HomeMy WebLinkAboutFS 2016-04-05 Item 2C - Report - 2015 4th 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: Sandy Garrett, Senior Fiscal Coordinator
DATE: April 05, 2016
SUBJECT: Sales Tax and Miscellaneous Revenue Report - 4th Quarter 2015
Schedule I - Sales Tax
in $1,000's
Fourth quarter sales tax collections were $2,317K more than for the same quarter in the
previous year, resulting in a 14% increase. There was an increase in construction sales tax of
$436K over the same quarter last year, or up by 53% as well as an increase in sales tax from
other industries of $1,881K which resulted in a rise of 12 %.
25
2014 Actual
2015 Actual
YOY Change
' Other
-- Month --
: Other :
Total
: Other :
Total
Construction : Industries
:
Total
Collect-
Construe I
Construe I
i
i
ed
Rec'd
tion j Industries �
tion j Industries j
1
Amount
% Amount
%
Amount
Jan
Mar
$ 57 j $ 1,049 j $ 1,106
$ 85 i $ 1,195 j
$ 1,280
$ 28
49 %j $ 146
14 %j $ 174
16%
Feb
Apr
34 j
1,047 j
1,081
86 j
1,227 j
1,313
52
153 %j
180
17 %i
232
21%
Mar
May
56 j
1,265 j
1,321
99 j
1,362 j
1,461
43
78 %j
97
8 %j
140
11%
Q -1 Totals
$ 147
3,361
$ 3,508
$ 270
3,784
$ 4,054
$ 123
84 %
423
13 %
$ 546
16%
Apr
Jun
57
1,135
1,192
109 �
1,210
1,319
52
91 %�
75
7 %�
127
11%
May
Jul
i
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 !
1,315 !
1,395
95 !
1,653 !
1,748
15
19 %!
338
26 %!
353
25%
Aug
Oct
87 j
1,301 j
1,388
133 j
1,463 j
1,596
46
52 %j
162
12 %j
208
15%
Sep
Nov
91 j
1,340 j
1,431
124 j
1,448 j
1,572
33
37 %j
108
8 %j
141
10%
Q -3 Totals
$ 258 }
3,956
$ 4,214
$ 352 {
4,564
$ 4,916
$ 94
37%
608
15%
$ 702
17%
Oct
Dec
64
1,319 �
1,383
93 i
1,414 i
1,507
29
45 %�
95
7 %:
124
9%
Nov
Jan
i
87 ;
1,396 ;
1,483
98 ;
1,370 ;
1,468
11
13 %;
(26)
-2 %;
(15)
-1%
Dec
Feb
78 !
1,857 !
1,935
100 !
1,992 !
2,092
22
28 %;
136
7 %;
158
8%
Q -4 Totals
$ 229 !
4,572 !
$ 4,801
$ 291 !
4,776 !
$ 5,067
$ 62
27 %!
205
4 %!
267
6%
Totals
$ 819 j
15,528 j $ 16,347
$ 1,255 j
17,409 j
$ 18,664
$ 436
53%i
1,881
12 %i $ 2,317
14%
Fourth quarter sales tax collections were $2,317K more than for the same quarter in the
previous year, resulting in a 14% increase. There was an increase in construction sales tax of
$436K over the same quarter last year, or up by 53% as well as an increase in sales tax from
other industries of $1,881K which resulted in a rise of 12 %.
25
26
INFORMATIONAL MEMO
Page 2
Budget to Actual - Sales Tax in $1,000's
Schedule I - Sales Tax
Actual revenue from sales tax collections received through the fourth quarter exceeded
amended budget estimates by $177K or one percent.
W: \FIN Projects \Sales Tax Information12015\Info Memo Sales Tax - 2015 -Q4 2015MEMO (Apr 2016).docx
27
2014
2015
Variance [Actual
Over (Under)
-- Month --
August
November
Amended Budget]
Collect-
Original
Amended
Amended
ed
Rec'd
Actual
Budget
Budget
Budget
Actual
Amt
%
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
1,572
(46)
-3%
Q -3 Totals
$ 4,214
$ 4,219
$ 4,327
$ 4,766
$ 4,916
$ 151
3%
Oct
Dec
1,383
1,385
1,420
1,564
1,507
(57)
-4%
Nov
Jan
1,483
1,485
1,523
1,677
1,469
(208)
-12%
Dec
Feb
1,935
1,937
1,987
2,188
2,091
(97)
-4%
Q -4 Totals
$ 4,801
$ 4,806
$ 4,930
$ 5,430
$ 5,067
$ (363)
-7%
Totals $ 16,347 $ 16,365
$ 16,787
$ 18,487
$ 18,664 $ 177
1%
Actual revenue from sales tax collections received through the fourth quarter exceeded
amended budget estimates by $177K or one percent.
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27
1)2
INFORMATIONAL MEMO
Page 3
Below is a graph of sales tax collections by type of industry showing overall change between the
2014 and 2015 revenue receipts.
