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HomeMy WebLinkAboutFS 2009-08-18 Item 2B - Report - May 2009 Sales Tax RevenueTO: Mitigation Received City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: July 29, 2009 SUBJECT: Sales Tax Revenue for May 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 1,082 (478) (1,869) -30 64% -24 88% June Aug 1,646 1,757 (1,757) (3,626) -100 00% -39 12% July Sept 1,535 1,661 (1,661) (5,287) -100 00% -48 38% Aug Oct 1,555 1,647 (1,647) (6,934) -100 00% 55.14% Sept Nov 1,426 1,685 (1,685) (8,619) -100 00% 60.44% Oct Dec 1,298 1,521 (1,521) (10,140) -100 00% 64.25% Nov Jan10 1,265 1,589 (1,589) (11,729) -100 00% -67 52% Dec Feb10 1,723 2,175 (2,175) (13,904) -100 00% -71 13% Totals 17,753 19,546 5,642 741 6,383 84.98% of Budget Ind Mitigation Jim Haggerton, Mayor Sales tax collections showed the ninth consecutive decrease in May compared to the same period in the prior year. May is historically one of the highest 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 May 2009 were $478,000 less than budget, and $553,000 Tess than the same period last year. We are now down 24.88% for the year compared to budget, and 22.77% compared to the same period last year. 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 85% 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 of the classifications. INFORMATIONAL MEMO Page 2 Schedule II Group 452* 448* 423* 722* 443* 441* 236 453* 451 444* 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 51.37 Wholesale Trade and Durable Goods is down by 47.21%, and Building Material and Miscellaneous Store Retailers is down by 2T12% These declines are offset by very small increases in other areas, such as Clothing and Accessories, which increased by 2 52 and Food Services and Drinking Places, which increased by 1.58 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 through May. Schedule III Name General Merchandise Stores Clothing and Accessories Wholesale Trade, Durable Goods Food Services, Drinking Places Electronics and Appliances Motor Vehicle and Parts Dealer Construction of Buildings Miscellaneous Store Retailers Sporting Goods, Hobby, Books Building Material and Garden Group Name 323* Printing and Related Support 237 Heavy and Civil Construction 442* Furniture and Home Furnishings 236 Construction of Buildings 423* Wholesale Trade, Durable Goods 454* Nonstore Retailers 447* Gasoline Stations 621 Ambulatory Health Care Service 541 Professional, Scientific, Tech 518 Internet Service Providers Mitigated NAICS Code H:\Sales Tax\2009 \Info Memo Sales Tax 072909.doc YTD Current 723,908 716,788 528,242 519,781 368,163 313,883 277,318 216,785 214,663 201,500 YTD Current 25,934 21,086 144,280 277,318 528,242 32,890 24,307 24,808 73,119 23,287 YTD Prior 836,316 699,137 1,000,621 511,713 425,134 408,161 570,299 297,471 243,229 274,682 Dollar Diff. (112,407) 17,651 (472,379) 8,068 (56,971) (94,278) (292,981) (80,686) (28,565) (73,182) YTD Dollar Prior Diff. 85,476 (59,541) 57,943 (36,857) 334,610 (190,330) 570,299 (292,981) 1,000,621 (472,379) 49,580 (16,690) 34,631 (10,324) 35,050 (10,242) 103,087 (29,967) 36,437 (13,150) 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 °/0 Diff. 13.44% 2.52% 47 21% 1 58% -13 40% -23 10% 51 37% -27 12% 11 74% -26 64% °/0 D iff. 69.66% 63.61% -56 88% 51.37% -47.21% 33.66% -29 81% 29.22% 29 07% -36 09% D rn p 07 0 o 0 o �I� p o m m m M co to o 0 co co o on 03 aq 0 LO 0 0 A p L e r a cv I 0 c a o� °m m° a p Oi I M 04 ml tG .0 e Z 0 O N o p p y e y N Y e r- Y e c r m m N m T Vi n m m m L V Co_ r- o m ra d a g a c 0 o a a E o W. c m e. U N C rt, 0 U O. Q F C Z 3 a N L Q 0 If'. N 4 W m (:J y r n, d W U O W c r4:2' r l 0 CL Qo. H O n af� o h v E V E m qw g 7 0 X 0 0 o Q m o c p 1 i i en- o Q u� c Q H 1 J I .7-'3 r m d Q o r c o. d .c s z t in 0 en 2 m a as C7 °o' o ra :it' E y d o g c J m as °d g, c w_ (n o U E Q 3 n w U N U ti W m u m U,co CD 2E Z O r 1 K d U Q W S Q Q O d r Q E U r U y N ml:- X X X X-- N X N X X o Z v c c e v °v v e v 0 .n .n •n .n u> 0 .o w m o z o p m co or co r 0, 0, n cc; .n vn In LO o CO N m� p e 4. p m j o c m ae CO 0 o o H 0 CO .n m N m 0 0 0 ti p Co m p T m v N T m v 07 0 m m W p p N on go m Y 1 e or or 1 2009 1 2008 L cc a) 2007 1 H 2006 1 Four Year Comparison $2,000,000 $4,000,000 $7,305,994 $7,359,258 $6,716,604 Taxes Collected Year to Date $5,642,516 $6,000,000 $8,000,000