Morgan Hill’s 3rd quarter 2023 sales tax results showed 2% growth, while the Bay Area and California were down 3% and 1.6% respectively. Morgan HIll’s major contributors were from the Auto/Transportation, Food/Drug, Building/Construction and Business/Industry sectors. The City’s top 25 sales tax producing businesses grew a collective 17%, accounting for approximately 61% of all sales tax revenue generated into the General Fund.
The first quarter 2023 sales tax results showed minimal growth for Santa Clara County (+0.2%) and reductions for the City of Morgan Hill (-1.1%) and California statewide (-1.1%). When compared to first quarter 2022, Morgan Hill’s Autos and Transportation State and County Pools, and Restaurant and Hotel industry groups all experienced growth, while it’s Fuel and Service Station, Business and Industry, and Building and Construction groups showed losses. Significant nationwide decreases in the price of gas (20%) and the price of lumber (60%), in addition to a decline in citywide electronic sales, are the main factors behind the City’s negative first quarter sales tax results. However, the top 25 sales tax generating businesses citywide continue to be largely represented by auto dealers, big box retailers, grocery stores, and gas stations.
Statewide, California sales tax results for the 2022/2023 fiscal year are projected to yield a 2.2% growth, where it’s 2023/2024 fiscal year is projecting a 0.7% decrease.
The 2Q2022 sales tax revenue report has been released. View the full report HERE or skim the high level takeaways below. Although sales tax collections continue to soar quarter over quarter, experts predict much slower growth towards the end of 2022 and into 2023, as actions to curb inflation are implemented and comparisons between pandemic and post-pandemic sales tax revenue months become obsolete.
- Between the months of April-June, Santa Clara County Sales Tax collections grew 8.7% and Morgan Hill Sales Tax collections grew 10.5%, compared to these same months last year.
- After seven quarters of consistent growth, collections from the auto and transportation group dipped, mostly due to rising interest rates and inflation.
-Conversely, rising fuel costs and the return of travel activity resulted in service station collections increasing 35% over 2021.
- Morgan Hill’s business and industry group experienced an increase in collections, thanks to electrical equipment and light industrial materials sales.
- Statewide, local one cent sales and use tax increased 10% over 2021, marking the sixth consecutive quarter of double digit growth.
Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov
In this eNewsletter, you will find information about key efforts that impact our business community including:
· 1st Quarter Sales Tax Overview
· Business License Renewals
· CalCompetes Tax Credit and Grant Program Cycle #2
· Magnolias Apartment Project to Include Farmworker Housing
· Silicon Valley Business Journal Event - Meet Morgan Hill
· Together at National Night Out
· Urbn Ranch, Crumbl Cookie, Bloom, MOHI Farm, and
Bath & Body Works
· Business Resources
Read the July 2022 eNewsletter HERE and reach out to the team if you have any questions or want to connect with us. Thank you for continuing to “Choose Morgan Hill.”
Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov
Here are a few key takeaways from Morgan Hill's 1st Quarter 2022 sales tax numbers:
-Santa Clara County sales tax collections grew 14% and Morgan Hill collections grew 8.4%, as compared to this same quarter last year.
-Receipts from local Morgan Hill brick and mortar purchases rose 9.3% compared to 2021, supporting the continued trend of buying locally.
Sales tax collected from service stations rose 52% compared to 2021, as a result of increased gas prices and the continued return of commuter travel.
Casual dining and quick-service restaurants continued their upward trend, marking the 4th full quarter in a row where restaurant receipts have increased.
Morgan Hill’s Q2 Sales Tax Update, spanning the months of April-June 2021, has just been released. Here are some high level takeaways-
-Sales tax revenue for the city this quarter was up 30.5%, a number higher than the county but lower than the state.
-Compared to Q2 2020, the Auto/Transportation Industry showed significant growth of more than $225,000 in alignment with the statewide trend of increased auto and RV sales and pricing.
- Restaurant/Hotel and Fuel/Service Industries grew $100,000 each in comparison to Q2 2020, most likely due to the reopening of the economy and the return of commuters to the workplace. Building/Construction numbers also increased mainly due to the rise in steel and lumber prices.
-The Food/Drug Industry numbers stayed flat, as there were minimal disruptions to this industry during the pandemic.
Have questions? please contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov
This report is provided by HdL Companies, a leading provider of revenue and key economic insights to local government agencies since 1983.
