Sales Tax Revenue Forecast

This report forecasts Claremont’s sales tax revenue through 2026 using data from 2010–2024 and accounts for economic trends, consumer behavior, and COVID-19 recovery. Revenue is projected to grow by 3.32% in 2025 and 3.70% in 2026, led by the auto and hospitality sectors. Our model outperforms the City’s 2% baseline and incorporates key variables like unemployment and weather. To boost revenue, we recommend implementing policies supporting local businesses and improved data collection to enhance future forecasts.