$1,000,000
$800,000
$600,000
$400,000
$200,000
$(200,000)
Change YTD by Category*
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 $68K, Building
Material & Garden of $82K, Clothing & Accessories of $144K and General Merchandise Stores
of $69K.
Of the $895K rise in the "Services" category, there were combined increases totaling $718
K 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 includes activities from agriculture, forestry, fishing and
mining /utilities with "Unclassifiable Establishments" showing the most increase of $215K.
W: \FIN Projects \Sales Tax Information12015\Info Memo Sales Tax - 2015 -Q4 2015MEMO (Apr 2016).docx
29
Services,
$894,634
Construction
$436,029
Wholesale
$421,228
Trade,
Retail Trade,
$354,870
Miscellaneous,
$181,355
Transportation/
Warehousing,
$6,015
Automotive,
$60,890
Manufacturing,
($38,634)
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 $68K, Building
Material & Garden of $82K, Clothing & Accessories of $144K and General Merchandise Stores
of $69K.
Of the $895K rise in the "Services" category, there were combined increases totaling $718
K 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 includes activities from agriculture, forestry, fishing and
mining /utilities with "Unclassifiable Establishments" showing the most increase of $215K.
W: \FIN Projects \Sales Tax Information12015\Info Memo Sales Tax - 2015 -Q4 2015MEMO (Apr 2016).docx
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30
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 $409,393 due to growth in overeall gross sales. This is followed by an increase of
$401,259 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 $ 2,206,290.03 $ 2,137,244.03 $ 69,046 3.23%
448 Clothing and Accessories $ 2,157,481.33 $ 2,013,039.55 $ 144,442 7.18%
423 Wholesale Trade, Durable Goods $ 1,856,416.74 $ 1,447,023.94 $ 409,393 28.29%
722 Food Services, Drinking Places $ 1,614,072.00 $ 1,590,851.00 $ 23,221 1.46%
443 Electronics and Appliances $ 1,051,229.05 $ 982,899.32 $ 68,330 6.95%
236 Construction of Buildings $ 816,608.08 $ 415,348.80 $ 401,259 96.61%
441 Motor Vehicle and Parts Dealer $ 736,245.63 $ 675,796.39 $ 60,449 8.94%
444 Building Material and Garden $ 683,037.47 $ 600,553.48 $ 82,484 13.73%
721 Accommodation $ 598,415.00 $ 562,130.00 $ 36,285 6.45%
517 Telecommunications $ 622,144.00 $ 486,752.00 $ 135,392 27.82%
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 $89K, the NAICS 611
Educational Services had a 53.14% decrease in sales activity over the previous year.
Schedule III
YTD YTD Dollar
Group Name Current Prior Diff. Diff.
453 Miscellaneous Store Retailers $ 655,645.59 $ 744,801.92 $ (89,156) - 11.97%
336 Transportation Equipment Man $ 129,311.59 $ 171,683.13 $ (42,372) - 24.68%
611 Educational Services $ 23,429.11 $ 49,997.91 $ (26,569) - 53.14%
531 Real Estate $ 39,047.00 $ 59,351.00 $ (20,304) - 34.21%
442 Furniture and Home Furnishings $ 435,187.01 $ 449,664.51 $ (14,478) -3.22%
511 Publishing Industries $ 57,656.00 $ 71,024.00 $ (13,368) - 18.82%
238 Administrative and Support Svc $ 111,265.00 $ 121,823.00 $ (10,558) - 8.67%
522 Miscellaneous Manufacturing $ 14,924.00 $ 19,464.00 $ (4,540) - 23.33%
518 Personal and Laundry Services $ 111,356.00 $ 114,835.00 $ (3,479) -3.03%
339 Food and Beverage Stores $ 222,022.00 $ 224,706.00 $ (2,684) - 1.19%
W: \FIN Projects \Sales Tax Information12015\Info Memo Sales Tax - 2015 -04 2015MEMO (Apr 2016).docx
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32
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.
$2,600,000
$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
Q1
Q2
Q3
Q4
• 2010
• 2011
• 2012
• 2013
• 2014
• 2015
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
Wholesale
I'1 ' Ir 1
1 1 1 1
01 Q2 Q3 Q4
• 2010
• 2011
12012
• 2013
• 2014
• 2015
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Services
wl Er- EP
p 1- r r
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
Q1
Q2
03
Q4
• 2010
• 2011
• 2012
■ 2013
• 2014
• 2015
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
Construction
Q1 Q2 Q3 Q4
• 2010
II 2011
■ 2012
• 2013
• 2014
12015
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
Other -Mfg. Trnsp /Wrhsng,
Automotive, & Misc.
