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Home My WebLink AboutFS 2014-02-04 Item 2C - Report - 2013 3rd Quarter Miscellaneous Revenue ReportSchedule I - Sales Tax in $1,000's TO: 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: January 27, 2014 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 3rd Quarter 2013 Total sales tax collections for the third quarter were $264K above the same quarter in the previous year. New construction sales tax collection for third quarter was $57K higher compared to the same quarter in the previous year resulting in a 22% increase. Much of this activity include additions /alterations to commercial and industrial buildings. As of September 30th, the City has collected $837,112 in sales tax mitigation, which is 72% of the annual mitigation budget. 15 2012 Actual 2013 Actual YOY Change -- Month - New j Other j Total Construc- j Industries 1 New j Other j Construc7 Industries I Total New Construction j Amount % ■ Other Industries j Amount % I Total Amount Collected Recd Lion Lion Jan Mar $ 85 $ 944 $ 1,029 $ 76 $ 1,038 $ 1,114 $ (9) -11% $ 94 10% $ 85 8% Feb Apr 63 1,036 i 1,099 77 i 1,127 1,204 14 22 %� 91 9 %I 105 10% Mar May 48 : 1,174: 1,222 86: 1,191 : 1,277 38 79 %: 17 1 %: 55 5% Q -1 Totals $ 196 I 3,154 I $ 3,350 $ 239 I 3,356 I $ 3,595 $ 43 22 %I 202 6 %I $ 245 7% Apr Jun 58 1,070 1,128 117 1,109 1,226 59 102% 39 4 %� 98 9% May Jul 58I 1,1281 1,186 1191 1,1651 1,284 61 105 %! 37 3 %I 98 8% Jun Aug 731 1,2041 1,277 1041 1,2641 1,368 32 42 %1 60 5 %I 91 7% Q -2 Totals $ 189 j 3,402 j $ 3,591 $ 340 j 3,538 j $ 3,878 $ 152 80 %j 136 4 %j $ 287 8% Jul Sep 73 j 1,164 j 1,237 101 j 1,300 j 1,401 28 38% 136 12 %j 164 13% Aug Oct 71 1,215 i 1,286 105 1,240 1,345 34 48 %� 25 2 %I 59 5% Sep Nov 113: 1,181: 1,294 108 1 1,227 : 1,335 (4) -4 %: 46 4 %: 41 3% Q -3 Totals $ 257 ; I I 3,560 ; $ 3,817 I $ 314 ; I 3,767 ; $ 4,081 $ 57 1 22 %; 207 6 %; $ 264 7% Oct Dec 106 1,100 I 1,206 I - 1 Nov Jan 92 I 1,230 I 1,322 I I - 1 Dec Feb 1231 1,6341 1,757 I - 1 Q -4 Totals $ 321 j 3,964 1 $ 4,285 $ - - 1 $ - $ - 0 %j - 0 %j $ - 0% Totals $ 963 j 14,080 j $ 15,043 $ 893 j 10,661 j $ 11,554 $ 252 -7 %j 545 -24 %j $ 796 -23% TO: 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: January 27, 2014 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 3rd Quarter 2013 Total sales tax collections for the third quarter were $264K above the same quarter in the previous year. New construction sales tax collection for third quarter was $57K higher compared to the same quarter in the previous year resulting in a 22% increase. Much of this activity include additions /alterations to commercial and industrial buildings. As of September 30th, the City has collected $837,112 in sales tax mitigation, which is 72% of the annual mitigation budget. 15 l6 INFORMATIONAL MEMO Page 2 Sales tax collections through third quarter are 79% of the the annual budget. Projections for the remaining months of the year assumes a 1.74% increase over monthly budget. -- Month -- Collected Rec'd 2012 2013 2014 Actual Budget Actual Variance [Act Over(Under) Bdgt] Amt ok Projection j Budget i Projection I Jan Mar $ 1,029 $ 1,052 $ 1,114 $ 62 6% $ 1,114 $ 1,080 ; $ 1,200 I 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 ! 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 1,1531 1,300 May Jul 1,186 1,148 1,284 136 12% 1,284 1,183 1 1,300 Jun Aug 1,277 1,290 1,368 78 6% 1,368 1,316 j 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 1,401 132 10% 1,401 1,2931 1,370 Aug Oct 1,286 1,212 1,345 133 11% 1,345 1,243 : 1,317 Sep Nov 1,294 1,250 1,335 85 7% 1,335 1,280! 1,356 Q -3 Totals $ 3,817 $ 3,731 $ 4,081 $ 350 9% $ 4,081 $ 3,816 1 4,043 Oct Dec 1,206 1,142 1,162 1,171 j 1,241 Nov Jan 1,322 1,195 1,216 1,231 : 1,304 Dec Feb 1,757 1,668 1,697 1,711 ! 