets Misc. Vehicle Sales Electronic Equipment Saratoga -5.3% -2.8% -14.9% 36.3% -55.0% 251,332 273,969 -8.3%Furniture/Appliance Office Equipment Bldg.Matls-Whsle Auto Parts/Repair Sunnyvale -4.6% 2.4% 6.6% 17.6% -18.5% 8,384,289 7,861,482 6.7%Light Industry Business Services Miscellaneous Retail Office Equipment Quarterly Analysis by Sales Tax Category: Change from 2024Q3 to 2025Q3 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ through the third quarter of 2025, the chart above shows a comparison of one quarter only – third quarter of 2025 to third quarter of 2024. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments. ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 9 California Avenue % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL FOOD PRODUCTS 10.4% 110,405 99,992 64.8%61.2% GENERAL RETAIL 2.0% 25,986 25,473 15.3%15.6% ALL OTHER -10.5% 33,974 37,977 19.9%23.2% TOTAL 4.2% 170,365 163,443 100.0% 100.0% El Camino Real and Midtown % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL FOOD PRODUCTS -3.6% 149,218 154,811 81.7%81.1% GENERAL RETAIL -5.9% 30,321 32,239 16.6%16.9% ALL OTHER -19.1% 3,032 3,747 1.7%2.0% TOTAL -4.3% 182,572 190,798 100.0% 100.0% Greater Downtown % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL FOOD PRODUCTS 7.0% 521,829 487,827 63.4%63.8% GENERAL RETAIL 17.3% 260,543 222,177 31.6%29.1% BUSINESS TO BUSINESS -15.0% 32,833 38,641 4.0%5.1% MISCELLANEOUS 31.3% 8,068 6,143 1.0%0.8% CONSTRUCTION -99.7% 35 10,017 0.0%1.3% TRANSPORTATION 0.0%0 0 0.0%0.0% TOTAL 7.6% 823,307 764,805 100.0% 100.0% Stanford Shopping Center % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL GENERAL RETAIL 4.9% 1,304,771 1,244,093 87.3%80.0% FOOD PRODUCTS -17.4% 132,216 160,132 8.8%10.3% ALL OTHER -61.2% 58,425 150,683 3.9%9.7% TOTAL -3.8% 1,495,412 1,554,908 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q3 to 2025Q3 (Economic) ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 10 Town And Country Shopping Center % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL FOOD PRODUCTS 5.2% 118,209 112,356 59.8%61.3% GENERAL RETAIL 3.7% 73,429 70,839 37.1%38.6% ALL OTHER 5048.5% 6,073 118 3.1%0.1% TOTAL 7.9% 197,710 183,313 100.0% 100.0% All Other Geos Combined % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL GENERAL RETAIL 5.9% 1,774,914 1,675,242 33.9%26.7% TRANSPORTATION -5.7% 1,239,400 1,314,344 23.7%20.9% FOOD PRODUCTS 4.4% 1,199,755 1,149,563 22.9%18.3% BUSINESS TO BUSINESS -56.6% 888,201 2,046,020 17.0%32.6% MISCELLANEOUS 57.5% 96,072 61,013 1.8%1.0% CONSTRUCTION -2.4% 31,894 32,665 0.6%0.5% TOTAL -16.7% 5,230,236 6,278,847 100.0% 100.0% All Other Geo Area Totals with Balance of