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Home My WebLink AboutFS 2009-07-07 Item 2E - Report - April 2009 Sales Tax RevenueTO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: June 30, 2009 SUBJECT: Sales Tax Revenue for April 2009 Schedule I in 1,000's 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 1,051 (346) (577) 24.77% -20.61% Mar May 1,601 1,654 1,146 (508) (1,085) 30.71% 24.36% Apr June 1,365 1,497 1,191 (306) (1,391) 20.44% 23.37% May July 1,635 1,560 (1,560) (2,951) 100.00% 39.29% June Aug 1,646 1,757 (1,757) (4,708) 100.00% 50.80% July Sept 1,535 1,661 (1,661) (6,369) 100.00% 58.28% Aug Oct 1,555 1,647 (1,647) (8,016) 100.00% 63.74% Sept Nov 1,426 1,685 (1,685) (9,701) 100.00% 68.02% Oct Dec 1,298 1,521 (1,521) (11,222) 100.00% 71.11% Nov Jan 10 1,265 1,589 (1,589) (12,811) 100.00% 73.75% Dec Feb10 1,723 2,175 (2,175) (14,986) 100.00% 76.67% Totals 17,753 19,546 4,560 Mitigation Received 741 5,301 89.08% of Budget Incl. Mitigation Jim Haggerton, Mayor Sales tax collections showed the eighth consecutive decrease in April compared to the same period in the prior year. April historically is one of the slowest months of the year for sales tax collections. For 2009, collections were significantly less than both budget and the same month in the prior year. Actual receipts for April 2009 were $306,000 less than budget, and $174,000 less than the same period last year. We are now down 23.37% for the year compared to budget, and 19.58% compared to the same period last year. It should be noted that both of these percentages represent a modest improvement (smaller decline) than those from March 2009. The chart above also includes the mitigation payment we received at the end of March and June for fourth quarter 2008, and first quarter 2009 respectively. Including the mitigation payment, we are currently just under 89.08% of budget for the year to date. The mitigation payment we received in June was $346,046.24. This was a 12.4% decrease from the $394,987.43 we received for fourth quarter 2008. Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this schedule indicates, the trend is flat or down for all nine of the ten classifications. INFORMATIONAL MEMO Page 2 Schedule II Group Name 452* General Merchandise Stores 448* Clothing and Accessories 423* Wholesale Trade, Durable Goods 722* Food Services, Drinking Places 443* Electronics and Appliances 441 Motor Vehicle and Parts Dealer 236 Construction of Buildings 453* Miscellaneous Store Retailers 451* Sporting Goods, Hobby, Books 444* Building Material and Garden Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Construction of Buildings is down by 55.41 Wholesale Trade and Durable Goods is down by 36.36 and Building Material and Garden is down by 27.76 These declines are offset by very small increases in other areas, such as Clothing and Accessories, which increased by 4.36 and Food Services and Drinking Places, which increased by 1.68 As you can see from Schedule II, eight of the top ten merchant categories have declined versus prior year, and nine of the ten industry classification codes are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected in April. Schedule III Group Name 323* Printing and Related Support 236 Construction of Buildings 442* Furniture and Home Furnishings 518 Internet Service Providers 454* Nonstore Retailers 423* Wholesale Trade, Durable Goods 713 Amusement, Gambling, and Rec 447* Gasoline Stations 621 Ambulatory Health Care Service 336 Transportation Equipment Man Mitigated NAICS Code H (Sales Tax120091Info Memo Sales Tax 063009.doc YTD Current 575,818 569,121 468,320 414,538 306,935 256,954 193,667 178,342 170,380 153,666 YTD Current 21,324 193,667 118,160 19,333 27,169 468,320 17,280 19,127 20,032 50,906 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. YTD Dollar Prior Diff. 69,191 (47,867) 434,367 (240,700) 256,589 (138,429) 32,833 (13,500) 44,118 (16,949) 735,906 (267,585) 26,324 (9,045) 29,031 (9,905) 29,297 (9,265) 72,094 (21,189) Please let me know if you have any comments or questions. Thank you. YTD Dollar Prior Diff. Diff. 662,412 (86,595) 13.07% 545,172 23,949 4.39% 735,906 (267,585) 36.36% 407,699 6,839 1.68% 332,627 (25,692) 7.72% 320,709 (63,755) 19.88% 434,367 (240,700) -55.41% 241,952 (63,610) 26.29% 192,787 (22,408) 11.62% 212,726 (59,060) 27.76% Diff. 