SUPPLEMENTAL - Laserfiche WebLink

SUPPLEMENTAL MATERIAL 1 Responses to City Council Agenda Items – January 9, 2025 Workshop Agenda Item #1 (Budget Update, Budget Principles and Key Financial Policies) 1. Has online sales tax offset the City’s loss in “brick and mortar” sales tax? A. At the March 19th Council Meeting, the City Council requested information regarding Pleasanton’s share of sales tax allocation from the county pool over time. Attached please find a report provided by HdLshowing the allocations between calendar years 2014 and 2023. Please refer to the two rows highlighted in blue for Pleasanton’s allocations. As noted in the report, AB 147, California's New Online Sales Tax Collection Law, was enacted in 2019 and fully implemented in 2020. California now requires out-of-state and online retailers to collect sales taxes. With the enactment of AB 147, the allocations to cities increased significantly. Pleasanton’s allocation increased from $3.3M in 2018 to $3.9M in 2019. The allocation to the City has remained at about $4.9M over the last two years. While the increase from the county pool allocation helped to offset the decrease in revenue from the Stoneridge Shopping Center, the decline impacted our overall revenue growth. The Stoneridge Mall used to generate more than $4.5M in sales tax revenue per year, and now it is only generating about $2.5M per year.