The URL can be used to link to this page

Home My WebLink AboutFS 2013-06-18 Item 2A - Report - 2013 1st Quarter Sales Tax and Miscellaneous 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: June 11, 2013 SUBJECT: Sales Tax and Miscellaneous Revenue Report — 1st Quarter 2013 Schedule I - Retail Sales Tax in 1.000's 2012 2013 Variance -- Month -- Collected Recd New Other I Total Construction Industries I New I Other Total Construction I Industries New Construction I Other Industries I Total Amount % I Amount Jan Feb Mar Mar Apr May $ 85 I $ 944 1 $ 1,029 63 I 1,036 I 1,099 48 ; 1,174 : 1,222 76 1 $ 1,038 $ 1,114 77 1,127 1,204 86 ; 1,191 , 1,277 (9) 14 38 Amount % 94 10 %1 $ 85 91 9 %I 105 17 1 %; 55 8% 10% 5% Tota 154' I' 39'`x1- 3,35 BUDGETED ANNUAL SALES TAX REVENUE 14,629 % BUDGET 25% Total sales tax collections for the first quarter were $245K above the same quarter in the previous year. New construction sales tax collection for first quarter was 43K higher compared to the same quarter in the previous year resulting in 22% increase. Contributing to this increase are existing tenant improvements that are ongoing. As of March 315t, the City has collected $275,856 in sales tax mitigation, which is 24% of the annual mitigation budget. 1 INFORMATIONAL MEMO Page 2 Below is a graph of businesses by type of industry showing overall change from first quarter 2012 revenue receipts to first quarter 2013. 25.0% 20.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% • f- -20.0% .. -25.0% _$43;35ff Construction % Change YTD by Category* $43,296 Retail Trade $48,879 Services $(2,946) Whist Trade $(8,523) Manufacturing $(12,717) Automotive $(2,341) .............. ............................... Transp /Whsng `Graph excludes miscellaneous category, which includes $135,574 in YTD change The miscellaneous category include activities from unclassifiable establishments. Additional explanation causing the large variance is explained in the next section. W:\FIN Projects\Sales Tax Information1201311nfo Memo Sales Tax- Q1- JUNE2013.docx 2 INFORMATIONAL MEMO Page 3 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Non - classifiable establishments had the highest year over year increase at $136,224 followed by Construction of Buildings with an increase of $60,891 or 60 %, primarily due to tenant improvement work. Trust type organizations that are not assigned a specific NAICS code are also reported as nonclassifiable establishments. These trusts have generated $137,000 in sales tax receipts in the first quarter. Schedule II Group Name YTD Current YTD Prior Dollar Diff. Diff. * 452 General Merchandise Stores * 448 Clothing and Accessories * 722 Food Services, Drinking Places * 443 Electronics and Appliances * 423 Wholesale Trade, Durable Goods * 453 Miscellaneous Store Retailers 236 Construction of Buildings 999 Nonclassifiable Establishments * 441 Motor Vehicle and Parts Dealer * 451 Sporting Goods, Hobby, Books * Mitigated NAICS Code $ 466,670 $ 447,896 $ 358,380 $ 219,582 $ 211,486 $ 165,322 $ 162,910 $ 144,238 $ 140,120 $ 128,975 $ 415,038 $ 434,693 $ 358,354 $ 312,511 $ 213,087 $ 136,755 $ 102,019 $ 8,015 $ 153,610 $ 