Jurisdiction Comparison 25Q3 & 24Q3 % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL Balance of Jurisdiction -31.0% 2,360,869 3,421,581 45.1%54.5% Stanford Shopping Center -3.8% 1,495,412 1,554,908 28.6%24.8% Greater Downtown 7.6% 823,307 764,805 15.7%12.2% Town And Country Shopping Center 7.9% 197,710 183,313 3.8%2.9% El Camino Real and Midtown -4.3% 182,572 190,798 3.5%3.0% California Avenue 4.2% 170,365 163,443 3.3%2.6% TOTAL -16.7% 5,230,236 6,278,847 100.0% 100.0% Palo Alto citywide QE 25Q3 & 24Q3 % CHANGE QoQ 2025Q3 QE 2024Q3 QE 25Q3 % OF TOTAL 24Q3 % OF TOTAL GENERAL RETAIL 15.5% 2,128,953 1,842,890 31.5%25.8% FOOD PRODUCTS 5.6% 1,458,554 1,381,790 21.6%19.4% BUSINESS TO BUSINESS -34.9% 1,446,306 2,221,607 21.4%31.1% TRANSPORTATION -5.7% 1,242,085 1,317,354 18.4%18.5% MISCELLANEOUS 40.3% 364,733 259,926 5.4%3.6% CONSTRUCTION 10.5% 127,346 115,289 1.9%1.6% TOTAL -5.2% 6,767,977 7,138,856 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q3 to 2025Q3 (Economic) Cont. ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 11 FOOD PRODUCTS, 10.4%CHANGE, $110,405 , 64.8%TOTAL GENERAL RETAIL, 2.0% CHANGE, $25,986 , 15.3%TOTAL ALL OTHER, -10.5% CHANGE, $33,974 , 19.9%TOTAL California Avenue 2025Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $99,992 , 61.2%TOTAL GENERAL RETAIL, $25,473 , 15.6%TOTAL ALL OTHER, $37,977 , 23.2%TOTAL California Avenue 2024Q3 SALES TAX AMOUNTS FOOD PRODUCTS, -3.6%CHANGE, $149,218 , 81.7%TOTAL GENERAL RETAIL, -5.9% CHANGE, $30,321 , 16.6%TOTAL ALL OTHER, -19.1% CHANGE, $3,032 , 1.7%TOTAL El Camino Real and Midtown 2025Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $154,811 , 81.1%TOTAL GENERAL RETAIL, $32,239 , 16.9%TOTAL ALL OTHER, $3,747 , 2.0%TOTAL El Camino Real and Midtown 2024Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 12 FOOD PRODUCTS, 7.0%CHANGE, $521,829 63.4%TOTAL GENERAL RETAIL, 17.3% CHANGE, $260,543 , 31.6%TOTAL BUSINESS TO BUSINESS, -15.0% CHANGE, $32,833 , 4.0%TOTAL MISCELLANEOUS, 31.3% CHANGE, $8,068 , 1.0%TOTAL CONSTRUCTION, -99.7% CHANGE, $35 , 0.0%TOTAL Greater Downtown 2025Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $487,827 , 63.8%TOTAL GENERAL RETAIL, $222,177 , 29.1%TOTAL BUSINESS TO BUSINESS, $38,641 , 5.1%TOTAL MISCELLANEOUS, $6,143 0.8%TOTAL CONSTRUCTION, $10,017 1.3%TOTAL Greater Downtown 2024Q3 SALES TAX AMOUNTS GENERAL RETAIL $1,244,093 80.0%TOTAL FOOD PRODUCTS, $160,132 10.3%TOTAL ALL OTHER, $150,683 9.7%TOTAL Stanford Shopping Center 2024Q3 SALES TAX AMOUNTS GENERAL RETAIL, 4.9% CHANGE, $1,304,771 87.3%TOTALFOOD PRODUCTS, -17.4% CHANGE $132,216 , 8.8%TOTAL ALL OTHER, -61.2% CHANGE $58,425 , 3.9%TOTAL Stanford Shopping Center 