Newport sales tax revenue rises 9.3%
In step with rising sales tax revenue throughout Southern California, Newport Beach’s tax revenue from sales at local businesses was up 9.3% in the first quarter of the 2014-15 fiscal year, compared with a year earlier, according to a report circulated by the city.
The total was $7.9 million from July through September 2014, the report states. The fiscal year runs July 1 through June 30.
Newport Beach experienced a strong quarter for new motor vehicles, boats, motorcycles and auto leases, according to the report, published by HdL Cos., a Diamond Bar-based financial auditing organization.
Sales tax revenue for Southern California increased by 5.1%, the report says.
Experts say falling gas prices have helped pick up the automotive industry. Fuel prices plunged to a five-year low in December, and expanded North American oil production, fuel-efficiency gains and a sluggish international economy are expected to hold down gas prices through much of 2015, the report states.
For a typical family, that translates into savings of $50 to $75 per month that can be spent on other taxable items such as eating out or traveling, experts say.
Home furnishings, fine dining, transportation and automotive service all produced increased sales tax revenue in Newport Beach, data show.
—Hannah Fry