By Brittney Sherman — News, small business, large business
The first quarter of 2025 marks the first time in two years that the state of California received a positive year-over-year sales tax result. During that same timeframe Santa Clara County sales tax was down 2.2%, Bay Area sales tax was up 0.5% and City of Morgan Hill sales tax was up 0.1%. Much of the City’s positivity can be attributed to a statewide audit on online sales, leading to reallocations in the County pool which resulted in Morgan Hill’s share increasing 2.1% when compared to this same quarter last year.
The City’s Auto and Transportation category declined in alignment with nationwide industry results, the Fuel and Service Station category decreased due to a reduction in the price of crude oil, and the General Consumer Goods category declined signaling a shift from instore to online shopping. The first quarter of the year historically yields the lowest sales tax generation. Starting the year with a positive sales tax report is hopefully an indicator of additional positive results to come.
Read the full first quarter 2025 sales tax report HERE.