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HomeMy WebLinkAboutFS 2011-07-06 Item 2D - Report - March 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: June 15, 2011 SUBJECT: Sales Tax Revenue for March 2011 Schedule I in 1,000's Sales Receipt 2010 2011 2011 Increase /(Decrease) %Increase /(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 1,453 274 243 23.24% 7.38% Apr June 1,070 1,102 (1,102) (859) 100.00% 19.55% May July 1,067 1,138 (1,138) (1,997) 100.00% 36.10% June Aug 1,247 1,243 (1,243) (3,240) 100.00% 47.82% July Sept 1,251 1,299 (1,299) (4,539) 100.00% 56.22% Aug Oct 1,216 1,176 (1,176) (5,715) 100.00% 61.78% Sept Nov 1,357 1,185 (1,185) (6,900) 100.00% 66.12% Oct Dec 1,082 1,036 (1,036) (7,936) 100.00% 69.18% Nov Jan12 1,202 1,101 (1,101) (9,037) 100.00% 71.88% Dec Feb12 1,891 1,628 (1,628) (10,665) 100.00% 75.11% Totals 14,580 14,200 3,535 Mitigation Received 306 3,841 106.75% of Budget Incl. Mitigation Sales tax collections for March showed a significant increase versus the same month in the previous year. March represented the eighth consecutive increase, and tenth increase during the last twelve months. For March, collections more than the budget for the month, and more than actual collections in the same month the previous year. Actual receipts for March were $274,000 more than budget, and $296,000 more than the same period last year. We are up 23.24% for the month compared to budget, and up by 10.57% compared to the same month last year. This is just the second month since August 2008 that actual sales tax collections for the month were more than the budgeted amount. It should be noted that of the $296,000 increase from the same month in the prior year, approximately $120,000 of that was due to an amnesty program the Department of Revenue had earlier this year. Under the program businesses had to apply for a waiver of penalties and interest for unreported, or underreported, sales tax from prior periods and prior years. If the application was approved by DOR, the business had to pay the appropriate tax between February 1S and April 30 that would have otherwise been due if reported correctly initially. This 47 INFORMATIONAL MEMO Page 2 is the first -ever amnesty program for DOR and was enacted by the legislature at the request of the Governor. Excluding the amnesty amount received by Tukwila, the net increase due to an overall increase in retail sales is $176,000. Including mitigation payments, we are currently at 106.75% 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 31 payment. 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. 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 437,148 420,095 17,053 4.06% 452* General Merchandise Stores 423,952 437,400 (13,447) -3.07% 443* Electronics and Appliances 377,090 220,941 156,149 70.67% 722* Food Services, Drinking Places 319,289 329,288 (9,998) -3.04% 423* Wholesale Trade, Durable Goods 253,386 298,119 (44,733) 15.01% 441* Motor Vehicle and Parts Dealer 142,237 150,236 (7,999) -5.32% 451* Sporting Goods, Hobby, Books 140,470 136,928 3,542 2.59% 236 Construction of Buildings 136,396 76,947 59,448 77.26% 453* Miscellaneous Store Retailers 116,845 109,857 6,988 6.36% 444* Building Material and Garden 103,636 110,161 (6,525) -5.92% Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Electronics and Appliances is up by 70.67 Wholesale Trade and Durable Goods is down by 15.01 and Construction of Buildings is up by 77.26 As illustrated above, five 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. WAFIN Projects\Sales Tax Information\Sales Tax Files from Shawn12011\Info Memo Sales Tax 06152011.docx 48 INFORMATIONAL MEMO Page 3 Schedule III YTD YTD Dollar Group Name Current Prior Diff. Diff. 518 Internet Service Providers 15,550 25,573 (10,022) 39.19% 423* Wholesale Trade, Durable Goods 253,386 298,119 (44,733) 15.01% 811 Repair and Maintenance 21,891 25,389 (3,499) 13.78% 323* Printing and Related Support 11,143 12,685 (1,542) 12.16% 531 Real Estate 10,001 11,143 (1,142) 10.25% 517 Telecommunications 89,492 97,475 (7,983) -8.19% 444* Building Material and Garden 103,636 110,161 (6,525) 5.92% 441* Motor Vehicle and Parts Dealer 142,237 150,236 (7,999) 5.32% 452* General Merchandise Stores 423,952 437,400 (13,447) -3.07% 722* Food Services, Drinking Places 319,289 329,288 (9,998) -3.04% 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. WAFIN Projects\Sales Tax Informabon\Sales Tax Files from Shawn12011\Info Memo Sales Tax 06152011.docx 49 50 SALES TAX SUMMARY March 2011 (Received in May) NAICS CONSTRUCTION 