129,319 $ 51,632 12.44% $ 13,203 3.04% $ 26 0.01% $ (92,929) - 29.74% $ (1,602) - 0.75% $ 28,568 20.89% $ 60,891 59.69% $ 136,224 1699.68% $ (13,490) - 8,78% $ (344) - 0.27% Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Gross sales from two large electronic retailers in the City are 52% lower compared to the previous year. Schedule Ill Group Name YTD Current YTD Prior * 443 Electronics and Appliances 238 Specialty Trade Contractors * 441 Motor Vehicle and Parts Dealer 518 Internet Service Providers 541 Professional, Scientific, Tech 332 Fabricated Metal Product Manuf 561 Administrative and Support Svc * 334 Computer and Electronic Produc 721 Accommodation 926 Economic Programs Admin * Mitigated NAICS Code $ 219,582 $ 68,059 $ 140,120 $ 5,273 $ 36,234 $ 5,795 $ 28,451 $ 1,156 $ 102,548 $ 8,934.72 W: \FIN Proiects\Sales Tax Information \2013\Info Memo Sales Tax- Q1- JUNE2013.docx $ 312,511 $ 84,429 $ 153,610 $ 14,682 $ 44,215 $ 13,391 $ 33,557 $ 5,594 $ 106,464 $ 12,027.29 Dollar Diff. Diff. $ (92,929) - 29.74% $ (16,371) - 19.39% $ (13,490) -8.78% $ (9,409) - 64.09% $ (7,981) - 18.05% $ (7,595) - 56.72% $ (5,106) - 15.21% $ (4,438) - 79.34% $ (3,916) -3.68% $ (3,093) -25.71% 3 INFORMATIONAL MEMO Page 4 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 $ 91,778 19.72% $ 47,703 9.36% All existing establishments remitted their gambling taxes in full for first quarter. Compared to 2012 first quarter, the City has collected approximately 20% 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 INCREASE (DECREASE) 2013 to 2012 Actuals 2013 Actuals to 2013 Budget Amount % Amount Jan $ 34,787 $ 38,391 $ 45,833 Feb 38,212 32,962 45,833 Mar 49,479 39,901 45,834 Q1 Totals $ 122,478 $ 111,254 $ 137,500 $ 3,604 (5,250) (9,578) $ (11,224) 10.36% $ (7,442) - 13.74% (12,871) - 19.36% (5,933) -9.16% $ (26,246) - 16.24% - 28.08% - 12.95% - 19.09% Admission tax receipts are currently 19% below budget for the year, and about 9% below prior year actual receipts. One establishment has not paid taxes on January sales. (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 first quarter 2013. These differ from amounts reported in the 1st Qtr Financial Report, which reflect amounts received in first quarter. Attachments • Sales Tax Summary W:1FIN Projects\Sales Tax Information120131Info Memo Sales Tax- Q1- JUNE2013.docx 4 1s Quarfie SALES TAX SUMMARY 2013 (Received in March 2013 - May 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 102,019 9,567 84,429 196,015 $ YTD 162,910 8,406 68,059 239,374 $43,358 YTD % Diff 59.7% -12.1% -19.4% NAICS AUTOMOTIVE 12 TOTAL 12 YTD 1 D YTO % Diff 22.1% 441' Motor Vehicle & Parts Dealer 621,635 153,610 140,120 -8.8% 447* Gasoline Stations 68,570 15,586 16,359 5.0% NAICS TOTAL AUTOMOTIVE $ 690,204 $ Overall Automotive Change from Previous Year RETAIL TRADE 12 TOTAL 169,196 $ 12YTD 156,479 ($12,717) -7.5% 13 YTO % Diff YTD MANUFACTURING 11 TOTAL 11 YTD 12 YTO % Diff 442* Furniture & Home Furnishings 390,277 89,074 95,716 7.5% 443* Electronics & Appliances 1,146,203 312,511 21%5 -29.7% 311 Food Manufacturing 5,093 925 1,494 61.6% 312 Beverage & Tobacco Products 1,302 783 1,402 79.0% 313 Textile Mills 473 31 124 293.9% 314 Textile Product Mills 11,796 3,004 2,754 -8.3% 315 Apparel Manufacturing 458 106 47 -55.9% 316 Leather & Allied Products 0 0 1 #DIV /0! 