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Home My WebLink AboutFS 2011-05-03 Item 2B - Report - February 2011 Sales Tax Revenue Report City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Finance Director DATE: April 24, 2011 SUBJECT: Sales Tax Revenue for February 2011 Schedule I in 1,000's Sales Receipt 2010 2011 2011 Increase/(Decrease) %Increasei(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar 1,034 1,080 1,039 (41) (41) -3.80% 0.00% Feb Apr 1,006 1,033 1,043 10 (31) 0.97% -1.47% Mar May 1,157 1,179 (1,179) (1,210) 100.00% 36.76% Apr June 1,070 1,102 (1,102) (2,312) 100.00% 52.62% May July 1,067 1,138 (1,138) (3,450) 100.00% 62.36% June Aug 1,247 1,243 (1,243) (4,693) 100.00% 69.27% July Sept 1,251 1,299 (1,299) (5,992) 100.00% 74.21% Aug Oct 1,216 1,176 (1,176) (7,168) 100.00% 77.49% Sept Nov 1,357 1,185 (1,185) (8,353) 100.00% 80.05% Oct Dec 1,082 1,036 (1,036) (9,389) 100.00% 81.85% Nov Jan12 1,202 1,101 (1,101) (10,490) 100.00% 83.44% Dec Feb12 1,891 1,628 (1,628) (12,118) 100.00% 85.34% Totals 14,580 14,200 2,082 Mitigation Received 306 2,388 98.72% of Budget Incl. Mitigation Sales tax collections for February showed a modest increase versus the same month in the previous year. February represented the seventh consecutive increase, and ninth increase during the last twelve months. For February, collections more than the budget for the month, and more than actual collections in the same month in the previous year. Actual receipts for February were $10,000 more than budget, and $37,000 more than the same period last year. We are up 0.97% for the month compared to budget, and up by 2.06% compared to the same month last year. This is the first month since August 2008 that actual sales tax collections for the month were more than the budgeted amount. Including mitigation payments, we are currently at 98.72% of budget for the year to date. This includes a mitigation payment of $305,985.77 received on March 31, 2011. The last mitigation payment we received was on December 31, 2010 for $308,257.11. Mitigation payments are now annualized and will only be adjusted once per year in the fall, effective with the December 31S payment. Staff completed work on the last mitigation detail file and submitted to the Department 7 INFORMATIONAL MEMO Page 2 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. 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 YTD YTD Dollar Group Name Current Prior Diff. Diff. 448* Clothing and Accessories 265,910 256,866 9,044 3.52% 452* General Merchandise Stores 228,985 276,800 (47,815) 17.27% 443* Electronics and Appliances 213,198 133,541 79,657 59.65% 722* Food Services, Drinking Places 201,748 216,276 (14,528) -6.72% 423* Wholesale Trade, Durable Goods 163,947 220,597 (56,651) 25.68% 441* Motor Vehicle and Parts Dealer 90,088 94,343 (4,256) 4.51% 451* Sporting Goods, Hobby, Books 89,870 86,241 3,629 4.21% 453* Miscellaneous Store Retailers 75,377 68,685 6,692 9.74% 236 Construction of Buildings 70,565 53,855 16,711 31.03% 532 Rental and Leasing Services 69,753 44,423 25,330 57.02% Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Wholesale Trade and Durable Goods is down by 25.68 and General Merchandise Stores is down by 17.27 As illustrated above, four of the top ten merchant categories have declined versus prior year, and all but one 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 year -to -date. Schedule III YTD YTD Dollar Group Name Current Prior Diff. Diff. 423* Wholesale Trade, Durable Goods 163,947 220,597 (56,651) 25.68% 541 Professional, Scientific, Tech 22,791 28,950 (6,160) 21.28% 517 Telecommunications 52,889 65,295 (12,406) 19.00% 452* General Merchandise Stores 228,985 276,800 (47,815) 17.27% 811 Repair and Maintenance 13,723 15,029 (1,306) -8.69% 444* Building Material and Garden 63,426 68,742 (5,316) -7.73% 722* Food Services, Drinking Places 201,748 216,276 (14,528) -6.72% 424* Wholesale Trade, Nondurable 14,005 14,824 (819) -5.52% 441* Motor Vehicle and Parts Dealer 90,088 94,343 (4,256) 4.51% 721* Accommodation 61,391 64,014 (2,623) -4.10% Mitigated NAICS Code Attached is a Sales Tax Summary comparing year -to -date 2011 vs. 2010 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last six years. Please let me know if you have any comments or questions. Thank you. 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