10 TOTAL 236 Construction of Buildings 588,919 237 Heavy & Civil Construction 37,857 238 Specialty Trade Contractors 290,486 TOTAL CONSTRUCTION $ 917,262 $ Overall Construction Change from Previous Year 10YTD 76,947 3,665 66,514 147,126 $ 11 YTD 136,396 8,821 103,454 248,671 0101,544 YTD % Diff 77.3% 140.7% 55.5% NAICS AUTOMOTIVE 10 TOTAL 10 YTD 11 YTD YTD % Diff 441* Motor Vehicle & Parts Dealer 596,727 150,236 142,237 -5.3% 447' Gasoline Stations 67,583 15,476 15,994 3.3% 69.0% NAICS TOTAL AUTOMOTIVE $ 664,310 $ Overall Automotive Change from Previous Year RETAIL TRADE 10 TOTAL 165,712 $ 10 YTD 158,231 ($7,481) 11 YTD % Diff -4.5% YTD MANUFACTURING 10 TOTAL 10 YTD 11 YTD % Diff 442' Furniture & Home Furnishings 374,775 86,735 89,866 3,6% 443* Electronics & Appliances 1,003,415 220,941 377,090 70.7% 311 Food Manufacturing 5,995 218 1,039 376.9% 312 Beverage & Tobacco Products -895 -3,632 734 -120.2% 313 Textile Mills 88 5 97 1673.7% 314 Textile Product Mills 13,503 2,896 2,067 - 28.6% 315 Apparel Manufacturing 38 0 48 10093.6% 316 Leather & Allied Products 2 0 2 #DIV/0! 444* Building Material & Garden 499,394 110,161 103,636 -5.9% 445* Food & Beverage Stores 101,958 20,368 28,421 39.5% 446* Health & Personal Care 178,919 43,238 64,534 49.3% 448* Clothing & Accessories 2,021,704 420,095 437,148 4.1% 451* Sporting Goods, Hobby, Books 648,678 136,928 140,470 2.6% 452* General Merchandise Stores 2,068,263 437,400 423,952 -3.1% 321* Wood Product Manufacturing 1,627 225 403 79.2% 453* Miscellaneous Store Retailers 481,324 109,857 116,845 6.4% 322* Paper Manufacturing 21,585 5,686 5,049 -11.2% 454* Nonstore Retailers 111,045 22,928 27,657 20.6% 323* Printing & Related Support 54,341 12,685 11,143 -12.2% TOTAL RETAIL TRADE $ 7,489,475 $ 1,608,651 $ 1,809,620 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 3,062 7,458 3,142 552 1,502 924 975 2,943 1,290 76.6% 96.0% 39.6% 327* Nonmetallic Mineral Products 3,667 437 1,010 131.3% 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' Fumiture & Related Products 339' Miscellaneous Manufacturing 725 -2,641 10.120 36 1,572 6,327 42 1,178 -103 17.1% -25.0% -101.6% 5,592 1,401 1,965 40.2% 523 290,984 10,326 11,140 78 23,693 2,531 3,183 60,318 $ TOTAL MANUFACTURING $ 440,381 $ Overall Manufacturing Change from Previous Year TRANSPORTATION & WAREHOUSING 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers & Messengers 493' Warehousing & Storage 10 TOTAL 4 731 344 17,813 0 29,089 0 372 -88 36,594 -212.2% 54.5% 1,912 -24.4% 2,295 -27.9% 10YTD 0 187 30 6,574 0 2,822 87 70,595 010,277 11 YTD 25 209 377 4,191 176 7,353 0 3 YTD % Diff 0.0% 12.0% 1172.2% -36.2% #DIV/0! 160.6% #DIV /0! -97.0% 17.0% Overall General Retail Change from Previous Year SERVICES 957 252 247 -2.1% TOTAL TRANSP & WHSING $ 49,309 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 10 TOTAL 9,952 $ 10 YTD 12,581 02,629 11 YTD YTD % Diff 26.4% 423* Whls Trade - Durable Goods 1,236,905 298,119 253,386 -15.0% 424* Whls Trade - Nondurable Goods 112,063 23,556 23,962 1.7% 425* Wholesale Electronic Markets 2,781 530 500 -5.7% WHOLESALE TRADE TOTAL $ 1,351,748 $ Overall Wholesale Change from Previous Year Sales Tax Mitigation NAICS Codes 06/15/2011 322,204 $ 277,848 ($44,356) -13.8% 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 10 TOTAL 553,763 54,281 420,554 183,693 250 111,875 61,029 74,501 110,146 10YTD 136,825 11,961 82,949 43,723 158 25,326 14,773 15,367 23,573 5200,969 11 YTD 116,301 18,006 108,456 50,253 92 29,908 16,445 22,525 25,846 YTD % Diff -15.0% 50.5% 30.8% 14.9% -41.4% 18.1% 11.3% 46.6% 9.6% 12.5% 1 72X' Accommodation & Food Svcs 1,769,600 430,323 419,062 -2.6% 81X Other Services 92X Public Administration TOTAL SERVICES 185,696 26,395 $ 3,551,783 $ Overall Services Change from Previous Year MISCELLANEOUS 10 TOTAL 000 Unknown 43 111 -115 Agriculture, Forestry, Fishing 313 211 -221 Mining & Utilities 14,355 999 Unclassifiable Establishments 100,745 MISCELLANEOUS TOTAL $ 115,457 $ Overall Miscellaneous Change from Previous Year Page 1 10 TOTAL 45,648 4,801 835,428 $ 10YTD 1 140 2,046 47,108 49,295 $ 10YTD 42,903 6,791 856,589 $21,161 -6.0% 41.4% 11 YTD YTD % Diff 0 - 100.0% -22.4% -42.5% 109.8% 109 1,177 98,812 100,099 $50,803 2.5% 11 YTD YTD % Diff 103.1% GRAND TOTALS $14,579,726 $3,198,687 $3,534,233 Grand Total Change from Previous Year $335,546 TUK Sales Tax RPI 201103.4sx 10.49% Six Year Comparison M 2011 $3,564"238 2010 Womp I I M.0 $3,198,6 1, i 2009 $3,369,065 2008 $4 0 I 2007 ZKJ8U,bUU 2006 J, i $1,000,000 $2,000,000 $3,000,000 $4,000,000 Taxes Collected Year to Date 52