In a sign that West Hollywood’s economy is improving, sales tax receipts for the third quarter of last year increased by 2.6 percent over the same period in 2012 and actual sales revenue increased by 5.6 percent.
The numbers, compiled by HdL Companies are especially impressive given results for the third quarter of 2012, when sales tax receipts declined by 6.8 percent from the same quarter the year before.
The HdL report says that sales increased among building contractors and among wholesalers and retailers of textiles and home furnishings. Another category that saw an increase was restaurants and hotels, the second largest category after general consumer goods. HdL attributed the rise in that category to the opening of new restaurants. Indeed, six of the top 25 generators of sales tax receipts in West Hollywood in the third quarter were restaurants, with Connie & Teds, which opened only last June, being one of them. Other restaurants on the Top 25 list, in alphabetical order, are BOA Steakhouse, Cecconis, the Mondrian hotel and its Asia de Cuba restaurant (now replaced by Herringbone), Riva Bella and Saddle Ranch Chop House. (The report does not disclose actual sales or sales tax receipts of individual businesses). Increases also were seen in the general categories of Business and Industry, Building and Construction and Autos and Transportation.
In a breakdown of general categories into the 15 top sales generating categories, dining accounted for the largest revenue by far, with Casual Dining and Fine Dining amounting to $749,000. or 13 percent of overall sales of $6 million for the quarter.
The West Hollywood sales revenue increase of 5.6 percent for the third quarter beat that of 4.5 percent for Los Angeles County overall. The Southern California region was up 5.3 percent.
The HdL report also showed that sales revenue per capita in West Hollywood was significantly higher than that in Los Angeles County and California, which undoubtedly reflects the fact that WeHo, a city of a little more than 34,000 people, is a major shopping, dining and nightlife destination. While third quarter 2013 revenue per capita for West Hollywood exceeded $8,000, it was between $3,000 and $4,000 in the county and state overall.
HdL will report in March on sales and tax receipts for the fourth quarter of 2013, which covers October through December.