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Home My WebLink AboutFS 2009-04-07 Item 2F - Report - January 2009 Sales Tax RevenueTO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: March 27, 2009 SUBJECT: Sales Tax Revenue for January 2009 Schedule I Sales Receipt 2008 2009 2009 Increase /(Decrease) %Increase /(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,347 1,403 1,172 (231) (231) 16.46% 0.00% Feb Apr 1,357 1,397 (1,397) (1,628) 100.00% 58.14% Mar May 1,601 1,654 (1,654) (3,282) 100.00% 73.69% Apr June 1,365 1,497 (1,497) (4,779) 100.00% 80.31% May July 1,635 1,560 (1,560) (6,339) 100.00% 84.40% June Aug 1,646 1,757 (1,757) (8,096) 100.00% 87.35% July Sept 1,535 1,661 (1,661) (9,757) 100.00% 89.28% Aug Oct 1,555 1,647 (1,647) (11,404) 100.00% 90.68% Sept Nov 1,426 1,685 (1,685) (13,089) 100.00% 91.78% Oct Dec 1,298 1,521 (1,521) (14,610) 100.00% 92.57% Nov Jan09 1,265 1,589 (1,589) (16,199) 100.00% 93.25% Dec Feb09 1,723 2,175 (2,175) (18,374) 100.00% 94.00% Totals 17,753 19,546 1,172 Jim Haggerton, Mayor in 1,000's Sales tax collections showed the fifth consecutive decrease in January compared to the same month in the prior year. January is typically one of the lowest months in terms of sales tax collections, but for 2009 the collections were significantly less than both budget and compared to the same month in the prior year. Actual receipts for January 2009 were $231,000 less than budget, and $175,000 less than the same period last year. The amounts above do not include the mitigation payment we will be receiving next week for fourth quarter 2008. The mitigation payment is $394,987.43. This is a significant increase from the $218,797.89 in mitigation we received for third quarter 2009. The fourth quarter payment represents an increase of 80.5% over the third quarter mitigation. I recently received a response from the Department of Revenue concerning the firms we noticed in the third quarter mitigation calculation that should not have been included. All but two of the fifty -eight firms I sent DOR were removed from future calculations, as they should not have been included in the first place. I am still in contact with DOR regarding the other two firms and I hope to have these excluded as well as they represent "gains" which are offsetting losses from other companies, and thereby reducing our mitigation payment. INFORMATIONAL MEMO Page 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 Group 423 452 448 722 236 443 441 453 451 721 Name Wholesale Trade, Durable Goods General Merchandise Stores Clothing and Accessories Food Services, Drinking Places Construction of Buildings Electronics and Appliances Motor Vehicle and Parts Dealer Miscellaneous Store Retailers Sporting Goods, Hobby, Books Accommodation Although we are only looking at one month so far, as you can see there are large variances from last year for the same time period. For instance, sales tax for Miscellaneous Store Retailers is down by 20.88 Construction of Buildings is down by 17.33 and Wholesale Trade and Durable Goods is down by 14.37 These declines are offset by increases in other areas, such as Food Services and Drinking Places, which increased by 8.14 and Accommodations, which increased by 5.59 As you can see from Schedule II, six of the top ten merchant categories have declined versus prior year. Attached is a Sales Tax Summary comparing year -to -date 2009 vs. 2008 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. U: Sales Tax120091Info Memo Sales Tax 032709.doc YTD Current 156,793 136,403 122,233 102,459 83,683 78,402 72,948 48,794 43,963 39,891 YTD Dollar Prior Diff. Diff. 183,098 (26,305) 14.37% 150,247 (13,844) -9.21% 117,317 4,916 4.19% 94,748 7,710 8.14% 101,231 (17,548) 17.33% 82,437 (4,035) -4.89% 70,586 2,362 3.35% 61,671 (12,878) 20.88% 46,371 (2,408) -5.19% 37,779 2,112 5.59% NAICS CONSTRUCTION 08 TOTAL 236 Construction of Buildings 1,302,567 237 Heavy Civil Construction 130,624 238 Specialty Trade Contractors 530.490 TOTAL CONSTRUCTION 1,963,680 Overall Construction Change from Previous Year MANUFACTURING 311 Food Manufacturing 312 Beverage Tobacco Products 313 Textile Mills 314 Textile Product Mills 315 Apparel Manufacturing 316 Leather& Allied Products 321 Wood Product Manufacturing 322 Paper