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Home My WebLink AboutFS 2011-09-07 Item 2D - Report - June 2011 Miscellaneous Revenue ReportCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO FROM DATE Mayor Haggerton Finance and Safety Committee Shawn Hunstock, Interim City Administrator August 29, 2011 SUBJECT: Miscellaneous Revenue Report for June 2011 Schedule I -Sales Tax 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 1,252 150 393 13.61% 8.94% May July 1,067 1,138 1,278 140 533 12.30% 9.63% June Aug 1,249 1,243 1,386 143 676 11.50% 9.98% July Sept 1,251 1,299 (1,299) (623) 100.00% -7.72% Aug Oct 1,216 1,176 (1,176) (1,799) 100.00% 19.45% Sept Nov 1,357 1,185 (1,185) (2,984) 100.00% 28.60% Oct Dec 1,082 1,036 (1,036) (4,020) 100.00% 35.04% Nov Jan 12 1,202 1,101 (1,101) (5,121) 100.00% 40.73% Dec Feb12 1,889 1,628 (1,628) (6,749) 100.00% -47.53% Totals 14,580 14,200 7,451 Mitigation Received 611 8,062 109.15% of Budget Incl. Mitigation Sales tax collections for June showed a significant increase versus the same month in the previous year. June represented the eleventh consecutive increase over the twelve months. For June, collections more than the budget for the month, and more than actual collections in the same month the previous year. Actual receipts for June were $143,000 more than budget, and $137,000 more than the same period last year. We are up 11.50% for the month compared to budget, and up by 13.19% compared to the same month last year. Not including one -time money from new construction, we are 9.24% ahead of last year's collections to date. This is just the sixth 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 109.16% of budget for the year to date. This includes a mitigation payment of $305,295.38 received on June 30, 2011. 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 65 INFORMATIONAL MEMO Page 2 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 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 up by 81.66 Electronics and Appliances is up by 66.47 and Wholesale Trade Durable Goods is down by 7.23 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. 448* Clothing and Accessories 902,434 870,515 31,919 3.67% 452* General Merchandise Stores 878,601 888,669 (10,067) 1.13% 443* Electronics and Appliances 721,920 433,662 288,257 66.47% 722* Food Services, Drinking Places 655,464 660,216 (4,752) -0.72% 423* Wholesale Trade, Durable Goods 553,403 596,545 (43,142) -7.23% 236 Construction of Buildings 441,691 243,147 198,544 81.66% 441* Motor Vehicle and Parts Dealer 308,874 302,191 6,683 2.21% 451* Sporting Goods, Hobby, Books 289,029 286,712 2,316 0.81% 444* Building Material and Garden 241,066 249,590 (8,525) -3.42% 453* Miscellaneous Store Retailers 228,741 221,936 6,805 3.07% 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 up by 81.66 Electronics and Appliances is up by 66.47 and Wholesale Trade Durable Goods is down by 7.23 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 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. Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current year to date. WAFIN Projects \Sales Tax Information \Sales Tax Files from Shawn\2011\Info Memo Revenue Report 08292011.docx i• YTD YTD Dollar Group Name Current Prior Diff. Diff. 531 Real Estate 18,978 22,103 (3,125) 14.14% 811 Repair and Maintenance 44,594 50,575 (5,981) 11.83% 512 Motion Picture, Sound Record 13,688 15,333 (1,645) 10.73% 517 Telecommunications 170,182 186,198 (16,015) -8.60% 423* Wholesale Trade, Durable Goods 553,403 596,545 (43,142) -7.23% 323* Printing and Related Support 23,157 24,105 (948) -3.93% 444* Building Material and Garden 241,066 249,590 (8,525) -3.42% 424* Wholesale Trade, Nondurable 48,539 49,799 (1,260) 2.53% 452* General Merchandise Stores 878,601 888,669 (10,067) 1.13% 722* Food Services, Drinking Places 655,464 660,216 (4,752) -0.72% 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. Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current year to date. WAFIN Projects \Sales Tax Information \Sales Tax Files from Shawn\2011\Info Memo Revenue Report 08292011.docx i• INFORMATIONAL MEMO Page 3 Schedule IV Gambling Tax Actuals Sales 2010 2011 2011 Increase /(Decrease) %Increase /(Decrease) Quarter Actual Estimated Actual Month YTD Month YTD Jan Mar 417,078 464,547 478,118 13,571 13,571 2.92% 0.00% Apr Jun 532,667 593,292 389,776 (203,516) (189,945) 34.30% 17.96% Jul Sep 439,255 489,248 (489,248) (679,193) 100.00% 43.90% Oct Dec 496,414 552,913 (552,913) (1,232,106) 100.00% 58.67% Totals $1,885,414 2,100,000 867,894 373 (69,343) 0.97% 29.10% As you can see, we are currently $189,945 under budget through June 2011, or 17.96% below budget. Actual receipts for 2011 are 8.62% below actual receipts to date in 2010. However, this is largely due to one of the casinos being late with their second quarter tax payment. As of today's date, that casino has not yet paid their second quarter taxes. Below is Schedule V which shows monthly admission tax receipts for the prior year and current year to date. Schedule V Admissions Tax Actuals Sales 2010 2011 2011 Increase /(Decrease) %Increase /(Decrease) Month Actual Estimated Actual Month YTD Month YTD Jan 52,751 57,532 31,217 $(26,315) (26,315) 45.74% 0.00% Feb 39,232 42,788 30,403 (12,385) (38,701) 28.95% 38.58% Mar 51,861 56,562 39,696 (16,866) (55,566) 29.82% 35.42% Apr 39,294 42,855 28,705 (14,150) (69,717) 33.02% 34.90% May 35,365 38,570 38,944 373 (69,343) 0.97% 29.10% June 48,428 52,818 57,325 4,508 (64,836) 8.53% 22.27% July 62,293 67,939 (67,939) (132,775) 100.00% 36.98% Aug 42,284 46,116 (46,116) (178,892) 100.00% 44.15% Sept 37,853 41,284 (41,284) (220,176) 100.00% 49.32% Oct 27,638 30,144 (30,144) (250,320) 100.00% 52.52% Nov 35,594 38,820 (38,820) (289,140) 100.00% 56.10% Dec 50,036 54,571 (54,571) (343,711) 100.00% 60.30% Totals 522,628 570,000 226,289 Admission tax receipts are currently 22.27% below budget for the year, and 15.23% below prior year actual receipts. We are working with one of the largest taxpayers for admissions tax to determine the cause of the decline. It appears that the decline is due to a decline in economic activity for that industry, a movie theater, but we are working on confirming the tax payments with the Department of Revenue. Also, it is expected that there will be an increase in admission tax payments with the recent opening of the Fly indoor skydiving facility near the mall. Please let me know if you have any comments or questions. Thank you. WAFIN Projects\Sales Tax Information\Sales Tax Files from Shawn12011\Info Memo Revenue Report 08292011.docx 67 Sales Tax Summary $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 Sales Taxes Collected Year to Date