HomeMy WebLinkAboutFS 2008-11-04 Item 2B - Report - August 2008 Sales Tax RevenueTo: Mayor Haggerton
Rhonda Berry
Schedule!
City of Tukwila
6200 Southcenter Boulevard A Tukwila, Washington 98188
From: Shawn Hunstock, Finance Director
Date: October 28, 2008
Subject: Sales Tax Revenue for August 2008
MEMORANDUM
in 1,000's
Sales Receipt 2007 2008 2008 Increase /(Decrease) %Increase /(Decrease)
Month Month Actual Estimated Actual Month YTD Month YTD
Jan Mar 1,324 1,398 1,347 (51) (51) -3 65% -3 64%
Feb Apr 1,350 1,350 1,357 7 (44) 0 52% -1.60%
Mar May 1,707 1,564 1,601 37 (7) 2.37% -0.16%
Apr June 1,482 1,472 1,365 (107) (114) -7.27% -1.97%
May July 1,497 1,497 1,635 138 24 9.22% 0 33%
June Aug 1,768 1,657 1,646 (11) 13 -0.66% 0 15%
July Sept 1,616 1,577 1,535 (42) (29) -2.66% -0.28%
Aug Oct 1,607 1,546 1,555 9 (20) 0 58% -0.17%
Sept Nov 1,704 1,672 0.00% 0.00%
Oct Dec 1,597 1,552 0 00% 0 00%
Nov Jan09 1,652 1,596 0.00% 0.00%
Dec Feb09 2,112 2,164 0.00% 0.00%
Totals 19,416 19,045 12,041
Sales tax collections showed a modest increase of 1 32% in August compared to the
prior month. August is the first full month the city is impacted by sales from the mall
expansion. August is also the second month the city is impacted by streamlined sales
tax. We will not know the full affect of the increased retail sales at the mall until August,
and the impact of streamline sales tax will not be known until December when the city
receives its first mitigation money for lost sales tax revenue.
On a year -to -date basis, actual sales tax revenue is just below budget, and
approximately 2.5% below collections at this time last year. Extrapolating this trend to
the end of the year would result in actual sales tax revenue meeting the budget estimate
of $18.5 million, but below the record collections in the previous year by $849,000.
Sales Tax Revenue Pace 2
Schedule II shows the year -to -date sales tax from the top 10 categories of retail
establishments. As this schedule indicates, there is no clear pattern to explain the
current trend. The variances are both up and down in these categories.
Schedule II
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
452 General Merchandise Stores 1,439,952 1,587,475 (147,523) -9.29%
423 Wholesale Trade, Durable Goods 1,369,127 1,472,459 (103,332) -7.02%
448 Clothing and Accessories 1,320,980 1,051,010 269,970 25.69%
236 Construction of Buildings 964,824 853,304 111,520 13.07%
722 Food Services, Drinking Places 885,199 736,501 148,698 20.19%
443 Electronics and Appliances 708,300 872,140 (163,840) 18.79%
441 Motor Vehicle and Parts Dealer 663,495 674,884 (11,389) -1.69%
453 Miscellaneous Store Retailers 481,299 521,447 (40,148) -7 70%
442 Furniture and Home Furnishings 480,246 711,757 (231,511) 32.53%
444 Building Material and Garden 446,864 547,242 (100,378) -18 34%
As you can see, there are large decreases for those businesses affected most by
streamlined sales tax. Specifically, sales tax for Furniture and Home Furnishings is down
by 32.53 Electronics and Appliances is down by 18.79 and Building Material and
Garden is down by 18.34 These declines are offset by increases in other areas, such
as Clothing and Accessories, which increased by 25.69% and Food Services Drinking
Places, which increased by 20.19 These increases are more than likely the result of
completion of the mall expansion in late July.
Attached is a Sales Tax Summary comparing year -to -date 2008 vs. 2007 by major SIC
codes. Also included is a comparison of total receipts year -to -date for the last four years.
Please let me know if you have any comments or questions. Thank you.
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City of Tukwila
Year -to -date Comparison
2008
2007
2006
2005 $10,548,0241
$10,000,000 $10,500,000
4 -Year Comparison
$11,362,543 1
$11,000,000 $11,500,000
$12,042,282 1
$12,350,941.
Taxes Collected Year to Date
$12,000,000 $12,500,000