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Home My WebLink AboutFS 2015-09-22 Item 2B - Report - 2015 Second Quarter Sales Tax and Miscellaneous Revenue ReportTO: FROM: BY: DATE: SUBJECT: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Finance Director Lily Jue, Fiscal Coordinator September 22, 2015 Sales Tax and Miscellaneous Revenue Report - 2nd Quarter 2015 Schedule I - Sales Tax in $1,000's Second quarter sales tax collections through June were $802K more than the same quarter in the previous year, resulting in a 21% increase. There was an increase in construction sales tax of $156K over the same quarter last year, or up by 84% as well as an increase in sales tax from other industries of $646K which resulted in a rise of 18 %. As of June 30th, revenue that the City has received from sales tax mitigation totals $566,433, which is 50% of the annual mitigation budget. 7 2014 Actual 2015 Actual YOY Change Other -- Month -- I Other ; Total ; Other ; Total Construction ; Industries ! Total Collect- Construca 1 Construca 1 ! i ed Rec'd tion Industries � tion I Industries Amount % Amount % i Amount Jan Mar $ 57 i $ 1,049 i $ 1,106 $ 85 i $ 1,195 1 $ 1,280 $ 28 49 %i $ 146 14 %i $ 174 16% Feb Apr 34 1 1,047 i 1,081 86 1 1,227 i 1,313 52 153 %1 180 17 %1 232 21% Mar May 56 j 1,265 1 1,321 99 j 1,362 j 1,461 43 78 %1 97 8 %1 140 11% Q -1 Totals $ 147 1 3,361 1 $ 3,508 $ 270 1 3,784 1 $ 4,054 $ 123 84 %1 423 13 %� $ 546 16% Apr Jun 57 ; 1,135 ; 1,192 109 1,210 1,319 52 91%; 75 7 %1 127 11% May Jul 53 ; 1,201 ; 1,254 91 1,453; 1,544 38 72 %; 252 21 %; 290 23% Jun Aug 75 ! 1,303 ! 1,378 141 ! 1,621 ! 1,762 66 88 %! 318 24 %! 384 28% Q -2 Totals $ 185 ! 3,639 ! $ 3,824 $ 341 ! 4,285 ! $ 4,626 $ 156 84 %! 646 18 %! $ 802 21% Jul Sep 80 i 1,315 i 1,395 - i - j - - -1 - - - - Aug Oct 87 i 1,301 i 1,388 - - I - - -1 - - i - - Sep Nov 91 i 1,340 i 1,431 - i - i - - -i - - i - - Q -3 Totals $ 258 1 3,956 1 $ 4,214 $ - i i $ - $ - j i $ - - Oct Dec 64; 1,319 I 1,383 - i i i Nov Jan 87 ; 1,396 ; 1,483 - - - - - - - - Dec Feb 78 ! 1,857 ! 1,935 - i - i - -i - - - Q-4 Totals $ 229 ! 4,572 ! $ 4,801 $ - , - , $ - $ - -! - - $ - - Totals $ 819 j 15,528 i $ 16,347 $ 612 j 8,069 i $ 8,680 $ 280 - j 1,069 - j $ 1,348 - Second quarter sales tax collections through June were $802K more than the same quarter in the previous year, resulting in a 21% increase. There was an increase in construction sales tax of $156K over the same quarter last year, or up by 84% as well as an increase in sales tax from other industries of $646K which resulted in a rise of 18 %. As of June 30th, revenue that the City has received from sales tax mitigation totals $566,433, which is 50% of the annual mitigation budget. 