Cerritos Economic Development Commission Reviews Third-Quarter Sales Tax Report as Local Economy Holds Steady

February 9, 2026

By Brian Hews, [email protected]

The Cerritos Economic Development Commission is reviewing a third-quarter 2025 sales tax update at its meeting tomorrow, with city officials reporting stable economic performance despite broader regional and statewide market pressures.

According to the staff report prepared for the commission, Cerritos’ core taxable sales for the period covering July through September 2025 remain essentially flat compared to the same quarter last year, reflecting steady local economic activity even as consumers face higher prices, tighter financing conditions, and lingering inflationary pressures.

The quarterly analysis is conducted by the city’s sales tax consultant, Hinderliter, de Llamas & Associates, which evaluates local sales tax performance and provides a summary to city officials. The report indicates that Los Angeles County taxable sales also remain consistent during the same period, while the broader Southern California region posts modest growth. Cerritos continues to benefit from a diverse commercial base that helps absorb fluctuations in individual sectors.

Autos and transportation, general consumer goods, and business and industry remain the largest contributors to Cerritos’ sales tax revenue. However, the report notes declines in new motor vehicle dealer receipts, driven by higher vehicle prices, restrictive lending conditions, and reduced consumer purchasing power. Fuel and service station revenue also declines as increased global petroleum supplies contribute to lower gas prices, resulting in reduced tax collections.

Despite those headwinds, several retail categories show stability or modest improvement. Family apparel and department stores benefit from back-to-school shopping activity, while auto leasing increases as improved inventory availability allows dealerships to offer more competitive leasing options. Additional revenue support comes from allocations from the countywide use tax pool, reflecting continued growth in online shopping, along with contributions from newly opened businesses within the city.

The report cautions that some gains reflected in the quarter are influenced by one-time accounting adjustments tied to statewide reporting anomalies. When those irregularities are removed, underlying taxable sales activity in Cerritos remains largely unchanged year over year, reinforcing the city’s overall economic stability.

City staff state that Cerritos’ third-quarter performance aligns with the city’s strategic goal of maintaining a resilient and diversified local economy. Ongoing quarterly monitoring is used to guide business retention efforts, evaluate sector-specific trends, and support long-term fiscal planning.

The staff report concludes that while market conditions remain challenging, Cerritos continues to demonstrate steady performance supported by a balanced mix of retail, automotive, and service-oriented businesses. The Economic Development Commission is expected to review and discuss the report during tomorrow’s meeting.