Laserfiche WebLink
8.A. - Page 32 of 104 <br />Sales Tax <br />Approximately 21% of Redwood City's operating revenues come from <br />sales tax. This is a primary concern during the pandemic due to nationwide <br />reductions in consumer spending for fuel, entertainment, dining, new cars, <br />travel and various services. <br />While several of Redwood City's larger generators of sales tax can expect <br />reduced revenues in the economic downturn, all are still open for <br />business. In addition, some reduction in sales tax due to pandemic <br />closures has been offset by an increase in sale tax revenues accrued <br />through resident online purchases. The recent move to more electronic <br />shopping during shelter -in-place coincides with a new allocation of sales <br />tax by the purchaser's point -of -origin resulting from the U.S. Supreme <br />Court decision in South Dakota vs. Wayfair, Inc., which enabled state and <br />local governments to recoup tax revenue formerly lost to remote sellers. <br />This new influx of formerly lost sales tax has offset some of the recent <br />reduction in sales tax revenue, softening the initial impact of the recession <br />on Redwood City. <br />Redwood City's Largest <br />Sales Tax Generators <br />Boardwalk Chevrolet <br />Carlsen Motor Cars <br />Central Concrete Supply <br />Chevron Service Stations <br />Costco Wholesale <br />Davies Appliance <br />Eat Club <br />Enterprise Rent-A-Car <br />Ferrari Maserati <br />Graniterock <br />Land Rover <br />Poshmark <br />Putnam Lexus <br />Roberts & Brune Co. <br />Safeway Stores <br />Shutterfly <br />Target Stores <br />Towne Ford Sales <br />Toyota <br />Redwood City sales tax revenue has grown in recent years from a bustling economy and the passage in <br />November 2018 of the Essential Services Protection Measure RR, which levied a one-half of one percent <br />sales tax in the City. After suffering a downturn from the 2020 recession, our state and local sales tax <br />advisors are projecting a sales tax recovery similar to national forecasts of a slow overall economic <br />recovery. <br />Sales Tax Revenue Forecast <br />45,000 Actual Projected <br />40,000 <br />35,000 <br />30,000 <br />25,000 <br />20,000 — <br />15,000 — <br />10,000 — <br />tih <br />,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo ,yo <br />F, Fl <1 <1 Fa <1 <1 F, F, <1 <, F, F, F, Fk "A <br />BUDGET MESSAGE 401 <br />