7 8 INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's Schedule 1- Sales Tax Actual revenue from sales tax collections received during the second quarter experienced an increase of $655K or 17% above the current original budget. W: \FIN Projects \Sales Tax Inforrnation\2015\Info Memo Sales Tax - 2015 -Q2 2015MEMO (July 2015).docx -- Month -- 2014 2015 Variance [Actual Over (Under) Original Budget] Collect- Original ed Rec'd Actual Budget Actual Amt Jan Mar $ 1,106 $ 1,171 $ 1,280 $ 109 9% Feb Apr 1,081 1,161 1,313 152 13% Mar May 1,321 1,386 1,461 75 5% Q -1 Totals $ 3,508 $ 3,718 $ 4,054 $ 336 9% Apr Jun 1,192 1,252 1,319 67 5% May Jul 1,254 1,287 1,544 257 20% Jun Aug 1,378 1,431 1,762 331 23% Q -2 Totals $ 3,824 $ 3,970 $ 4,625 $ 655 17% Jul Sep 1,395 1,408 - - - Aug Oct 1,388 1,359 - - - Sep Nov 1,431 1,399 - - - Q-3 Totals $ 4,214 $ 4,166 $ - $ - - Oct Dec 1,383 1,286 - - - Nov Jan 1,483 1,354 - - - Dec Feb 1,935 1,871 - - - Q-4 Totals $ 4,801 $ 4,511 $ - 1 $ - - Totals $ 16,347 $ 16,365 $ 8,679 $ 991 - Actual revenue from sales tax collections received during the second quarter experienced an increase of $655K or 17% above the current original budget. W: \FIN Projects \Sales Tax Inforrnation\2015\Info Memo Sales Tax - 2015 -Q2 2015MEMO (July 2015).docx INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change in the first and second quarters in 2014 revenue receipts through the second quarter in 2015. 5500.0oo 5400,000 5300,000 $200,000 $100,000 5- 5(100,000) ChangeYTD by Category* Whol es a l e Tra de, $433,206 Constructi on 5280.254 Transportation/ Warehousing, 54,839 Manufacturing, (517,754) Servi ces, 5440,584 Retail Trade, $116,880 Automotive, 538,371 Miscellaneous, 551,320 The overall construction increase shown above is primarily due to the Construction of Buildings category. Decrease in manufacturing is partially due to the Transportation Equipment Manufacturing category, which shows a decline in gross sales activity. The overall significant increase in the 'Wholesale Trade" category is attributable to the NAICS category 423, 'Wholesale Trade in Durable Goods ". The increase in the "Retail Trade" category is due to increased sales activity in the areas of Building /Material /Garden of $49K and Clothing /Accessories of $70K. Of the $440K increase in the "Services" category, there were combined increases totaling $398K in the areas of: Information, Real Estate /Rental /Leasing, Professional /Scientific/Technology, Health Care /Social Assistance, and Accomodation & Food Services. The miscellaneous category includes activities from agriculture, forestry, fishing and mining /utilities with "Unclassifiable Establishments" showing the most increase of $101K. W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax- 2015 -Q2 2015MEMO (July 2015).docx 9 10 INFORMATIONAL MEMO Page 4 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Wholesale Trade, Durable Goods in the NAICS 423 category continues to have the highest year over year increase at $433,550 due to growth in overeall gross sales. This is followed by an increase of $259,589 in the category of Construction of Buildings. This increase is partially attributable to several construction companies reporting year -to -date sales tax revenue that previously did not have any activity reported in the same period from the previous year as well as an increase in sales activity. