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HomeMy WebLinkAboutFS 2013-09-17 Item 2D - Report - 2nd Quarter 2013 Sales Tax and Miscellaneous Revenue ReportTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: September 10, 2013 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 2nd Quarter 2013 Schedule I - Sales Tax in $1,000's Total sales tax collections for the second quarter were $287K above the same quarter in the previous year. New construction sales tax collection for second quarter was 151K higher compared to the same quarter in the previous year resulting in 80% increase. Much of this activity include additions /alterations to commercial and industrial buildings. As of June 30th, the City has collected $551,517 in sales tax mitigation, which is 47% of the annual mitigation budget. 25 2012 Actual 2013 Actual YOY Change -- Month -- New I Other I Total Construc- I Industries I New I Construc Other I Industries I Total New Construction I Amount % I Other Industries I Total Amount % I Amount % Collected Recd tion tion Jan Mar $ 85 $ 944 ! $ 1,029 $ 76 $ 1,038 $ 1,114 $ (9) -11 %! $ 94 10 %I $ 85 8% Feb Apr 631 1,0361 1,099 771 1,1271 1,204 14 22%! 91 9%! 105 10% Mar May 48 j 1,174 i 1,222 86 1 1,191 � 1,277 38 79 %i 17 1 %i 55 5% Q -1 Totals $ 196 ; 3,154 ; $ 3,350 $ 239 ; 3,356 ; $ 3,595 $ 43 22 %, 202 6 %, $ 245 7% Apr Jun 58 1,070 ! 1,128 117 ! 1,109 ! 1,226 59 102% 39 4%! 98 9% May Jul 58 I 1,128 1 1,186 119 I 1,165 j 1,284 61 105 %I 37 3%j 98 8% Jun Aug 73 1,204. 1,277 104 ' 1,264 1,368 32 42 %: 60 5 %. 91 7% Q -2 Totals $ 189 3,402 ! $ 3,591 $ 340 ! 3,538 $ 3,878 $152 80 %I 136 4 %, $ 287 8% Jul Sep 731 1,1641 1,237 I I - I I Aug Oct 71 1,215 i 1,286 I 1 - I I Sep Nov 113 1,181: 1,294 - Q-3 Totals $ 257 I 3,560 ! $ 3,817 $ - I - I $ - $- 0 %1 - 0%! $ - 0% Oct Dec 106 1,100 i 1,206 I I 1 I Nov Jan 92 ; 1,230 ; 1,322 - Dec Feb 123 ! 1,634 ! 1,757 1 1 - I I Q -4 Totals $ 321 j 3,964 1 $ 4,285 $ - j - 1 $ - $- 0 %j - 0 %j $ - 0% Totals $ 963 14,080 ; $ 15,043 $ 579 ; 6,894 ; $ 7,473 $195 -40 %; 338 -51 %; $ 532 -50% Total sales tax collections for the second quarter were $287K above the same quarter in the previous year. New construction sales tax collection for second quarter was 151K higher compared to the same quarter in the previous year resulting in 80% increase. Much of this activity include additions /alterations to commercial and industrial buildings. As of June 30th, the City has collected $551,517 in sales tax mitigation, which is 47% of the annual mitigation budget. 25 INFORMATIONAL MEMO Page 2 Sales tax collections through second quarter are 51 % of the the annual budget. Projections for the remaining months of the year assumes a 5.43% increase over monthly budget. -- Month -- Collected Rec'd 2012 2013 2014 Actual Budget Actual Variance [Act Over(Under) Bdgt] Amt % Projection Budget Projection Jan Mar $ 1,029 $ 1,052 $ 1,114 $ 62 6% $ 1,114 $ 1,080 $ 1,200 Feb Apr 1,099 1,035 1,204 169 16% 1,204 1,072 ! 1,200 Mar May 1,222 1,248 1,277 29 2% 1,277 1,277 j 1,300 Q -1 Totals $ 3,350 $ 3,335 3,595 $ 260 8% $ 3,595 $ 3,429 3,700 Apr Jun 1,128 1,120 1,226 106 9% 1,226 1,153 1,300 May Jul 1,186 1,148 1,284 136 12% 1,284 1,183 I 1,300 Jun Aug 1,277 1,290 1,368 78 6% 1,368 1,316 1,400 Q -2 Totals $ 3,591 $ 3,558 $ 3,878 $ 320 9% $ 3,878 $ 3,652 4,000 Jul Sep 1,237 1,269 1,338 1,293 1,370 Aug Oct 1,286 1,212 1,278 1,243 1,317 Sep Nov 1,294 1,250 1,318 1,280 ; 1,356 Q -3 Totals $ 3,817 $ 3,731 $ - $ - $ 3,934 $ 3,816 1 4,043 Oct Dec 1,206 1,142 1,204 1,171 : 1,241 Nov Jan 1,322 1,195 1,260 1,231 1,304 Dec Feb 1,757 1,668 1,759 1,711 1,813 Q -4 Totals $ 4,285 $ 4,005 $ - $ - $ 4,222 $ 4,113 , 