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Home My WebLink AboutFS 2014-06-17 Item 2D - Report - 2014 First Quarter Sales Tax and Miscellaneous Revenue ReportTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: June 10, 2014 SUBJECT: Sales Tax and Miscellaneous Revenue Report — 1st Quarter 2014 Schedule I - Sales Tax in $1,000's 2014 SALES TAX REVENUE BUDGETED ANNUAL SALES TAX REVENUE % of BUDGET 3,508 15,010 23% Total sales tax collections for the first quarter were $87K below the same quarter in the previous year. New construction sales tax collection for first quarter was $92K lower compared to the same quarter in the previous year resulting in a 38% decrease. As of March 31st, the City has collected $283,066 in sales tax mitigation, which is 24% of the annual mitigation budget. 21 2013 Actual 2014 Actual YOY Change -- Month -- New I Other I Total New I Other I Total New Construction I Other Industries I Total Collected Rec'd Construc- tion Industries I Construct 1 tion Industries I Amount % I Amount % I Amount % Jan Mar $ 76 $1,038 . $ 1,114 $ 57 1 $ 1,049 I $ 1,106 $ (19) -25 %I $ 11 1 %I $ (8) -1% Feb Apr 77 1,1271 1,204 34 1,0471 1,081 (43) -56%! (80) -7 %I (123) -10% Mar May 86 � 1,191 i 1,277 56 1 1,265 i 1,321 (30) -35 %i 74 6 %i 44 3% Q -1 Totals $ 239 3,356 : $ 3,595 $ 147 : 3,361 : $ 3,508 $ (92) -38 %: 5 0 %: $ (87) -2% 2014 SALES TAX REVENUE BUDGETED ANNUAL SALES TAX REVENUE % of BUDGET 3,508 15,010 23% Total sales tax collections for the first quarter were $87K below the same quarter in the previous year. New construction sales tax collection for first quarter was $92K lower compared to the same quarter in the previous year resulting in a 38% decrease. As of March 31st, the City has collected $283,066 in sales tax mitigation, which is 24% of the annual mitigation budget. 21 22 INFORMATIONAL MEMO Page 2 Below is a graph of sales tax collections by type of industry showing overall change from first quarter 2013 revenue receipts to first quarter 2014. $8o,0o0 $60,000 $40,000 $20,000 s- $(20,000) $(40,000) $(60,000) $(80,000) $(100,000) $(120,000) Change YTD by Category* The increase in the Services category is partially due to several new establishments that previously did not have activity in the previous year. The miscellaneous category includes activities from unclassifiable establishments. Variance from this category is primarily due to 2013 activity from trust type organizations, which are not reported under a specific NAICS code. This same type of transaction did not reoccur in first quarter 2014 resulting in the negative variance. W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx Services, $64,612 WholesaleTrade, $19,500 Automotive, Transportation /Warehousing $4,511 $10,237 ■ Retail Trade, ($8,388) Manufacturing, $(26,516) Miscellaneous, ($57,952) ($92,213) Construction The increase in the Services category is partially due to several new establishments that previously did not have activity in the previous year. The miscellaneous category includes activities from unclassifiable establishments. Variance from this category is primarily due to 2013 activity from trust type organizations, which are not reported under a specific NAICS code. This same type of transaction did not reoccur in first quarter 2014 resulting in the negative variance. W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx INFORMATIONAL MEMO Page 3 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Miscellaneous Store Retailers category had the highest year over year increase at $14,738, which is largely due to one telecommunications retailer doubling its gross sales in 2014. This is followed by an increase of $11,899 in the Electronics and Appliances category. This increase is attributable to acceleration of sales from a systems integrator company. Activity from Clothing and Accessories category declined by 9% due to lower gross sales from numerous establishments. YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03% * 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) -8.84% * 722 Food Services, Drinking Places $ 368,046.80 $ 358,380.15 $ 9,667 2.70% * 443 Electronics and Appliances $ 231,481.44 $ 219,582.46 $ 11,899 5.42% * 423 Wholesale Trade, Durable Goods $ 221,554.05 $ 211,485.79 $ 10,068 4.76% * 453 