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 976,157.44 $ 945,793.31 $ 30,364 3.21% * 448 Clothing and Accessories $ 964,057.75 $ 893,974.06 $ 70,084 7.84% * 423 Wholesale Trade, Durable Goods $ 927,883.60 $ 494,333.38 $ 433,550 87.70% * 722 Food Services, Drinking Places $ 831,770.95 $ 772,504.02 $ 59,267 7.67% " 443 Electronics and Appliances $ 425,364.07 $ 443,994.79 $ (18,631) - 4.20% 236 Construction of Buildings $ 420,510.87 $ 160,922.35 $ 259,589 161.31% * 441 Motor Vehicle and Parts Dealer $ 351,289.96 $ 316,888.73 $ 34,401 10.86% * 444 Building Material and Garden $ 338,638.76 $ 289,121.79 $ 49,517 17.13% 517 Telecommunications $ 327,372.81 $ 241,263.18 $ 86,110 35.69% * 453 Miscellaneous Store Retailers $ 312,000.76 $ 361,795.91 $ (49,795) - 13.76% * Mitigated NAICS Code Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. While the NAICS category for Miscellaneous Store Retailers experienced a year -to -date decrease in sales tax collections of $50K, the NAICS 518 Internet Service Providers category had a 35% decrease in sales activity over the previous year. Schedule III YTD YTD Dollar Group Name Current Prior Diff. Diff. * 453 Miscellaneous Store Retailers $ 312,000.76 $ 361,795.91 $ (49,795) - 13.76% * 443 Electronics and Appliances $ 425,364.07 $ 443,994.79 $ (18,631) -4.20% 336 Transportation Equipment Man $ 48,910.86 $ 61,157.01 $ (12,246) - 20.02% * 442 Furniture and Home Furnishings $ 207,516.22 $ 219,244.84 $ (11,729) -5.35% 611 Educational Services $ 17,303.93 $ 25,135.25 $ (7,831) - 31.16% 518 Internet Service Providers $ 13,030.74 $ 20,236.24 $ (7,206) - 35.61% 238 Specialty Trade Contractors $ 141,265.26 $ 147,477.98 $ (6,213) -4.21% 812 Personal and Laundry Services $ 52,401.06 $ 53,692.90 $ (1,292) -2.41% * 424 Wholesale Trade, Nondurable $ 78,460.15 $ 78,680.04 $ (220) -0.28% * Mitigated NAICS Code W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax - 2015 -Q2 2015MEMO (July 2015).docx INFORMATIONAL MEMO Page 5 The following charts show 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. $2,500,000 $2,400,000 $2,300,000 $2,200,000 $2,100,000 52,000,000 $1,900,000 $1,800,000 51,700,000 $1,600,000 51,500,000 5700,000 5600,000 $500,000 $400,000 $300,000 $200,000 $100,000 5- Retail Q1 Q2 Q3 Wholesale Q4 Q1 Q2 03 5450,000 5400,000 $350,000 5300,000 $250,000 $200,000 $150,000 $100,000 550,000 $- 04 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2010 • 2011 • 2012 • 2013 • 2014 ■ 2015 $1,400,000 -.- - - -. 51,200,000 $1,000,000 - - - -- $800,000 $600,000 $400,000 $200,000 1- 5- $450,000 5400,000 $350,000 $300,000 $250,000 5200,000 $150,000 5100,000 $50,000 $- Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. 01 Q2 Q3 Q4 Services Q1 Q2 Q3 04 Construction 01 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 ■ 2015 W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax- 2015 -Q2 2015MEMO (July 2015).docx • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2010 • 2011 • 2012 • 2013 • 2014 ■ 2015 11 12 INFORMATIONAL MEMO Page 6 Below is Schedule IV which shows quarterly gambling tax earned for the prior year compared to the current year. Schedule IV - Gambling Tax (a) (c) 2015 Quarter 2014 2015 Prorated Earned Actual Actual Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount % Q1 $ 678,358 $ 698,773 $ 615,337 Q2 666,716 679,484 604,777 Q3 678,302 615,286 Q4 698,517 - 633,623 Totals $ 2,721,893 '$ 1,378,257 $ 2,469,024 $ 20,415 12,768 $ 33,183 3% $ 83,436 2% 