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Home My WebLink AboutFS 2016-01-20 Item 2B - Report - 2015 3rd Quarter Sales Tax and Miscellaneous Revenue ReportTO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Mayor Ekberg Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Lily Jue, Fiscal Coordinator DATE: January 20, 2016 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 3rd Quarter 2015 Schedule I - Sales Tax in $1,000's Third quarter sales tax collections through September were $702K more than the same quarter in the previous year, resulting in a 17% increase. There was an increase in construction sales tax of $94K over the same quarter last year, or up by 37% as well as an increase in sales tax from other industries of $608K which resulted in a rise of 15 %. 19 2014 Actual 2015 Actual YOY Change Other -- Month -- ; Other ; Total ; Other ; Total Construction ; Industries Total Collect- Construca Construct 1 I I ed Reed lion Industries ;Industries: tion Amount % 1 Amount % 1 Amount % Jan Mar $ 57 i $ 1,049 I $ 1,106 $ 85 i $ 1,195 i $ 1,280 $ 28 49 %i $ 146 14 %1 $ 174 16% Feb Apr 34 i 1,047 i 1,081 86 I 1,227 I 1,313 52 153 %1 180 17 %i 232 21% Mar May 56 i 1,265 i 1,321 99 1 1,362 I 1,461 43 78 %i 97 8 %1 140 11% 0 -1 Totals $ 147 i 3,361 : $ 3,508 $ 270 3,784 i $ 4,054 $ 123 84 %f 423 13 %:1 $ 546 16% Apr Jun 571 1,1351 1,192 109, 1,210! 1,319 52 91 %1 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 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 95 I 1,653 i 1,748 15 19 %1 338 26 %1 353 25% Aug Oct 871 1,3011 1,388 1331 1,4631 1,596 46 52 %i 162 12%j 208 15% Sep Nov 91 i 1,340 i 1,431 124 i 1,448 ; 1,572 33 37 %{ 108 8 %i 141 10% 0-3 Totals $ 258 1 3,956 1: $ 4,214 $ 352 I 4,564 1 $ 4,916 $ 94 37%� 608 15 %i $ 702 17% Oct Dec 64 1 1,319 i 1,383 I 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 $ - - ! $ - $ - - I - - ! $ - Totals $ 819 i 15,528 i $ 16,347 $ 964 i 12,632 i $ 13,596 $ 374 - I 1,676 - i $ 2,050 - Third quarter sales tax collections through September were $702K more than the same quarter in the previous year, resulting in a 17% increase. There was an increase in construction sales tax of $94K over the same quarter last year, or up by 37% as well as an increase in sales tax from other industries of $608K which resulted in a rise of 15 %. 19 20 INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's Schedule I - Sales Tax Actual revenue from sales tax collections received during the third quarter experienced an increase of $151K or 3% above the current amended budget, and a cumulative increase of $540K. W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax - 2015 -Q3 2015MEMO (Dec 2015).docx 21 2014 2015 Variance [Actual Over (Under),.` -- Month -- August November Amended Budget] Collect- Original Amended Amended Rec'd Actual Budget Budget Budget Actual Amt cyo Jan Mar $ 1,106 $ 1,107 $ 1,136 $ 1,251 $ 1,280 $ 29 2% Feb Apr 1,081 1,082 1,110 1,223 1,313 90 7% Mar May 1,321 1,322 1,357 1,494 1,462 (32) -2% Q -1 Totals $ 3,508 $ 3,512 $ 3,602 $ 3,967 $ 4,054 $ 87 2% Apr Jun 1,192 1,193 1,224 1,348 1,319 (29) -2% May Jul 1,254 1,255 1,288 1,418 1,544 126 9% Jun Aug 1,378 1,380 1,385 1,558 1,762 204 13% Q -2 Totals $ 3,824 $ 3,828 $ 3,897 $ 4,325 $ 4,626 $ 301 7% Jul Sep 1,395 1,397 1,433 1,578 1,748 170 11% Aug Oct 1,388 1,390 1,425 1,570 1,596 26 2% Sep Nov 1,431 1,433 1,470 1,618 1,573 (45) -3% Q -3 Totals $ 4,214 $ 4,219 $ 4,327 $ 4,766 $ 4,917 $ 151 3% Oct Dec 1,383 1,385 1,420 1,564 - - - Nov Jan 1,483 1,485 1,523 1,677 - - - Dec Feb 1,935 1,937 1,987 2,188 - - - Q -4 Totals $ 4,801 $ 4,806 $ 4,930 $ 5,430 $ - $ - - Totals $ 16,347 $ 16,365 $ 16,787 $ 18,487 $ 13,597 $ 540 - Actual revenue from sales tax collections received during the third quarter experienced an increase of $151K or 3% above the current amended budget, and a cumulative increase of $540K. W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax - 2015 -Q3 2015MEMO (Dec 2015).docx 21 22 INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change between the first three quarters of 2014 revenue receipts through third quarter in 2015. $1,200,000 $1,000,000 5800,000 $ 600,000 $400,000 $200,000 - -- % Change YTD by Category* Retail Trade, $309,103 ■ Whol es ale Trade, $503,235 Construction $373,730 1 Manufacturing, Transportation/ ($21,505) Warehousing, $10,708 Automotive, ■ Services, $637,640 Miscellaneous, $175,797 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 Electronics & Appliances of $70K, Building Material & Garden of $67K, Clothing & Accessories of $115K and General Merchandise Stores of $57K. Of the $637K rise in the "Services" category, there were combined