Second Quarter Sales Tax Returns in City Signals Continued Pandemic Recovery and Heightened Retail Trends

As the Southern California region continues to emerge from the pandemic and the fiscal effects of its economic impacts, the City of Menifee saw continued gains with its second-quarter sales tax returns, experiencing a 43.6% growth from April to June 2021 (excluding aberrations), compared to the same quarter in 2020 (which was the most adversely impact sales tax period related to the pandemic).

Restrictions including the shelter-in-place directive by the State, along with indoor dining restrictions, non-essential brick-and-mortar store closures, and remote working reducing commuter fuel sales and commuting traffic, significantly reduced sales tax generation for cities resulting in higher-than-normal percentage gains, as predicted by economists. With businesses now fully opened and residents and visitors dining, shopping, and resuming pre-pandemic purchasing patterns, the city experienced substantial growth from most business types in general consumer-good sectors, including electronics/appliance stores, home furnishings, family apparel, casual dining, and specialty stores. Positive increases also came from building materials, including garden/agricultural, equipment rentals, service stations, and autos-transportation.

“The early signs of recovery and the pent-up demand for amenities and shopping in Menifee are positively affecting Menifee’s existing businesses in 2021 after many industries faced months of closures and restrictions, including positively affecting our attraction efforts for additional development in the city to meet the needs of our community and regional trade area,” said Menifee’s City Manager Armando G. Villa.

Menifee’s Quality of Life Measure (Measure DD) Transaction and Use receipts mirrored the growth for the second quarter of 2021 of the city’s sale tax receipts. Funding from the Quality of Life Measure provides vital services within Menifee such as Police and Fire services, road maintenance and repairs, and Capital Improvement Projects.
To view the comprehensive second-quarter report provided by HDL on the City of Menifee Sales Tax click here.