Manufacturing 323 Printing Related Support 324 Petroleum Coal Products 325 Chemical Manufacturing 326 Plastic Rubber Products 327 Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabr"cated Metal Mfg Products 333 Machinery Manufacturing 334 Computer Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337 Furniture Related Products 339 Miscellaneous Manufacturing TOTAL MANUFACTURING TRANSPORTATION WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 488 Transportation Support 491 Postal Services 492 Couriers Messengers 493 Warehousing Storage TOTAL TRANSP WHSING 9,515 21,545 143,009 9,630 8,068 4,085 5,242 52 6,310 -8,777 44,162 895 191,525 31,384 22.411 520,315 Overall Manufacturing Change from Previous Year WHOLESALE TRADE 08 TOTAL 423 Whls Trade Durable Goods 1,777,808 424 Whls Trade Nondurable Goods 113,096 425 Wholesale Electronic Markets 2,805 WHOLESALE TRADE TOTAL 1,893,709 Overall Wholesale Change from Previous Year o3rvn_oa9 08 TOTAL 0 1,935 965 11,502 28,728 88 476 781 44,475 Overall Transportation Change from Previous Year YTD 08 YTD 09 YTD %Diff 101,231 83,683 -17.3% 929 1,124 20.9% 27,341 30,959 13.2% 129,501 115,765 ($13,736) YTD 08 TOTAL 08 YTD 09 YTD Diff 4,997 397 354 -10.9% 2,328 172 161 -6.2% 1,050 2 2 -21.8% 22,660 1,848 502 -72.8% 215 0 30 0.0% 9 0 0 #DIV /0! 130 619 375.2% 1,691 1,661 -1.8% 18,955 6,137 -67.6% 772 510 -33.9% 556 354 -36.4% 59 137 132.0% 471 418 -11.2% 0 0 #DIV /0! 80 80 -0.1% 456 271 -40.6% 3,527 47 -98.7% 0 13 #DIV /0! 16,695 10,248 -38.6% 2,688 551 -79.5% 425 1.147 169.5% 48,924 23,241 ($25,682) YTD 08 YTD 09 YTD Diff 0 0 0.0% 216 134 -37.8% 0 129 #DIV /0! 582 557 -4.3% 2,465 1,873 -24.0% 0 0 0.0% 4 20 347.5% 55 70 0.0% 3,322 2,783 ($539) YTD 08 YTD 09 YTD Diff 183,098 156,793 -14.4% 5,415 9,568 76.7% 417 165 -60.5% 168,931 166,526 ($22,405) SALES TAX SUMMARY January 2009 (Received in March) -10.6% -11.9% NAICS AUTOMOTIVE 441 Motor Vehicle Parts Dealer 447 Gasoline Stations TOTAL AUTOMOTIVE 08 TOTAL 993,146 73.034 1,066,181 Overall Automotive Change from Previous Year NAICS RETAIL TRADE 08 TOTAL 442 Furniture Home Furnishings 621,785 443 Electronics Appliances 1,077,238 444 Building Material Garden 619,645 445 Food Beverage Stores 88,317 446 Health Personal Care 146,841 448 Clothing Accessories 2,101,593 451 Sporting Goods, Hobby, Books 644,522 452 General Merchandise Stores 2,231,745 453 Miscellaneous Store Retailers 721,034 454 Nonstore Retailers 116,347 TOTAL RETAIL TRADE 8,369,066 Overall General Retail Change from Previous Year 51' Information 52' Finance Insurance 53' Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56' Admin, Supp, Remed Svcs 611 Educational Services 62' Health Care Social Assistance 71' Arts Entertainment -52.5% 72' Accommodation Food Svcs 81' Other Services 92' Public Administration TOTAL SERVICES MISCELLANEOUS 08 TOTAL 000 Unknown 1,147 111 -115 Agriculture, Forestry, Fishing 1,095 211 -221 Mining Utilities 19,574 999 Unclassif able Establishments 35,837 -16.2% MISCELLANEOUS TOTAL 57,652 Overall Miscellaneous Change from Previous Year Page 1 SERVICES 08 TOTAL 570,706 75,585 403,851 338,302 1,902 167,119 12,727 109,308 106,515 1,858,292 192,450 843 3,837,599 Overall Services Change from Previous Year 08 TOTAL GRAND TOTALS $17,752,678 Grand Total Change from Previous Year YTD 08 YTD 09 YTD Diff 70,586 72,948 3.3% 15,583 4,542 -70.9% 86,170 77,490 ($8,680) -10.1% 08 YTD 09 YTD Diff 67,450 30,630 -54.6% 82,437 78,402 -4.9 52,982 34,636 -34.6% 6,423 6,107 -4.9% 18,572 11,200 -39.7% 117,317 122,233 4.2% 46,371 43,963 -5.2% 150,247 136,403 -9.2% 61,671 48,794 -20.9% 7,173 6,408 -10.7% 610,642 518,776 ($91,866) -15.0% YTD 08 YTD 09 YTD Diff 40,217 34,933 -13.1% 6,133 2,267 -63.0% 29,122 27,649 -5.1% 19,032 16,343 -14.1% 272 14 -95.0% 12,610 15,876 25.9% 501 1,431 185.3% 9,781 9,299 -4.9% 7,011 -556 107.9% 132,527 142,349 7.4% 15,154 14,214 -6.2% 0 321 #DIV /0! 272,361 264,140 ($8,221) -3.0% YTD 08 YTD 09 YTD Diff 0 397 #DIV /O! 91 0 100.0% 333 524 57 4% 6,977 2,446 -64.9% 7,400 3,367 ($4,033) -54.5% 08 YTD $1,347,251 YTD 09 YTD Diff $1,172,088 ($175,162) 13.00% run Soles Tax Rpl 200901.xls 2009 as" 2008I 2007 I 2006 s_ Four Year Comparison i 1 i I $1,172,089 1 I $1,347,251 I $500,000 $1,323,923 $1,239,424 Taxes Collected Year to Date $1,000,000 $1,500,000