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HomeMy WebLinkAboutFS 2010-06-22 Item 2D - Report - March 2010 Sales Tax Revenue ReportTO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: May 25, 2010 SUBJECT: Sales Tax Revenue for March 2010 Schedule I in 1,000's Sales Receipt 2009 2010 2010 Increase /(Decrease) %Increase/(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,172 1,483 1,036 (447) (447) 30.14% 0.00% Feb Apr 1,051 1,462 1,006 (456) (903) 31.19% 30.66% Mar May 1,146 1,705 1,157 (548) (1,451) 32.14% 31.20% Apr June 1,191 1,578 (1,578) (3,029) 100.00% 48.64% May July 1,082 1,603 (1,603) (4,632) 100.00% 59.15% June Aug 1,217 1,812 (1,812) (6,444) 100.00% 66.83% July Sept 1,473 1,793 (1,793) (8,237) 100.00% 72.03% Aug Oct 1,118 1,656 (1,656) (9,893) 100.00% 75.57% Sept Nov 1,110 1,682 (1,682) (11,575) 100.00% 78.35% Oct Dec 1,032 1,556 (1,556) (13,131) 100.00% 80.41% Nov Jan11 1,140 1,631 (1,631) (14,762) 100.00% 82.19% Dec Feb11 1,690 2,270 (2,270) (17,032) 100.00% 84.19% Totals 14,422 20,231 3,199 Mitigation Received 312 3,511 75.51% of Budget Incl. Mitigation Jim Haggerton, Mayor Sales tax collections showed the first increase in eighteen months in March compared to the same period in the prior year. For March, collections were Tess than budget and slightly more than the same month in the prior year. Actual receipts for March were $548,000 less than budget, and $11,000 greater than the same period last year. We are down 32.14% for the month compared to budget, and up by 1.00% compared to the same month last year. We are now down 31.20% for the year compared to budget, and down by 5.05% compared to the same period last year. The chart above also includes the mitigation payment we received at the end of March, which is actually for the fourth quarter of 2009 but is included in 2010 revenue because it was received so far after the end of 2009. Including the mitigation payment, we are currently at 75.51% of budget for the year to date. The mitigation payment we received on March 31s was $311,653.10. This the same amount as the last mitigation payment received on December 31s because the payments are now annualized and will only be adjusted once per year in the fall. Staff completed work on the last mitigation detail file and submitted to the Department of Revenue a list of firms that should be removed from the mitigation calculation process. These firms are ones that were offsetting other losses, thereby reducing our mitigation payment. INFORMATIONAL MEMO Page 2 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 most of the classifications. Schedule II Group Name 452* General Merchandise Stores 448* Clothing and Accessories 722* Food Services, Drinking Places 423* Wholesale Trade, Durable Goods 443* Electronics and Appliances 441* Motor Vehicle and Parts Dealer 451* Sporting Goods, Hobby, Books 444* Building Material and Garden 453* Miscellaneous Store Retailers 721* Accommodation Mitigated NAICS Code Schedule III YTD Group Name Current 236 Construction of Buildings 76,947 336 Transportation Equipment Man 23,693 238 Specialty Trade Contractors 66,514 561 Administrative and Support Svc 24,309 424* Wholesale Trade, Nondurable 23,556 441* Motor Vehicle and Parts Dealer 150,236 323* Printing and Related Support 12,685 453* Miscellaneous Store Retailers 109,857 541 Professional, Scientific, Tech 43,723 721* Accommodation 101,035 Mitigated NAICS Code YTD YTD Dollar Current Prior Diff. Diff. 437,400 434,202 3,198 0.74% 420,095 410,926 9,168 2.23% 329,288 312,054 17,234 5.52% 298,119 296,753 1,365 0.46% 220,941 244,252 (23,311) -9.54% 150,236 202,359 (52,123) 25.76% 136,928 127,123 9,805 7.71% 110,161 104,959 5,202 4.96% 109,857 139,975 (30,117) 21.52% 101,035 114,355 (13,319) 11.65% As you can see there are large variances from last year for the same time period. For instance, sales tax for Motor Vehicle and Parts Dealer is down by 25.76 and Miscellaneous Store Retailers is down by 21.52 As you can see from Schedule 11, four of the top ten merchant categories have declined versus prior year, and all of the ten industry classification codes are ones for which we receive streamlined sales tax mitigation. It should be noted that for March, this was the first month in over a year- and -a -half that the majority of the largest industry classifications had gains for the year compared to the same period in the prior year. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Attached is a Sales Tax Summary comparing year -to -date 2010 vs. 2009 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last five years. Please let me know if you have any comments or questions. Thank you. W:1FIN Projects\Sales Tax Information\Sales Tax Files from Shawn120101Info Memo Sales Tax 052510.docx YTD Dollar Prior Diff. Diff. 166,100 (89,152) 53.67% 40,195 (16,503) 41.06% 110,709 (44,195) 39.92% 37,862 (13,553) 35.79% 32,006 (8,450) 26.40% 202,359 (52,123) 25.76% 16,280 (3,595) 22.08% 139,975 (30,117) 21.52% 50,841 (7,117) 14.00% 114,355 (13,319) 11.65% SALES TAX SUMMARY MARCH 2010 2010 2009 L a 2008 2007 2006 Five Year Comparison $1,000,000 $2,000,000 $3,000,000 $4,000,000 Taxes Collected Year to Date $5,000,000