4,357 Totals $ 15,043 $ 14,629 $ 7,473 $ 580 $15,629 $ 15,010 16,100 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 27 INFORMATIONAL MEMO Page 3 Below is a graph of businesses by type of industry showing overall change through second quarter 2012 revenue receipts to collections through second quarter 2013. $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 s- $(25,000) $(50,000) YTD Change by Category $195,711 Construction Services $152,405 Miscellaneous $121,905 Retall $106,592 Trade Trnsp /Wrhsng $848 Manufacturing 5[3 9111 Automotive WholesaleTrade 5(28 879) $(12,450) The miscellaneous category include activities from unclassifiable establishments. Variance from this category is due to first quarter activity from trust type organizations, which are not reported under a specific NAICS code. Additional explanation causing the large variance is explained in the next section. W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 29 INFORMATIONAL MEMO Page 4 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Construction of Buildings categeory had the highest year over year increase at $211,506 followed by General Merchandise Stores. One large contractor is working on multiple projects valued at over $5 million. Heavy & Civil Contruction and Specialty Trade Contractors category had a net decrease of $15,795 combined. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 963,686 $ 865,534 $ 98,152 11.34% * 448 Clothing and Accessories $ 934,443 $ 930,020 $ 4,423 0.48% * 722 Food Services, Drinking Places $ 742,481 $ 722,519 $ 19,962 2.76% * 423 Wholesale Trade, Durable Goods $ 446,388 $ 472,780 $ (26,392) - 5.58% * 443 Electronics and Appliances $ 444,683 $ 581,371 $ (136,687) - 23.51% 236 Construction of Buildings $ 408,390 $ 196,884 $ 211,506 107.43% * 453 Miscellaneous Store Retailers $ 322,763 $ 273,378 $ 49,385 18.06% * 441 Motor Vehicle and Parts Dealer $ 287,852 $ 301,943 $ (14,091) - 4.67% * 444 Building Material and Garden $ 278,423 $ 243,984 $ 34,439 14.12% * 451 Sporting Goods, Hobby, Books $ 259,161 $ 264,648 $ (5,487) - 2.07% * Mitigated NAICS Code Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Gross sales from three large electronic retailers in the City are 25% lower this quarter compared to the same quarter in the previous year. Schedule III YTD YTD Dollar % Group Name Current Prior Diff. Diff. * 443 Electronics and Appliances $ 444,683 $ 581,371 $ (136,687) - 23.51% * 423 Wholesale Trade, Durable Goods $ 446,388 $ 472,780 $ (26,392) - 5.58% 238 Specialty Trade Contractors $ 148,494 $ 166,169 $ (17,675) - 10.64% * 441 Motor Vehicle and Parts Dealer $ 287,852 $ 301,943 $ (14,091) - 4.67% 518 Internet Service Providers $ 13,249 $ 24,921 $ (11,672) - 46.84% 561 Administrative and Support Svc $ 59,900 $ 68,020 $ (8,120) - 11.94% 532 Rental and Leasing Services $ 165,382 $ 171,394 $ (6,013) - 3.51% * 451 Sporting Goods, Hobby, Books $ 259,161 $ 264,648 $ (5,487) - 2.07% 926 Economic Programs Admin $ 21,315 $ 25,818 $ (4,503) - 17.44% 332 Fabricated Metal Product Manuf $ 11,663 $ 16,096 $ (4,433) - 27.54% * Mitigated NAICS Code W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 31 INFORMATIONAL MEMO Page 5 The next two pages show graphs of sales tax receipts the City collected from major industries between 2010 through the current year. These categories include retail, services, wholesale, construction, and other consisting of manufacturing, automotive, and miscellaneous. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Retail Q1 Q2 Q3 Q4 $1,200,000 $1,000,000 $800,000 $ 600,000 $400,000 $ 200,000 $- Services Q1 Q2 03 Q4 • 2010 • 2011 2012 • 2013 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx • 2010 • 2011 2012 • 2013 33 34 INFORMATIONAL MEMO Page 6 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Wholesale Q1 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Q2 03 Construction Q4 • 2010 • 2011 • 2012 • 2013 01 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 35 INFORMATIONAL MEMO Page 7 Other -Mfg., Automotive, & Misc. $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 01 02 Q3 Q4 • 2010 • 2011 h- 2012 • 2013 Revenue received from mitigation has been consistent with a slight decline in 2013. $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Sales Tax /Mitigation Collection 1 • Mitigation • Sales Tax W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 37 1I]] 1]]] 1J11 11 01 Q2 Q3 Q4 2010 Q1 Q2 Q3 Q4 2011 01 Q2 Q3 Q4 2012 01 Q2 Q3 2013 04 • Mitigation • Sales Tax W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 37 INFORMATIONAL MEMO Page 8 Below is Schedule IV which shows quarterly gambling tax earned for last year, and the current year to date. Schedule IV - Gambling Tax (a) (c) 2013 Sales 2012 2013 Prorated Quarter Actual Actual Budget INCREASE (DECREASE) 2013 to 2012 Actuals 2013 Actuals to 2013 Budget Amount % Amount Q1 $ 465,494 $ 557,272 $ 509,569 Q2 495,196 630,650 509,569 Totals $ 960,690 $ 1,187,922 $ 1,019,138 $ 91,778 135,454 $ 227,232 19.72% $ 47,703 27.35% 121,081 23.65% $ 168,784 9.36% 23.76% 16.56% Compared to 2012 second quarter, the City has collected approximately 27% more in gambling receipts primarily due to increasing gambling receipts. Schedule V shows monthly admission tax receipts for the prior year and current year to date. Schedule V - Admissions Tax (b) (c) 2013 Sales 2012 2013 Prorated Quarter Actual Actual Budget Q1 $ 122,478 $ 111,254 $ 137,500 Q2 135,241 158,397 146,750 Totals $ 257,719 $ 269,651 $ 284,250 INCREASE (DECREASE) 2013 to 2012 Actuals 2013 Actuals to 2013 Budget Amount % Amount $ (11,224) 23,156 $ 11,932 -9.16% $ (26,246) 17.12% 11,647 4.63% $ (14,599) - 19.09% 7.94% -5.14% Admission tax receipts are 8% above budget for second quarter, and about 17% above prior year actual receipts. One establishment is paying delinquent taxes and has paid $33,000 to date. (a) (b) (c) Gambling tax currently includes card games, punch boards, pull tabs, and amusement games. Excludes golf course admissions tax. Actuals reflected in Schedules IV and V are amounts earned in second quarter 2013. These differ from amounts reported in the 2nd Qtr Financial Report, which reflect amounts received in second quarter. Attachments • Sales Tax Summary W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q2SEPT2013.docx 39 SALES TAX SUMMARY �F 2nd Quarter 2013 (Received in March 2013 - Aug 2013) NAICS CONSTRUCTION 12 TOTAL 236 Construction of Buildings 539,907 237 Heavy & Civil Construction 61,598 238 Specialty Trade Contractors 359,935 TOTAL CONSTRUCTION $ 961,440 $ Overall Construction Change from Previous Year 12 YTD 196,884 20,748 166,169 383,800 $ YTD 13YTD %Diff 107.4% 9.1 % -10.6% 408,390 22,628 148,494 579,512 $195,711 NAICS AUTOMOTIVE 12 TOTAL 12YTD 13 YTD YTD % Diff 51,0% 441* Motor Vehicle & Parts Dealer 621,635 447* Gasoline Stations NAICS TOTAL AUTOMOTIVE 301,943 287,852 -4.7% 68,570 32,689 $ 690,204 $ Overall Automotive Change from Previous Year RETAIL TRADE 12 TOTAL 334,631 12YTD 34,330 322,182 ($12,450) 13 YTD 5.0% -3.7% % Diff YTD MANUFACTURING 11 TOTAL 11 YTD 12 YTD % Diff 442* Furniture & Home Furnishings 390,277 180,885 190,305 5.2% 443* Electronics & Appliances 1,146,203 581,371 444,683 -23.5% 311 Food Manufacturing 5,093 1,902 5,188 172.8% 312 Beverage & Tobacco Products 1,302 -1,511 2,761 - 282.8% 313 Textile Mills 473 77 290 274.9% 314 Textile Product Mills 11,796 5,936 4,974 - 16.2% 315 Apparel Manufacturing 458 320 334 42% 316 Leather & Allied Products 0 0 2 #DIV /0! 