69.18% -55.41 53.95% 41.12% 38.42% 36.36% 34.36% 34.12% 31.62% 29.39% 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 08 TOTAL 311 Food Manufacturing 4,997 312 Beverage Tobacco Products 2,328 313 Textile Mills 1,050 314 Textile Product Mills 22,660 315 Apparel Manufacturing 215 316 Leather Allied Products 9 321' Wood Product Manufacturing 9,515 322' Paper Manufacturing 21,545 323' Printing Related Support 143,009 324 Petroleum Coal Products 9,630 325 Chemical Manufacturing 8,068 326 Plastic Rubber Products 4,085 327' Nonmetallic Mineral Products 5,242 331 Primary Metal Manufacturing 52 332 Fabricated Metal Mfg Products 6,310 333 Machinery Manufacturing -8,777 334' Computer Electronic Products 44,162 335 Electric Equipment, Appliances 895 336 Transportation Equipment Mfg 191,525 337' Furniture Related Products 31,384 339* Miscellaneous Manufacturing 22,411 TOTAL MANUFACTURING 520,315 Overall Manufacturing Change from Previous Year TRANSPORTATION WAREHOUSING 08 TOTAL 481 Air Transportation 0 482 Rail Transportation 1,935 484 Truck Transportation 965 485 Transit and Ground Passengers 11,502 488 Transportation Support 28,728 491 Postal Services 88 492 Couders Messengers 476 493' Warehousing Storage 781 TOTAL TRANSP WHSING 44,475 Overall Transportation Change from Previous Year WHOLESALE TRADE 08 TOTAL 423' Wills 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 1 Sales Tax Mitigation NAICS Codes 06/29/2C*J* YTD 08 YTD 09 YTD Diff 434,367 193,667 -55.4% 19,757 15,238 -22.9% 151,582 149,108 -1.6% 605,706 358,013 ($24Z693) -40.9% YTD 08 YTD 09 YTD Diff 1,348 558 -58.6% 521 915 75.6% 37 114 213.1% 9,797 3,542 -63.9% 0 34 #DIV /0! 0 4 #DIV /0! 1,355 1,035 -23.6% 7,429 6,494 -12.6% 69,191 21,324 -69.2% 3,972 1,877 -52.7% 3,115 1,892 -39.3% 1,031 913 -11.4% 1,317 1,017 -22.7% 4 2 -44.7% 929 745 -19.9% -3,238 1,519 146.9% 15,527 8,105 -47.8% 21 39 84.3% 72,094 50,906 -29.4% 14,554 2,765 -81.0% 3,357 4,091 21.9% 202,361 107,890 (894,471) -46.7% I YTD 08 YTD 09 YTD Diff 0 0 0.0% 709 383 -46.0% 40 306 664.9% 3,978 3,252 -18.3% 8,853 7,741 -12.6% 3 0 100.0% 57 27 -53.4% 247 286 15.5% 13,888 11,994 (51,894) -13.6% YTD 08 YTD 09 YTD Dlff 735,906 468,320 -36.4% 22,744 38,737 70.3% 1,669 527 -68.4% 760,319 507,584 (5252,735) -33.2% SALES TAX SUMMARY April 2009 (Received in June) NAICS AUTOMOTIVE 08 TOTAL I 441* Motor Vehicle Parts Dealer 993,146 I 447" Gasoline Stations 73,034 TOTAL AUTOMOTIVE 1,066,181 Overall Automotive Change from Previous Year NAILS I 442' I 443' 1 444' 445' 446' 448' 451' 452' 453* 1 454' 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 72X' Accommodation Food Svcs 81X Other Services 92X 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 Unclassifiable Establishments 35,837 MISCELLANEOUS TOTAL 57,652 Overall Miscellaneous Change from Previous Year Page 1 RETAIL TRADE Furniture Home Furnishings Electronics Appliances Building Material Garden Food Beverage Stores Health Personal Care Clothing Accessories Sporting Goods, Hobby, Books General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers TOTAL RETAIL TRADE SERVICES 08 TOTAL 621,785 1,077,238 619,645 88,317 146,841 2,101,593 644,522 2,231,745 721,034 116,347 8,369,066 Overall General Retail Change from Previous Year 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 ERR 320,709 256,954 -19.9% 29,031 19,127 -34.1% 349,740 276,080 (573, 660) -21.1% 08 YTD 09 YTD Diff 256.589 118,160 -53.9% 332,627 306,935 -7.7% 212,726 153,666 -27.8% 30,235 27,192 -10,1% 37,283 62,209 66.9% 545,172 569,121 4.4% 192,787 170,380 -11.6% 662,412 575,818 -13.1% 241,952 178,342 -26.3% 44,118 27,169 -38.4% 2,555,900 2,188,991 (5366,909) -14.4% YTD 08 YTD 09 YTD Diff 172,927 181,109 4.7% 22,088 12,538 -43.2% 127,433 108,804 -14.6% 90,177 63,752 -29.3% 925 357 -61.3% 43,498 50,854 16.9% 2,319 7,113 206.7% 36,506 27,111 -25.7% 33,888 23,445 -30,8% 574,124 564,998 -1.6% I 62,531 59,032 -5.6% 151 4,948 3168.4% 1,166,566 1,104,061 (562,504) -5.4% YTD 08 YTD 09 YTD Diff 76 397 424.1% 99 71 -28.4% 3,354 3,141 -6.4% 12,580 2,310 -81,6% 16,109 5,919 (510,190) -63.3% YTD 08 YTD 09 YTD Diff $5,670,588 54,560,533 (01,110,055) 19.58% I Ur Sales Ian Rpl 200904 xis 2009 2008 L CD 2007 1 2006 Four Year Comparison $1,000,000 $2,000,000 $3,000,000 $5,862,108 Taxes Collected Year to Date $4,560,544 $5,322,648 $4,000,000 $5,000,000 $6,000,000