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SBCTA Anticipates Impact of Coronavirus on Sales Tax Revenue

May 11, 2020

Sales tax revenue collections for Measure I 2010 through 2040 began on April 1, 2010. Cumulative total receipts for Fiscal Year 2019/2020 as of March 31, 2020 were $142,495,143.

The quarterly receipts represent sales tax collection from the previous quarter taxable sales. For example, receipts for January through March represent sales tax collections from October through December. Measure I revenue for the Fiscal Year 2019/2020 Budget was estimated to be $166,900,000. Actual Measure I receipts for 3rd quarter Fiscal Year 2019/2020 are $49,729,997, in comparison to $46,035,191 received during the 3rd quarter in the prior year, an increase of 8.03%.

The economy has been negatively impacted by the Coronavirus. Additionally, the Governor issued an Executive Order that will allow businesses generating less than $1,000,000 in annual sales to delay filing for 90 days (until July 31, 2020) and allow businesses with up to $50,000 in total sales tax liability to receive a loan of up to 12 months (until July 31, 2021) with no interest or penalties. The impact of the Coronavirus and deferral of sales tax payments is uncertain until the breadth of the crisis is fully understood. SBCTA remains conservative on estimating sales tax and will monitor the economy and the impact on sales tax revenues.

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