2025Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 13 FOOD PRODUCTS, 5.2%CHANGE, $118,209 , 59.8%TOTAL GENERAL RETAIL, 3.7% CHANGE, $73,429 , 37.1%TOTAL ALL OTHER, 5048.5% CHANGE, $6,073 , 3.1%TOTAL Town And Country Shopping Center 2025Q3 SALES TAX AMOUNTS FOOD PRODUCTS, $112,356 , 61.3%TOTAL GENERAL RETAIL, $70,839 , 38.6%TOTAL ALL OTHER, $118 , 0.1%TOTAL Town And Country Shopping Center 2024Q3 SALES TAX AMOUNTS GENERAL RETAIL, 5.9%CHANGE $1,774,914 , 33.9%TOTAL TRANSPORTATION, -5.7% CHANGE, $1,239,400 23.7%TOTAL FOOD PRODUCTS, 4.4% CHANGE $1,199,755 , 22.9%TOTAL BUSINESS TO BUSINESS, -56.6% CHANGE, $888,201 17.0%TOTAL MISCELLANEOUS, 57.5% CHANGE, $96,072 , 1.8%TOTAL CONSTRUCTION, -2.4% CHANGE, $31,894 , 0.6%TOTAL All Other Geos Combined 2025Q3 SALES TAX AMOUNTS GENERAL RETAIL, $1,675,242 , 26.7%TOTAL TRANSPORTATION, $1,314,344 , 20.9%TOTAL FOOD PRODUCTS, $1,149,563 , 18.3%TOTAL BUSINESS TO BUSINESS, $2,046,020 , 32.6%TOTAL MISCELLANEOUS, $61,013 , 1.0%TOTAL CONSTRUCTION, $32,665 , 0.5%TOTAL All Other Geos Combined 2024Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts ATTACHMENT A City of Palo Alto neumo.com (800) 800-8181 Page 14 GENERAL RETAIL, 15.5% CHANGE, $2,128,953 , 31.5%TOTAL FOOD PRODUCTS, 5.6% CHANGE, $1,458,554 , 21.6%TOTAL BUSINESS TO BUSINESS, -34.9% CHANGE, $1,446,306 , 21.4%TOTAL TRANSPORTATION, -5.7% CHANGE, $1,242,085 , 18.4%TOTAL MISCELLANEOUS, 40.3% CHANGE, $364,733 , 5.4%TOTAL CONSTRUCTION, 10.5% CHANGE, $127,346 , 1.9%TOTAL Palo Alto citywide 2025Q3 SALES TAX AMOUNTS GENERAL RETAIL, $1,842,890 , 25.8%TOTAL FOOD PRODUCTS, $1,381,790 , 19.4%TOTALBUSINESS TO BUSINESS, $2,221,607 , 31.1%TOTAL TRANSPORTATION, $1,317,354 , 18.5%TOTAL MISCELLANEOUS, $259,926 , 3.6%TOTAL CONSTRUCTION, $115,289 , 1.6%TOTAL Palo Alto citywide 2024Q3 SALES TAX AMOUNTS Balance of Jurisdiction, -31.0%CHANGE, $2,360,869 , 45.1%TOTAL Stanford Shopping Center, -3.8% CHANGE, $1,495,412 , 28.6%TOTAL Greater Downtown, 7.6% CHANGE, $823,307 , 15.7%TOTAL Town And Country Shopping Center, 7.9% CHANGE, $197,710 , 3.8%TOTAL El Camino Real and Midtown, -4.3% CHANGE, $182,572 , 3.5%TOTAL California Avenue, 4.2% CHANGE, $170,365 , 3.3%TOTAL All Other Geo Area Totals with Balance of Jurisdiction Comparison 2025Q3 SALES TAX AMOUNTS Balance of Jurisdiction, $3,421,581 , 54.5%TOTAL Stanford Shopping Center, $1,554,908 , 24.8%TOTAL Greater Downtown, $764,805 , 12.2%TOTAL Town And Country Shopping Center, $183,313 , 2.9%TOTAL El Camino Real and Midtown, $190,798 , 3.0%TOTAL California Avenue, $163,443 , 2.6%TOTAL All Other Geo Area Totals with Balance of Jurisdiction Comparison 2024Q3 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts ATTACHMENT A