Sales Tax Figures for 1Q-2021
The City has received its sales tax figures for the first quarter of 2021, which shed some light on how Moorpark businesses are and are not recovering from the economic impacts of the COVID-19 pandemic. Mirroring trends in the global economy, negative impacts began in the first quarter of 2020 as businesses closed and consumers stayed home. Things got worse in the second quarter of 2020, and then have been gradually improving as businesses increasingly reopen. Data shows that, while business in Moorpark is improving overall, the economy has still not yet recovered to pre-pandemic levels.
Raw Data: Moorpark Outperforming Other Areas
Adjusted for anomalies (such as the state's sales tax deferral program that allowed businesses to delay payment of sales taxes in the first quarter of 2020), first quarter sales taxes in 2021 increased from $954,590 in 2020 to $1,081,231 in 2021. That represents an increase of 13.3%, slightly ahead of the 13.0% increase for Ventura County and significantly better than the 9.5% increase for California as a whole.
Some Sectors Recovering, Others Struggling
Mirroring trends across the region, some sectors of the Moorpark economy are thriving. Sales in the Autos/Transportation sector, Buildings/Construction sector, and general retailers are performing positively in year-over-year comparisons. However, restaurants - especially sit-down restaurants - continue to suffer from depressed sales, as well as other tourism and travel-related sectors of the economy.
Sales Activity Still Below Pre-Pandemic Levels
Even after several quarters of increasing sales, however, per capita sales taxes paid at Moorpark's physical retailers remain approximately 10% below pre-pandemic levels. The accelerated shift to online shopping caused by the pandemic also accelerated the negative impacts on in-person physical retailers in both Moorpark and across the region, state, and country.
Online sales also result in less sales tax revenue to the City to provide municipal services, compared to in-person sales. Due to California's distribution formulas for online sales taxes, a disproportionate of online sales taxes for products delivered to Moorpark actually go to other jurisdictions in Ventura County, including Thousand Oaks, Camarillo, and especially Oxnard. Thus, even factoring in online sales taxes, City sales tax revenues remain approximately 2.4% below pre-pandemic levels. To help address this impact of online sales, the City continues to support legislation in Sacramento to more fairly allocate online sales taxes to the jurisdictions where products are delivered.
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