74,707 $ 158,143 14% 12% Gambling taxes for the 2nd quarter ended June 30th, are $12K or 2% higher than 2014 and $74K or 12% over 2015 budget. Casinos within the City continue to do well. Schedule V shows monthly admissions tax receipts for the 1st quarter prior year compared to the same quarter current year. Schedule V - Admissions Tax (b) (c) 2015 Quarter 2014 2015 Prorated Earned Actual Actual Budget INCREASE (DECREASE) 2015 to 2014 Actuals 2015 Actuals to 2015 Budget Amount % Amount Jan $ 47,314 $ 46,586 $ 53,212 Feb 39,544 42,492 44,473 Mar 48,187 40,167 54,194 Apr 41,559 48,996 46,739 May 52,098 56,418 58,592 June 55,830 66,331 62,789 01 Totals $ 284,532 $ 300,990 $ 320,000 $ (728) -2% $ (6,626) -12% 2,948 7% (1,982) -4% (8,020) -17% (14,026) -26% 7,437 18% 2,257 5% 4,320 8% (2,174) -4% 10,501 19% 3,542 6% $ 16,458 6% $ (22, 634) -6% Admissions tax receipts are at ($16.4K) or 6% above 2014 collections and ($22.6K) or 6% under budget. Receipts from movie theater sales continue to be a primary component of revenue for the admissions tax. (a) (b) (c) 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 through second quarter 2015. W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -02 2015MEMO (July 2015).docx W SALES TAX SUMMARY 2nd Quarter 2015 (Received in March 2015 - August 201 5) NAICS CONSTRUCTION 14 TOTAL 236 Construction of Buildings 415,349 237 Heavy & Civil Construction 55,116 238 Specialty Trade Contractors 348,328 TOTAL CONSTRUCTION $ 818,793 $ Overall Construction Change from Previous Year MANUFACTURING 311 Food Manufacturing 312 Beverage & Tobacco Products 313 Textile Milts 314 Textile Product Mills 315 Apparel Manufacturing _316 Leather & Allied Products_ _ _ _321' _Wood Product Manufacturing- - - - 322' _Paper Manufacturing 323' Printing & Related Support 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 327* Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products _ 333 Machinery Manufacturing_ 334' Com uter & Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg_ 337` _Fumiture& Related Products 339* Miscellaneous Manufacturing • ! TOTAL MANUFACTURING $ Overall Manufacturing Change from Previous Year 14 YTD 160,922 23,096 147,478 331,496 15YTD 420,511 49,974 141,265 $ 611,750 $280,254 14 TOTAL 14 YTD 15 YTD 7,356 2,978 2,699 5,848 2,509 3,476 651 266 59 11,515 5,345 5,444 392 200 422 1 - - 1 - -- 43 2,224 1,253 1,240 23,964 - - 12,254 12,286 25,507 11,776 _ __ 14,317 20 12 8 7,631 3,624 4,428 3,999 1,968 1,510 - - - 4,645 2,322 1,671 3,414 - -- 2,333 -- -1,098 5,649 3,339 1,069 7,571 4,468 1 3,609 2,395 3,945 2844 - -- -1529 -- -2,429 171,683 61,157 43911 12,627 5,182 4,009 19,464 9,155 7,245 320,613 $ 134,065 $ 116,311 ($17,754) TRANSPORTATION & WAREHOUSING 14 TOTAL 14 YTD 15 YTD 481 Air Transportation 7 0 0 482 Rail Transportation 1,162 27 0 484 Truck Transportation 1,647 1,188 920 485 Transit and Ground Passengers 740 448 611 487 Scenic and Sightseeing Tran 1,044 637 687 488 Transportation Support 46,626 18,426 22,698 491 Postal Services 597 230 346 492 Couriers & Messengers _ _ _ _ _ 293 _ _ _ _ 138 215 1 493' Warehousing & Storage 786 345 802 TOTAL TRANSP & WHSING $ 52,903 $ 21,439 $ 26,278 Overall Transportation