2024 Sales Tax Update- Fourth Quarter

Upland’s Sales Tax Revenue: Modest Growth Amid Economic Challenges

The latest sales tax data for the fourth quarter of 2024 paints a mixed picture—one that reflects both the economic pressures facing families and the steady resilience of our local economy in key areas.

From October through December, Upland’s sales tax receipts saw a modest increase of 0.5% compared to the same period in 2022. However, this growth was primarily due to delayed payments received during the quarter that were actually owed from the prior period. When we remove these one-time factors, the true numbers show a 3.9% decline in taxable sales.

The primary contributors to this decline were reduced spending in the auto and transportation sector, as many residents delayed major purchases due to ongoing economic uncertainty. Additionally, lower fuel prices—while good for families at the pump—meant less tax revenue coming in from our local service stations compared to the elevated prices seen last year.

That said, not all the news is negative. Our construction and building sector showed encouraging strength, outperforming the statewide trend despite the broader slowdown in the housing market. Home improvement and commercial construction activity helped support our local economy. We also saw strong returns from the countywide use-tax pool, driven by robust regional spending on industrial and building-related goods—again outpacing statewide averages.

Zooming out, San Bernardino County as a whole experienced a 1.4% increase in taxable sales during this period, while the broader Southern California region posted a 1.4% decline. Upland’s performance, especially in construction-related sectors, reflects a community that continues to push forward even when economic conditions are challenging.

As always, I remain committed to prudent fiscal stewardship and long-term economic planning that puts Upland families and small businesses first. I’ll continue to share these updates regularly so that you can stay informed and engaged in the financial direction of our city.

— Councilmember James Breitling

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