444* Building Material & Garden 516,862 243,984 278,423 14.1% 445* Food & Beverage Stores 157,235 59,692 98,106 64.4% 446* Health & Personal Care 195,547 90,223 101,536 12.5% 448* Clothing & Accessories 2,089,897 930,020 934,443 0.5% 451* Sporting Goods, Hobby, Books 588,019 264,648 259,161 -2.1% 452* General Merchandise Stores 2,000,865 865,534 963,686 11.3% 321* Wood Product Manufacturing 2,678 922 974 5.7% 453* Miscellaneous Store Retailers 599,192 273,378 322,763 18.1% 322* Paper Manufacturing 23,817 12,225 12,277 0.4% 454* Nonstore Retailers 163,934 73,877 77,097 4.4% 323* Printing & Related Support 33,732 16,070 14,759 -8.2% TOTAL RETAIL TRADE $ 7,848,030 $ 3,563,612 $ 3,670,204 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 5 5,997 1,627 3 3,134 483 10 3,068 2,584 226.3% -2.1 435.2% 327* Nonmetallic Mineral Products 5,388 2,879 1,913 -33.6% 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 139 19,444 2,802 102 16,096 1,158 252 11,663 2,664 148.0% -27.5% 130.0% 334* Computer & Electronic Products 18,241 10,106 4,806 -52.4% 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 1,141 264,570 337* Furniture & Related Products 339* Miscellaneous Manufacturing 256 120,336 409 118,335 59.6% -1.7% 9,119 5,092 4,459 -12.4% 13,701 6,393 TOTAL MANUFACTURING $ 421,524 $ Overall Manufacturing Change from Previous Year TRANSPORTATION & WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers & Messengers 12 TOTAL 5 2,818 5,528 1,264 1,136 35,239 227 254 201,980 12 YTD 5 2,332 994 924 799 17,486 0 156 6,346 -0.7% 198,069 ($3,911) 13YTD 0 1,581 2,167 218 425 18,787 229 155 -1.9% YTD % Diff 0,0% -32.2% 117.9% -76.4% 0,0% 7.4% 0.0% -1.0% 493* Warehousing & Storage 983 467 451 -3.5% TOTAL TRANSP & WHSING $ 47,454 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 12 TOTAL 23,165 $ 12 YTD 24,013 $848 13YTD 3.7% YTD % Diff 423* Whls Trade - Durable Goods 945,497 472,780 424* Whls Trade - Nondurable Goods 131,084 63,324 425* Wholesale Electronic Markets 3,105 1,562 446,388 -5.6% 60,733 -4.1% 1,667 6.7% WHOLESALE TRADE TOTAL $ 1,079,686 $ Overall Wholesale Change from Previous Year * Sales Tax Mitigation NAICS Codes 9/10/2013 537,666 $ 508,787 ($28,879) -5.4% Overall General Retail Change from Previous Year SERVICES 51X Information 52X Finance & Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 71X Arts & Entertainment 12 TOTAL 511,718 88,697 448,360 251,831 937 145,227 60,357 81,829 135,779 12YTD 256,339 38,475 192,612 94,966 936 71,416 30,678 40,949 65,080 $106,592 3.0% YTD 13 YTD % Diff 14.3% 22.6% -1.0% 33.6% -96.9% 55.2% 5.2% 15.4% -0.4% 292,940 47,172 190,720 126,916 29 110,829 32,269 47,236 64.811 72X* Accommodation & Food Svcs 1,958,861 952,503 974,242 2.3% 81X Other Services 92X Public Administration TOTAL SERVICES 201,648 52,206 $ 3,937,451 $ Overall Services Change from Previous Year MISCELLANEOUS 12 TOTAL 000 Unknown 0 111 -115 Agriculture, Forestry, Fishing 330 211 -221 Mining & Utilities 1,850 999 Unclassifiable Establishments 54,529 MISCELLANEOUS TOTAL $ 56,709 $ Overall Miscellaneous Change from Previous Year 12 TOTAL 99,781 29,949 1,873,684 12 YTD 0 91 1,068 20,829 21,988 12YTD GRAND TOTALS $15,042,499 $6,940,526 105,418 5.6% 33,508 11.9% 2,026,089 $152,405 13 YTD 0 90 278 143,526 143,893 $121,905 13 YTD $7,472,749 8. 1% YTD % Diff #DIV /0! -1.1 % -74.0% 589.1% 554.4% YTD % Diff Grand Total Change from Previous Year Grand Total Change from Previous Year- Without New Construction $532,223 $336,512 TUK Sales Tax Rpt Q2- 20135ept.xl5x 7.67% 5.13%