01
Q2
Q3
Q4
• 2010
• 2011
• 2012
• 2013
• 2014
• 2015
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33
34
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
Amount
BUDGET VARIANCE
Amount
Q1 $ 678,358
Q2 666,716
Q3 678,302
04 698,517
Totals $ 2,721,893
$ 698,773
679,484
677,923
743,365
$ 2,799,545
$ 615,337
604,777
615,286
633,623
$ 2,469,024
$ 20,415
12,768
(379)
44,848
$ 77,651
3% $ 83,436
2% 74,707
0% 62,637
6% 109,742
3% 330,521
14%
12%
10%
17%
13%
Gambling taxes for 4th quarter,2015 are 3% higher than as compared with 2014 and are $109K
or 17% 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
YEAR OVER YEAR
Amount
(DECREASE)
BUDGET VARIANCE
Amount
Q1
Q2
Q3
Q4
Totals
$ 135,045 $
149,487
135,919
139,163
$ 559,614 $
129,245 $ 160,000
171,745 160,000
159,808 160,000
166,452 160,000
627,250 $ 640,000
$ (5,800)
22,258
23,889
27,289
$ 67,636
-4%
15%
18%
20%
12%
$ (30,755)
11,745
(192)
6,452
$ (12,750)
-19%
7%
0%
4%
-2%
There is an increase of 20% in admissions tax receipts during fourth quarter as compared to the
same period in 2014. Fourth quarter collections are 4% higher than anticipated. Total year to
date receipts for 2015 reflect a decrease of $12,750 compared to the budgeted amount.
(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 Information12015\Info Memo Sales Tax - 2015 -Q4 2015MEMO (Apr 2016).docx
35
36
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(o C L.LiCr O Co
TO o w Q o 2
a) 0.6 '= —
0 (0 06 ao)
0 a) w o c
(o C U Q = Co
(o .0 _C 0 L 0) . _ 0)
E
E co E a) ca L _ cn
r N CO d- L() Co — (-NJ co d- LC) (0 1— r N co d- LS) CO I- 0)
N N N N N N M Cr) M CO CO CO CO CO
CO Cr) CO Cr) CO CO CO CO CO CO CO CO CO CO CO CO M CO CO CO CO
CO
N
M
L
En- CD
CO 0
M
CL
E
CD
U
IC)
z
I-
u_
J
H
O
H
o) p
o
EA-
p
LL')
'Cr
O
1•
O
d'
d`
TOTAL SERVICES
1- 0
p
LC)
p
H
d'
TRANSPORTATION & WAREHOUSING
0
N
co cys Lf)
co LC)
p
H
J
1-
O
1—
MISCELLANEOUS
OO
CO
M
0)
LS)
ti
0)
N
CO dr CO
M 0) Cr)
CO Cr) rs
Lf) I�
r CO
N
d CO r- ti
1- N CO LC)
d- CO r- N-
I` N 0 LC)
d co LC) N
0)
ti
z7)
O
L N E
V) _c
LL N
s
as
o -°) w
a) D as
c : 06
0 . 0) N
C U C co
) - -E 0
c D <2 D
L")
O N 0)
N
O 5- 5- 0)
0)
N
o ° o
O Ln
O CD O
cM
M
N
O
LC)
O CO CO O CO LC) CO
N N OD 0) Lf) I` LC)
CO Lf) CO CO O 0) N
N r r CO d'
I� N ti O d CO r,- CO CO
CO 4 d' d' N 0) 0) CO
r CO 1� O CO LC) N r -
r r r CO
I- N ti O d' CO I- CO CO
CO d d' N 0) 0) CO
r C O N- O CO L0 N I-
r r r (0
a)
0)
C (0
O I-
O a) (o
C O O Q O
C O co C o �
0 E , co u)
o (1)
_ p 0- O -() 0 0 cos
o Q c -� .
Q (o s= s= � a) °�
= co (o O cn
Q O
U t
H ~ 0 = N
L-
..., N u) C
2 �n ao U co
N Lf) 1-- O r N CO
CO CO CO OD 00 CO 0) 0) 0)
d' 4 d' d' 4 4 d' d d-
Chi
p
Li')
d•
N
CO
N
N
r
co) CC
CO 0
E
0
403-
a)
0
a)
0)
C)
O
MISCELLANEOUS TOTAL
co co
CO' Cp
LC) fyzy
O
C".■1
LC)
1- 0
p
Lf)
1-
1—
d•
J
1-
H
O
1 -
WHOLESALE TRADE
O
N
p
H
J
1-
O
1-
T
r
00
Cr)
CO
CO
00
6R
CO
N
1-
d
CO
CO
N
1-.
d•
M
CO
EA
GRAND TOTALS
0 0
r
cO
ti ti
N Cr)
CO CO N
LC) LO
CO
N CO co
O d' 0)
I� O N
d d'
- r
00
M
d•
CO
O
LC)
r
Whls Trade - Durable Goods
Whls Trade - Nondurable Goods
Wholesale Electronic Markets
CO d- L()
04 CV CV
d' d' d'
WHOLESALE TRADE TOTAL
37
TUK Sales Tax Rpt Q4- 2015.xls
0
O
0
0