1,813 Q -4 Totals $ 4,285 $ 4,005 $ - $ - $ 4,075 $ 4,113 j 4,357 Totals $ 15,043 $ 14,629 $ 11,554 $ 930 $ 15,629 $ 15,010 16,100 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 17 18 INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change through third quarter 2013. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 s- $(50,000) Change YTD by Category* $253,007 Construction Retail $219,036 Trade, Services, $218,613 Miscellaneous, $127,717 Transportation /Warehousing, $2,485 ■ Automotive, $(7,406) Manufacturing, $(4,552) WholesaleTrade, $(12,554) 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. The State uses this code to distribute local sales tax when they are unable to identify the correct location code. The funds are distributed to jurisdictions based on their percentage of total distribution and are reported in Group 999. W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 19 INFORMATIONAL MEMO Page 4 Schedule 11 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 $225,641 followed by General Merchandise Stores. Permitting activity for new commercial and industrial additions /alterations show a 16% increase year to date. Permits issued to date for new single family dwellings more than doubled. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 1,530,329 $ 1,394,546 $ 135,783 9.74% * 448 Clothing and Accessories $ 1,470,783 $ 1,472,702 $ (1,919) -0.13% * 722 Food Services, Drinking Places $ 1,128,380 $ 1,097,690 $ 30,689 2.80% * 423 Wholesale Trade, Durable Goods $ 709,431 $ 723,272 $ (13,841) -1.91% * 443 Electronics and Appliances $ 696,675 $ 813,842 $ (117,167) - 14.40% 236 Construction of Buildings $ 559,582 $ 333,941 $ 225,641 67.57% * 453 Miscellaneous Store Retailers $ 494,682 $ 417,022 $ 77,660 18.62% * 441 Motor Vehicle and Parts Dealer $ 444,356 $ 457,607 $ (13,251) -2.90% * 444 Building Material and Garden $ 432,353 $ 392,498 $ 39,855 10.15% 721 Accommodation $ 403,737 $ 378,707 $ 25,030 6.61% * Mitigated NAICS Code Schedule 111 shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Several businesses in the electronics and appliances category have little to no activity in 2013. Two of the establishments in this category closed; one in December 2012 and one in July 2013. Schedule III YTD YTD Dollar % Group Name Current Prior Diff. Diff. * 443 Electronics and Appliances $ 696,675 $ 813,842 $ (117,167) - 14.40% 238 Specialty Trade Contractors $ 228,679 $ 265,919 $ (37,239) - 14.00% 532 Rental and Leasing Services $ 266,148 $ 293,128 $ (26,980) -9.20% * 423 Wholesale Trade, Durable Goods $ 709,431 $ 723,272 $ (13,841) -1.91% * 441 Motor Vehicle and Parts Dealer $ 444,356 $ 457,607 $ (13,251) -2.90% * 451 Sporting Goods, Hobby, Books $ 400,921 $ 412,750 $ (11,829) -2.87% 561 Administrative and Support Svc $ 91,206 $ 102,559 $ (11,352) - 11.07% 336 Transportation Equipment Man $ 178,791 $ 186,838 $ (8,046) -4.31% * 323 Printing and Related Support $ 21,841 $ 24,335 $ (2,494) - 10.25% * 448 Clothing and Accessories $ 1,470,783 $ 1,472,702 $ (1,919) -0.13% * Mitigated NAICS Code W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 21 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, transportation & warehousing, automotive, and miscellaneous. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Retail Q1 Q2 Q3 Q4 • 2010 • 2011 2012 • 2013 $1,200,000 $1,000,000 $800,000 $ 600,000 $400,000 $ 200,000 $- Services 01 Q2 03 Q4 • 2010 • 2011 2012 • 2013 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 23 24 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 Q3 Construction Q4 • 2010 • 2011 • 2012 • 2013 _ , • • • • • • • • • • • 01 02 Q3 Q4 • 2010 • 2011 • 2012 • 2013 W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 25 INFORMATIONAL MEMO Page 7 Other -Mfg. Trnsp /Wrhsng, 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 • 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 • Mitigation • Sales Tax W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 27 1]]] 1]]] 1J11 1]] 01 Q2 Q3 Q4 2010 Q1 Q2 Q3 Q4 2011 01 Q2 Q3 Q4 2012 01 Q2 03 Q4 2013 • Mitigation • Sales Tax W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 27 INFORMATIONAL MEMO Page 8 Below is Schedule IV which shows quarterly gambling tax earned for the prior year, and the current year to date. Schedule IV - Gambling Tax (a) (c) 2013 Quarter 2012 2013 Prorated Earned 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 Q3 454,973 522,196 509,568 Q4 508,515 509,568 Totals $ 1,924,178 $ 1,710,118 $ 2,038,274 $ 91,778 135,454 67,223 $ 294,455 19.72% $ 47,703 27.35% 121,081 14.78% 12,628 0.00% - 11.12% $ 181,412 9.36% 23.76% 2.48% 0.00% - 16.10% Compared to 2012 third quarter, the City has collected approximately 15% more in 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 Quarter 2012 2013 Prorated Earned Actual Actual Budget Q1 $ 122,478 $ 111,254 $ 137,500 Q2 135,241 158,396 137,500 Q3 127,694 154,463 137,500 Q4 142,715 - 137,500 Totals $ 528,128 $ 424,113 $ 550,000 INCREASE (DECREASE) 2013 to 2012 Actuals 2013 Actuals to 2013 Budget Amount % Amount $ (11,224) -9.16% $ (26,246) 23,155 17.12% 20,896 26,769 20.96% 16,963 0.00% $ 38,700 - 19.70% $ 11,613 - 19.09% 15.20% 12.34% 0.00% - 22.89% Admission tax receipts are 12% above budget for third quarter, and about 21% above prior year actual receipts. One establishment has paid $50,000 to date in delinquent taxes and is now current. (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 third quarter 2013. These differ from amounts reported in the 3rd Qtr Financial Report, which reflect amounts received in third quarter. Attachments • Sales Tax Summary W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q3DEC2013.docx 29 O r � M SALES TAX SUMMARY co N o I L Q) E Q) O ) O N U L Cis 1 Cb U r O N a) a M 0 0 N AUTOMOTIVE 441* Motor Vehicle & Parts Dealer e NE 0 . R >- O h w N N H MO 0 a 5 w m U 5 E Q w o 0Q K > w O 0 O a a 0 0 0 1- CONSTRUCTION m Q m rn aD m M N O M M O Q ci 4 co N mr t0 Q 8 w 4 O 0 RE M ! v o r M yMj A 3 I- MANUFACTURING W 0 on M O N rn la 0 m 0 lOL 4 LO W 0) t6 11 x CO W CO C 0 U 4 m 0) CO ui N 2n E. O N O 0)) GO 0)) N r v m r 10 o CD O O 00 g R M M0,47). M 0 O M r v � � r M M M M M M s Store Retailers 9- Nonstore Retailers 9- O o N w r O MM 0-, .W cv J O N > O A 0 O a` 5 m m w U m 14 0 w O U w 0 www 1- a W w a O m u7 W Wood Product Ma CO N oo 00 N co V N M r M O V r M 0) 0) ccc r )O . M O N O V 0 ,0.00,..,-m 0 r N M O 0) r N M mr OV O O ¢ M y-0400,0.0, N u5 M V M V �[OJ C0' u-i ui ci m r co O C. O M M W r M M M N -G00) 9 W X N M.1 t0 U. 0 .- N X to 0 O 47 f r o m M r � 01 00 OD 01 C, rn W 004,122 4-047, - W N v o w d' aD 06 N M M M M M M 05 M M 4- M V CO CO 10 y, M M O 4 O ccsa GO 2 E ii 66 M 2 8 co O CO m Accommodation & Food Svcs CON 00 M V NO v °v (0 N N ae O O r o M 0 ,!' aj ww 00 w TOTAL SERVICES - 0 o 40,0 r u� M 4- 0 4) TRANSPORTATION & WAREHOUSING 0 0 0 MISCELLANEOUS i O ? O 0 D) . N O M M N .O M W . C o ae 0 • 0. 0 EC O c) cO o r o cM,) M m, w 00 M N N O )D N CD N M M CO V V O m 111 r N r r N u) ao w v m rn r N . M M N aD LO N 4- N N N N W M CO 00 CO CD CD 00 00 T V' VCO V Y sT Y V 9 rn 2 0 0 V ae a N r d, o M M r P n r cri 12 6 ri VI CO CO 0 tomI N,,,, M M J 1- WHOLESALE TRADE 0 0 O F CV a GRAND TOTALS 423* Whls Trade - Durable Goods CO O 424* Whls Trade - Nondurable Goods a CO 0 Wholesale Electronic Markets W A m m> co O 5 m w O c as U 0 Go m aO 0 0 w w J a Go w O Sales Tax Mitigation NAICS Codes 31