increases totaling $643K in the areas of: Information, Real Estate /Rental /Leasing, Professional /Scientific/Technology, Health Care /Social Assistance, Arts & Entertainment and Accomodation & Food Services. The miscellaneous category include activities from agriculture, forestry, fishing and mining /utilities with "Unclassifiable Establishments" showing the most increase of $225K. W: \FIN Projects \Sales Tax Information \ 2015 \Info Memo Sales Tax - 2015 -Q3 2015MEMO (Dec 2015).docx 23 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 $497,842 due to growth in overeall gross sales. This is followed by an increase of $354,936 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 $ 1,566,907.79 $ 1,510,027.19 $ 56,881 3.77% 448 Clothing and Accessories $ 1,529,471.33 $ 1,414,440.27 $ 115,031 8.13% 423 Wholesale Trade, Durable Goods $ 1,385,518.48 $ 887,676.53 $ 497,842 56.08% 722 Food Services, Drinking Places $ 1,271,369.58 $ 1,179,090.04 $ 92,280 7.83% 443 Electronics and Appliances $ 716,514.73 $ 646,277.98 $ 70,237 10.87% 236 Construction of Buildings $ 643,970.16 $ 289,034.07 $ 354,936 122.80% 441 Motor Vehicle and Parts Dealer $ 545,206.55 $ 485,857.32 $ 59,349 12.22% 444 Building Material and Garden $ 524,684.66 $ 457,637.71 $ 67,047 14.65% 721 Accommodation $ 495,737.51 $ 443,902.43 $ 51,835 11.68% 517 Telecommunications $ 478,230.68 $ 354,626.50 $ 123,604 34.85% 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 $82K, the NAICS 611 Educational Services category had a 46% decrease in sales activity over the previous year. Schedule III YTD YTD Dollar Group Name Current Prior Diff. Diff. 453 Miscellaneous Store Retailers $ 457,486.04 $ 539,252.19 $ (81,766) - 15.16% 531 Real Estate $ 22,227.30 $ 40,213.06 $ (17,986) - 44.73% 611 Educational Services $ 20,759.18 $ 38,647.52 $ (17,888) - 46.29% 238 Specialty Trade Contractors $ 246,394.17 $ 262,554.84 $ (16,161) -6.16% 336 Transportation Equipment Man $ 91,886.39 $ 108,004.54 $ (16,118) - 14.92% 442 Furniture and Home Furnishings $ 318,377.69 $ 331,969.54 $ (13,592) -4.09% 511 Publishing Industries $ 50,508.40 $ 58,570.65 $ (8,062) - 13.77% 518 Internet Service Providers $ 21,951.73 $ 27,865.91 $ (5,914) - 21.22% 522 Credit Intermediation $ 55,074.54 $ 59,227.78 $ (4,153) -7.01% 339 Miscellaneous Manufacturing $ 11,523.80 $ 14,524.00 $ (3,000) - 20.66% W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax - 2015 -03 2015MEMO (Dec 2015).docx 25 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 $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 0 2012 ■ 2013 ■ 2014 02015 $700,000 $600,000 - $500,000 -` $400,000 $300,000 $200,000 $100,000 $- Wholesale 01 Q2 Q3 Q4 ■ 2010 112011 ® 2012 ■ 2013 ■ 2014 02015 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,W0 $- $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Services 01 Q2 Q3 04 11 2010 X2011 ■ 2012 12013 ■ 2014 2015 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Construction 01 Q2 Q3 Q4 ▪ 2010 I 201 0 2012 ■ 2013 ■ 2014 02015 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. Q1 Q2 Q3 Q4 W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -Q3 2015MEMO (Dec 2015).docx 112010 ■ 2011 ■ 2012 ■ 2013 ■ 2014 2 2015 27 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) Quarter 2014 Earned Actual (c) 2015 Actual 2015 Prorated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 678,358 Q2 666,716 Q3 678,302 Q4 698,517 $ 698,773 679,484 677,923 $ 615,337 604,777 615,286 633,623 $ 20,415 12,768 (379) 3% $ 2% 0% 83,436 74,707 62,637 14% 12% 10% Totals $ 2,721,893 $ 2,056,180 $ 2,469,024 $ 32,803 - $ 220,780 Gambling taxes for the 3rd quarter ended September 30th, are at targeted levels compared with 2014 and $62K or 10% over 2015 budget. Casinos within the City continue to do well. Schedule V shows monthly admissions tax receipts for the prior year and current year to date. Schedule V - Admissions Tax (b) Quarter Earned (c) 2014 2015 Actual Actual 2015 Prorated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount Amount 0/O Q1 Q2 Q3 YTD Q4 Totals $ 135,045 $ 129,245 $ 160,000 149,487 171,745 160,000 135,919 159,808 160,000 420,451 460,798 480,000 139,163 - 160,000 $ 559,614 $ 460,798 $ 640,000 $ (5,800) 22,258 23,889 $ 40,347 (30, 755) 11,745 (192) (19,202) -19% 7% 0% -4% - $ (19,202) Admissions tax receipts are 18% above as indicated for the current third quarter total. Year -to- date collections are at the anticipated receipt levels. Compared to budget, this is a decrease of $19,202.00, or 4% lower than the prorated budget year -to -date. (a) (b) (e) 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. 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