Miscellaneous Store Retailers $ 180,060.33 $ 165,322.25 $ 14,738 8.91% * 441 Motor Vehicle and Parts Dealer $ 150,336.43 $ 140,120.17 $ 10,216 7.29% * 444 Building Material and Garden $ 121,708.61 $ 118,007.71 $ 3,701 3.14% * 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) -5.77% 517 Telecommunications $ 119,501.04 $ 109,581.23 $ 9,920 9.05% * Mitigated NAICS Code Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. The Construction of Buildings category resulted in a 54% decrease from the prior year due to significant decrease in construction activity from at least four major contractors. Permitting activity, ascompared to the previous year for the first quarter, also shows a decline. YTD YTD Dollar % Group Name Current Prior Diff. Diff. 999 Nonclassifiable Establishments $ 44,223.34 $ 144,238.43 $ (100,015) - 69.34% 236 Construction of Buildings $ 74,747.30 $ 162,909.50 $ (88,162) - 54.12% * 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) -8.84% 336 Transportation Equipment Man $ 33,164.24 $ 55,116.29 $ (21,952) - 39.83% 621 Ambulatory Health Care Service $ 10,750.14 $ 21,194.86 $ (10,445) - 49.28% * 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03% 522 Credit Intermediation $ 12,921.88 $ 21,843.91 $ (8,922) - 40.84% * 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) -5.77% 511 Publishing Industries $ 23,769.02 $ 29,489.64 $ (5,721) - 19.40% 611 Educational Services $ 11,819.55 $ 16,351.98 $ (4,532) - 27.72% * Mitigated NAICS Code W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx 23 24 INFORMATIONAL MEMO Page 4 The next two pages show graphs of sales tax receipts the City collected from major industries between 2010 through the current year. These categories include retail, services, wholesale, construction, and other consisting of manufacturing, transportation & warehousing, automotive, and miscellaneous. $2,400,000 $2,300,000 $2,200,000 $2,100,000 $2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000 Retail 01 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $ 200,000 $- Services Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx INFORMATIONAL MEMO Page 5 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Wholesale ■ ■ . ■ . ■ ■ ■ Q1 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Q2 Q3 Construction Q4 • 2010 • 2011 2012 • 2013 • 2014 Q1 Q2 Q3 Q4 • 2010 • 2011 2012 • 2013 • 2014 W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx 25 26 INFORMATIONAL MEMO Page 6 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- 01 Q2 Q3 Q4 • 2010 • 2011 2012 • 2013 2014 Revenue received from mitigation has been consistent. The City received $3.79 million in sales tax and mitigation for the first quarter. W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx INFORMATIONAL MEMO Page 7 Below is Schedule IV which shows quarterly gambling tax earned for the prior year, and the current year to date. Schedule IV - Gambling Tax (a) (c) 2014 Quarter 2013 2014 Prorated Earned Actual Actual Budget INCREASE (DECREASE) 2014 to 2013 Actuals 2014 Actuals to 2014 Budget Amount % Amount Q1 $ 557,272 $ 678,358 $ 537,068 $ 121,086 21.73% $ 141,290 26.31% Compared to 2013 first quarter, the City has collected approximately 22% more in gambling revenue due to higher receipts. Schedule V shows monthly admission tax receipts for the prior year and current year to date. Schedule V - Admissions Tax (b) (c) 2014 Quarter 2013 2014 Prorated Earned Actual Actual Budget INCREASE (DECREASE) 2014 to 2013 Actuals 2014 Actuals to 2014 Budget Amount % Amount % Jan $ 38,391 $ 47,314 $ 45,833 Feb 32,962 39,544 45,833 Mar 39,901 48,187 45,834 Q1 Totals $ 111,254 $ 135,045 $ 137,500 $ 8,923 6,582 8,286 $ 23,791 23.24% $ 1,481 19.97% (6,289) 20.77% 2,353 21.38% $ (2,455) 3.23% - 13.72% 5.13% -1.79% Admission tax receipts are 4% below budget for first quarter, and about 21% above prior year actual receipts. Attachments • Sales Tax Summary Gambling tax currently includes card games, punch boards, pull tabs, and amusement games. Excludes golf course admissions tax. Actuals reflected in Schedules IV and V are amounts earned in fourth quarter 2014. W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014- Q16.2014MEMO.docx 27 N CO SALES TAX SUMMARY 1st Quarter 2014 (Received in March 2014 - May 2014) NAICS CONSTRUCTION 