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Home My WebLink AboutFS 2009-10-06 Item 2E - Report - July 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: September 23, 2009 SUBJECT: Sales Tax Revenue for July 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 1,051 (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 1,217 (540) (2,409) 30.73% 25.99% July Sept 1,535 1,661 1,473 (188) (2,366) 11.32% 23.76% Aug Oct 1,555 1,647 Sept Nov 1,426 1,685 Oct Dec 1,298 1,521 Nov Jan10 1,265 1,589 Dec Feb10 1,723 2,175 Totals 17,753 19,546 8,332 1,277 9,609 87.92% of Budget Incl. Mitigation Jim Haggerton, Mayor in 1,000's Sales tax collections showed the eleventh consecutive decrease in July compared to the same period in the prior year. For 2009, collections were less than both budget and the same month in the prior year, but much closer to each number than we've been in the last eleven months. Actual receipts for July 2009 were $188,000 less than budget, and $62,000 less than the same period last year. We are now down 23.76% for the year compared to budget, and 20.54% compared to the same period last year. The chart above also includes the mitigation payment we received at the end of March, June and September. Including the mitigation payment, we are currently at 88% of budget for the year to date. The mitigation payment we received in September for second quarter 2009 was $536,001.90. This was a 54.9% increase from the $346,046.24 we received for first quarter 2009. 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 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 451* Sporting Goods, Hobby, Books 444* Building Material and Garden 453* Miscellaneous Store Retailers 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 61.35 Miscellaneous Store Retailers is down by 31.80 and Wholesale Trade and Durable Goods is down by 27.53 These declines are offset by very small increases in other areas, such as Food Services and Drinking Places, which increased by 1.53 and Clothing and Accessories, which increased by 0.07 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 July. Schedule III Group Name 323* Printing and Related Support 334* Computer and Electronic Produc 236 Construction of Buildings 442* Furniture and Home Furnishings 237 Heavy and Civil Construction 522 Credit Intermediation 541 Professional, Scientific, Tech 621 Ambulatory Health Care Service 453* Miscellaneous Store Retailers 423* Wholesale Trade, Durable Goods Mitigated NAICS Code Attached is a Sales Tax Summary comparing year -to -date 2009 vs. 2008 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last four years. H:\ Sales Tax120091Info Memo Sales Tax 092309.doc YTD Current 1,088,903 1,074,615 921,221 750,775 516,126 430,464 327,348 309,294 301,956 286,370 YTD YTD Dollar Current Prior Diff. Diff. 37,110 108,109 (70,998) 65.67 11,216 31,848 (20,631) 64.78% 327,348 846,869 (519,521) 61.35% 194,471 439,672 (245,202) 55.77% 44,397 78,697 (34,300) 43.59% 17,425 30,764 (13,339) 43.36% 98,787 154,627 (55,840) -36.11% 34,160 52,746 (18,586) 35.24% 286,370 419,911 (133,541) 31.80% 921,221 1,271,180 (349,959) 27.53% Please let me know if you have any comments or questions. Thank you. YTD Dollar Prior Diff. Diff. 1,247,743 (158,840) 12.73% 1,073,907 708 0.07% 1,271,180 (349,959) 27.53% 739,486 11,288 1.53% 627,834 (111,708) 17.79% 578,900 (148,436) 25.64% 846,869 (519,521) 61.35% 347,681 (38,386) 11.04% 397,356 (95,400) -24.01% 419,911 (133,541) 31.80% 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 Fabricated 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 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 Couriers Messengers 476 I 493' Warehousing Storage 781 TOTAL TRANSP WHSING 44,475 Overall Transportation Change from Previous Year WHOLESALE TRADE 08 TOTAL 423' WhlsTrade- 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 Sales Tax Mitigation NAICS Codes 09/23/2009 08 TOTAL 4,997 2,328 1,050 22,660 215 9 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 SALES TAX SUMMARY July 2009 (Received in September) YTD 08 YTD 09 YTD %Diff 846,869 327,348 -61.3% 78,697 44,397 -43.6% 298,707 221,050 -26.0% 1,224,272 592,795 (6631,478) -51.6% YTD 08 YTD 09 YTD Diff 2,928 744 -74.6% 872 1,705 95.5% 42 155 265.2% 16,960 7,932 -53.2% 92 37 -60.4% 2 4 113.0% 6,106 1,971 -67.7% J 11,872 11,303 -4.8% I 106,109 37,110 -65.7% I 6,188 2,802 -54.7% 5,554 3,741 -32.6% 3,014 2,110 -30.0% 2,790 1,172 -58.0% 26 101 280.4% 3,468 1,844 -46.8% 11,838 1,969 116.6% 31,848 11,216 -64.6% 443 90 -79.6% 109,909 80,383 -26.9% 26,676 5,802 -78.3% f 11,903 7,417 -37.7% J 336,965 179,606 (1157,359) -46.7% 1 YTD 08 YTD 09 YTD Diff 0 0 0.0% 1,115 833 -25.2% 262 1,412 438.1% 6,674 6,700 0.4% 16,336 13,888 -15.0% 37 0 100.0% 462 32 -93.0% 444 714 60.7% f 25,331 23,580 ($1,751) -6.9% YTD 08 YTD 09 YTD Diff 1,271,180 921,221 -27.5% 53,672 62,706 16.8% 2,074 1,177 -43.3% 1,326,925 985,103 ($341,822) -25.8% NAICS 1 441` I 447' NAICS 442' 443* 444* 445* 446' 448' 451' 452' 453* 454* Page 1 AUTOMOTIVE Motor Vehicle Parts Dealer Gasoline Stations TOTAL AUTOMOTNE 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 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 08 TOTAL 993,146 73,034 1,066,181 Overall Automotive Change from Previous Year 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 9 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 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 08 TOTAL GRAND TOTALS $17,752,678 Grand Total Change from Previous Year 08 YTD 804 201 9,625 16,021 26,651 08 YTD 910,487,129 YTD O8YTD 09YTD %Diff 578,900 430,464 -25.6% 46,327 35,920 -22.5% 625,227 466,384 ($158,843) 08 YTD 09 YTD Diff 439,672 194,471 -55.8% 627,834 516,126 -17.8% 397,356 301,956 -24.0% 62,258 49,432 -20.6% 83,732 105,664 26.2% 1,073,907 1,074,615 0.1% 347,681 309,294 -11.0% 1,247,743 1,088,903 -12.7% 419,911 286,370 -31.8% 62,958 157,595 150.3% 4,763,051 4,084,425 ($678,627) YTD 08 YTD 09 YTD Diff 327,172 310,785 -5.0% 38,165 24,286 -36.4% 242,856 208,540 -14.1% 154,627 98,787 -36.1% 1,337 727 -45.6% 90,084 76,207 -15.4% 3,796 22,370 489.4% 65,791 46,166 -29.8% 66,063 54,573 -17.4% 1,056,715 1,026,773 -2.8% I 111,806 106,326 -4.9% 295 13,589 4507.9% 2,158,706 1,989,130 (1169,576) -7.9% YTD 09 YTD Diff 397 -50.6% 80 -60.3% 8,922 -7.3% 2,447 -84.7% 11,846 ($14,805) YTD 09 YTD Diff $8,332,869 ($2,154,261) MK Sales Tax Rpl 200907.xIs -25.4% -14.2% -55.6% -20.54% 2009 L 2008 ca a) 2007 2006 $10,487,133 Four Year Comparison $9,938,118 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Taxes Collected Year to Date $8,332 885