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Consultant outlines Chico sales- and transaction-tax mechanics, short-term outlook
Summary
HDL Companies provided an overview of sales-and-use tax sources, pool allocations and Measure H impacts for Chico; staff and council heard that statewide sales tax growth has slowed and that Chico’s Measure H receipts should rise slightly in 2025–26.
Kent Nordhoff of HDL Companies presented an overview of how California sales- and use-tax revenues are collected, allocated and distributed to local jurisdictions and gave Chico-specific data during the Aug. 19 City Council meeting.
Nordhoff explained the difference between point-of-sale (Bradley-Burns) allocations and pooled indirect allocations from out-of-state and online sales. He said the California Department of Tax and Fee Administration (CDTFA) allocates direct place-of-sale revenues to cities and distributes use-tax pools formulaically to counties and cities; in the most recent…
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