Change from Previous Year $4,839 WHOLESALE TRADE 423* _WhIsTrade- Durable Goods _424_' Whls Trade-Nondurable Goods 425' Wholesale Electronic Markets WHOLESALE TRADE TOTAL $ Overall Wholesale Change from Previous Year 14 TOTAL 14 YTD 1,447,024 494,333 146,480 78,680 2,934 1,456 1,596,438 $ 574,469 Sales Tax Mitigation NAILS Codes 9/16/2015 15YTD 927,884 - - 78,460 -- -1,331 $ 1,007,675 $433.206 YTD % Diff 161.3% 116.4% -4.2% 84.5% YTD % Diff -9.4% 38.5% -77.8% 1.8% 111.2% 69492% -1.0% _ _ 1 0.3% 'I 21.6% -28.2% 28.2% 22.2% - 23.3% - 28.0% 2. -53.0% -68.0% -100.0% 64_8% 58.9% - 20.0% -22.6% _ 20.9% •13.2% YTD % Diff 0.0% - 100.0% -22.5% 36.2% 0.0% 23.2% 0.0% 55.3% 132.5% 22.6% YTD % Diff , 87.7% I -0.3% ! -8.6% 1 75.4% YTD NAICS AUTOMOTIVE 14 TOTAL 14 YTD 15 YTD % Diff i._441*__ Motor Vehicle & Parts Dealer 675,796 316,889 351,290 10.9 %__ I ! 447* Gasoline Stations - - - - 88,507 - - - - - 39,903 43,873 - 9.9% I TOTAL AUTOMOTIVE $ 764,303 $ 356,792 $ 395,163 Overall Automotive Change from Previous Year $38,371 10.8% NAICS RETAIL TRADE 14 TOTAL 14 YTD 15 YTD % Diff 442' Furniture & Home Fumishir 9s- - - - 449,665 _ _ 219_245 _ _ _207,516_ _ -5.3% 443`_ Electronics & Appliances - - _ _ _ 982,899 443,995 425_364 74-10/,---1 _ 444` Buildup Material & Garden 600,553 289 122 338_639 17.1 % ! _44_5`___Foo_d & Beverage Stores - _ - - - i 224,707 _ _ _99_105 _ _ 103_368_ _ _4.3% _ • 446` Health & Personal Care 256,077 119,838 - 129,431 8.0% J 448 Clothing & Accessories 2,013,040 893,974 964_058_ 7.8% J _ 451'_ - Sporting Goods_ Hobby_Books 581,195 255,095 264244 3.6% 4 452` General Merchandise Stores 2,137,244 _ 945,793 976,157 3.2% I 453'_ Miscellaneous Store Retailers 744,802 361 _796 312,001 - 13.8% 1 454* Nonstore Retailers' 184,477 80,372 104,437 29.9% I TOTAL RETAIL TRADE $ 8,174,659 $ 3,708,335 $ 3,825,215 Overall General Retail Change from Previous Year $116,880 3.2% SERVICES 51X Information 52X Finance & Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 14 TOTAL 14 YTD 15 YTD 652,905 330,622 447,813 79,451 37,469 45,685 477,729 203,148 262,785 369,819 167,047 223,951 126,608 61,770 62,002 49,998 25,135 17,304 137,974 38,420 115,819 YTD % Diff 35.4% 21.9% 29.4% 34.1% 0.4% -31.2% 201.5% __71X__ Arts &Entertainment _ _ _ _ _ _ 145,867 - _ 69_653__ _ 106.439 ___ 52.8 %__ I 72X' Accommodation & Food Svcs 2,152,981 1,030,951 1,117,897 8.4% I 81X Other Services 238,486 109,856 112,633 2.5% 92X Public Administration 65,277 32,797 35,126 7.1% TOTAL SERVICES $ 4,497,094 $ 2,106,869 $ 2,547,453 Overall Services Change from Previous Year $440,584 20.9% MISCELLANEOUS 14 TOTAL 000 Unknown 49,474 111 -115 Agriculture, Forestry, Fishing 326 211 -221 Mining & Utilities 567 999 Unclassifiable Establishments 72,257 MISCELLANEOUS TOTAL $ 122,624 $ Overall Miscellaneous Change from Previous Year 14YTD 49,474 244 364 49,175 99,257 $ 14 TOTAL 14 YTD GRAND TOTALS $16,347,426 $7,332,723 Grand Total Change from Previous Year Grand Total Change from Previous Year • Without New Construction YTD 15YTD %Dill 0 - 100.0% 144 -41.1% 191 -47.6% 150,242 205.5% 150,577 $51,320 51.7% YTD 15YTO %Diff $8,680,424 $1,347,701 18.38% $1,067,447 1525% 1UK Sales Tax Rpt Q2 2015.xls