444* Building Material & Garden 516,862 105,701 118,008 11.6% 445* Food & Beverage Stores 157,235 28,371 47,886 68.8% 446* Heath & Personal Care 195,547 45,923 48,728 6.1% 448* Clothing & Accessories 2,089,897 434,693 447,896 3.0% 451* Sporting Goods, Hobby, Books 588,019 129,319 128,975 -0.3% 452* General Merchandise Stores 2,000,865 415,038 466,670 12.4% 321* Wood Product Manufacturing 2,678 219 482 120.2% 453* Miscellaneous Store Retailers 599,192 136,755 165,322 20.9% 322* Paper Manufacturing 23,817 6,431 6,295 -2.1% 454* Nonstore Retailers 163,934 36,838 38,735 5.2% 323* Printing & Related Support 33,732 8,044 7,386 -8.2% TOTAL RETAIL TRADE $ 7,848,030 $ 1,734,223 $ 1,777,519 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 5 5,997 1,627 2 1,296 191 4 ,307 406 58.8% 0.9% 636.8% 327* Nonmetallic Mineral Products 5,388 1,278 ,196 -6.4% 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 334* Computer & Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337* Fumilure & Related Products 339* Miscellaneous Manufacturing 139 19,444 2,802 41 13,391 791 6 5,795 1,409 -85.8% -56.7% 78.2% 18,241 5,594 1,156 -79.3% 1,141 264,570 9,119 13,701 71 54,108 2,584' 2,686 101,575 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 493' Warehousing & Storage 12 TOTAL 5 2,818 5,528 1,264 1,136 35,239 227 254 207 55,116 190.7% 1.9% 2,497 -3.4% 2,967 10.5% 12 YTO 4 39 466 811 356 9,155 0 '- $r 93,052 ($8,523) -8.4% 13 YTD 0 472 1,194 132 144 6,387 115 62 YTO % Diff 0.0% 1096.4% 156.5% -83.7% 0.0% -30.2% 0.0% 1183.7% Overall General Retail Change from Previous Year SERVICES 983 213 199 -6.3% TOTAL TRANSP & WHSING $ 47,454 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 12 TOTAL 11,049 $ 12 D " 8,707 ($2,341) -21.2% D YTO % Diff 423* Whls Trade - Durable Goods 945,497 213,087 211,486 -0.8% 424* Whls Trade - Nondurable Goods 131,084 28,002 26,493 -5.4% 425* Wholesale Electronic Markets 3,105 732 896 22.5% WHOLESALE TRADE TOTAL $ 1,079,686 $ Overall Wholesale Change from Previous Year Sales Tax Mitigation NAICS Codes 6/11/2013 01 241,821 238,875 ($2,946) -1.2% 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 12 YTO 113,239 18,328 86,857 44,215 2 35,401 16,262 20,384 26,274 $43,296 13 YTO 154,373 25,094 94,275 36,234 0 29,797 16,352 23,025 29,227 2.5% YTO % Diff 36.3% 36.9% 8.5% -18.1% - 100.0% -15.8% 0.6% 13.0% 11.2% 72X* Accommodation & Food Svcs 1,958,861 464,818 460,928 -0.8% 81X Other Services 92X Public Administration TOTAL SERVICES 201,648 52,206 $ 3,937,451 $ Overall Services Change from Previous Year MISCELLANEOUS 12 TOTAL 49,016 12,565 887,362 $ 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 12 YTD 0 67 778 8,015 8,859 $ 12 YTO 52,699 14,236 13.3% 936,241 $48,879., 5.5% 7.5% 3YTD GRAND TOTALS $15,042,499 $3,350,100 YTO % Diff 0 #DIV/0! -35.3% -80.5% 1699.7% 43 151 144,238 144,433 $135,574 1530.3% 13 YTD $3,594,680 YTD % Diff Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction $244,580 7.30% $201,222 6.38% TUK Sales Tax Rpt 41- 2013x1sx