13 TOTAL 236 Construction of Buildings 716,944 237 Heavy & Civil Construction 111,237 238 Specialty Trade Contractors 334,704 TOTAL CONSTRUCTION $ 1,162,885 $ Overall Construction Change from Previous Year 13 YTD 162,910 8,406 68,059 239,374 $ YTD 14YTD %Diff -54.1% 1.9% -6.2% 74,747 8,564 63,849 NAICS AUTOMOTIVE 13 TOTAL 13 YTD YTD 14YTD %Diff 147,160 ($92,213) -38.5% 441* Motor Vehicle & Parts Dealer 447* Gasoline Stations NAICS TOTAL AUTOMOTIVE 615,272 75,449 $ 690,721 $ Overall Automotive Change from Previous Year RETAIL TRADE 13 TOTAL 140,120 16,359 156,479 13YTD 150,336 7.3% 16,380 166,717 $10,237 14 YTD 0.1% 6.5% Diff YTD MANUFACTURING 13 TOTAL 13 YTD 14 YTD % Diff 442* Furniture & Home Furnishings 408,005 95,716 106,808 11.6% 443* Electronics & Appliances 997,182 219,582 231,481 5.4% 311 Food Manufacturing 9,926 1,494 727 - 51.3% 312 Beverage & Tobacco Products 5,267 1,402 1,326 -5.4% 313 Textile Mills 670 124 167 34.7% 314 Textile Product Mills 11,042 2,754 2,562 -7.0% 315 Apparel Manufacturing 685 47 111 136,8% 316 Leather & Allied Products 3 1 1 -58.2% 444* Building Material & Garden 565,653 118,008 121,709 3.1% 445* Food & Beverage Stores 206,924 47,886 48,093 0.4% 446* Health & Personal Care 219,169 48,728 55,679 14.3% 448* Clothing & Accessories 2,071,810 447,896 408,312 -8.8% 451* Sporting Goods, Hobby, Books 568,945 128,975 121,533 -5.8% 452* General Merchandise Stores 2,154,523 466,670 457,216 -2.0% 321* Wood Product Manufacturing 1,611 482 739 53.4% 453* Miscellaneous Store Retailers 692,525 165,322 180,060 8.9% 322* Paper Manufacturing 24,030 6,295 6,303 0.1% 454* Nonstore Retailers 174,653 38,735 38,240 -1.3% 323* Printing & Related Support 28,377 7,386 5,649 -23.5% TOTAL RETAIL TRADE $ 8,059,390 $ 1,777,519 $ 1,769,131 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 23 6,273 4,565 4 1,307 1,406 6 1,432 1,199 74.0% 9.6% - 14.7% 327* Nonmetallic Mineral Products 4,655 1,196 827 -30.9% 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 1,150 21,801 5,062 6 5,795 1,409 206 1,588 538 3480.2% -72.6% - 61.8% 334* Computer & Electronic Products 6,719 1,156 843 -27.1% 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 4,944 251,447 337* Furniture & Related Products 339* Miscellaneous Manufacturing 207 55,116 634 33,164 205.6% -39.8% 11,025 2,497 3,294 31.9% 13,014 2,967 TOTAL MANUFACTURING $ 412,288 $ 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 13 TOTAL 153 1,597 5,820 395 876 39,511 529 787 93,052 13 YTD 0 472 1,194 132 144 6,387 115 62 5,221 75.9% 66,537 ($26,516) 14YTD 0 6 464 246 281 11,943 98 64 -28.5% YTD % Diff 0.0% -98.6% -61.1% 86.3% 0.0% 87.0% 0.0% 3.0% 493* Warehousing & Storage 746 199 115 -42.4% TOTAL TRANSP & WHSING $ 50,413 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 13 TOTAL 8,707 13 YTD 423* WhIs Trade - Durable Goods 975,482 211,486 424* Whls Trade - Nondurable Goods 132,473 26,493 425* Wholesale Electronic Markets 13,218 $4,511 14 YTD 221,554 51.8% YTD % Diff 4.8% 36,104 36.3% 2,819 896 717 -20.0% WHOLESALE TRADE TOTAL $ 1,110,774 $ Overall Wholesale Change from Previous Year * Sales Tax Mitigation NAICS Codes 6/11/2014 238,875 $ 258,375 $19,500 8.2% Overall General Retail Change from Previous Year 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 13 TOTAL 587,449 97,434 464,703 286,461 29 181,408 58,682 91,502 133,647 2,031,720 216,087 61,978 $ 4,211,101 $ Overall Services Change from Previous Year MISCELLANEOUS 13 TOTAL 000 Unknown 0 111 -115 Agriculture, Forestry, Fishing 668 211 -221 Mining & Utilities 2,071 999 Unclassifiable Establishments 187,778 MISCELLANEOUS TOTAL $ 190,517 $ Overall Miscellaneous Change from Previous Year 13 TOTAL 13YTD 154,373 25,094 94,275 36,234 0 29,797 16,352 23,025 29,227 460,928 52.699 14.236 936,241 13 YTD 0 43 151 144,238 144,433 13YTD ($8,388) -0.5% YTD 14YTD %Diff 6.1 % -39.9% 11.5% 87.0% #DIV /0! 19.7% - 27.7% -20.6% 5.2% 485,014 5.2% 50,245 -4.7% 17,385 22.1% 163,719 15,080 105,139 67,755 0 35,676 11,820 18,288 30.733 GRAND TOTALS $15,888,089 $3,594,680 1,000,853 $64,612 14 YTD 41,867 148 242 44,223 86,481 ($57,952) 14YTD $3,508,472 6.9% YTD % Diff 0.0% 243.6% 60.0% -69.3% -40.1% YTD % Diff Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction ($86,208) -2.40% $6,005 Copy of TUK Sales Tax Rpt QI -2014 PMc.xlsx 0.18%