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Home My WebLink AboutFIN 2017-06-20 Item 2D - Report - 2017 1st Quarter Sales Tax and Miscellaneous RevenueTO: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Mayor Ekberg Finance Committee FROM: Peggy McCarthy, Finance Director BY: Lily Jue, Fiscal Coordinator DATE: June 20, 2017 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 1st Quarter 2017 Schedule I • Sales Tax in $1,000's First quarter sales tax collections increased by approximately $127K, or 3% when compared with the same period in 2016. There was an increase in construction sales tax of $25K over the same quarter last year, or up by 8% as well as an increase in sales tax from other industries of $102K which resulted in a rise of 3 %. 29 2016 Actual 2017 Actual YOY Change Other -- Month -- . Other : Total Other : Total Construction : Industries ! Total Collect- Construc -! ! Construc- ed Recd tion Industries tion Industries Amount % Amount % Amount % Jan Mar $ 99 $ 1,190 $ 1,289 $ 123 $ 1,149 $ 1,272 $ 24 24% $ (41) -3 %i $ (17) -1% Feb Apr 97 ; 1,231 1 1,328 83 1,123 ; 1,206 (14) -14 %; (108) -9 %; (122) -9% Mar May 105 1,413 i 1,518 120 1,664 1,784 15 14% 251 18% 266 18% 0 -1 Totals $ 301 3,834 $ 4,135 $ 326 3,936 $ 4,262 $ 25 8% 102 3% $ 127 3% Apr Jun 105 i 1,336 i 1,440 - I - i - - - - May Jul 119 i 1,361 i 1,480 - - i - - i - i - Jun Aug 139 i 1,553 i 1,692 - - - - - - Q-2 Totals $ 362 ! 4,250 ! $ 4,612 $ - - $ $ - -i - -i $ Jul Sep 109 ! 1,428 ! 1,537 - - - - Aug Oct 111 ! 1,438 ! 1,549 - - - - Sep Nov 115 : 1,444 : 1,559 - Q -3 Totals $ 335 : 4,310 : $ 4,645 $ - $ $ $ Oct Dec 143 i 1,263 i 1,406 - - - - - - Nov Jan 126 1,368 1,494 - - - - - - Dec Feb 118 ; 1,852 ; 1,970 - - - - i - - Q -4 Totals $ 386 ; 4,484 ; $ 4,870 $ - - $ - $ - - -i $ - Totals $ 1,385 i 16,878 i $ 18,262 $ 326 1 3,936 i $ 4,262 $ 25 102 i $ 127 First quarter sales tax collections increased by approximately $127K, or 3% when compared with the same period in 2016. There was an increase in construction sales tax of $25K over the same quarter last year, or up by 8% as well as an increase in sales tax from other industries of $102K which resulted in a rise of 3 %. 29 30 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 first quarter is less than anticipated by $120K, or (3 %) from budgeted estimates. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx -- 2016 2017 Allocated variance [Actual Over (Under) Month -- Actual Budget Actual Original Collect- ed Rec'd Amt Jan Mar $ 1,289 $ 1,366 $ 1,272 (94) -7% Feb Apr 1,328 $ 1,407 1,206 (201) -14% Mar May 1,518 $ 1,609 1,784 175 11% Q-1 Totals $ 4,135 $ 4,382 $ 4,262 $ (120) -3% Apr Jun 1,440 $ 1,526 - - - May Jul 1,480 $ 1,568 - - - Jun Aug 1,692 $ 1,793 - - - Q-2 Totals $ 4,612 r $ 4,887 $ - . $ - - Jul Sep 1,537 $ 1,629 - - - Aug Oct 1,549 $ 1,642 - - - Sep Nov 1,559 $ 1,652 - - - Q-3 Totals $ 4,645 �$ 4,923 $ - $ - - Oct Dec 1,406 $ 1,490 - - - Nov Jan 1,494 $ 1,583 - - - Dec Feb 1,970 $ 2,089 - - - Q-4 Totals $ 4,870 $ 5,162 $ - $ - - Totals $ 18,262 $ 19,352 $ 4,262 $ (120) Actual revenue from sales tax collections received through the first quarter is less than anticipated by $120K, or (3 %) from budgeted estimates. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing annual change in revenue receipts from 2016 to 2017. $200,000 $150,000 $100,000 $50,000 $(50,000) $(100,000) % Change YTD by Category* Miscellaneous Total Construction was up nearly $25K, or 8.3% for first quarter. All three categories of Construction which includes Construction of Buildings, Heavy & Civil Construction, and Specialty Trade Contractors experienced increased sales activity of $13K, $3K, and $8K. Overall Manufacturing is down by $16K, or (24 %) due to a decrease in sales activity for transportation equipment manufacturing compared to 2016. Total Transportation & Warehousing remained fairly stable with a slight increase of 2 %. The overall decline of $53K, or (17 %) in the Wholesale Trade category is mostly attributable to Wholesale Trade in Durable Goods which is down 19% from 2016 to 2017. The Automotive industry had a change of nearly $18K, or up by 10% due primarily to an increase in sales activity in the category for Motor Vehicle & Parts Dealers. The slight decrease of $24K (1%) in the Retail Trade category is due primarily to lower than normal sales activity being reported in the categories of Furniture & Home Furnishings by $11K, or (10 %) and in Sporting Goods /Hobby /Books by $15K, or (12 %). The Services industry remains relatively stable with just a slight decrease of $9K, or down by (1%). The categories for Arts & Entertainment, Other Services and Public Administration show positive changes while categories such as Finance & Insurance and Health Care Social Assistance are down. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx 31 $185,824 Construction 1410 Transportation /Warehousing $333 Automotive $17,684 ■ Retail Trade $(23,786) Manufacturing $(16,387) Services 9,382 $(9,382) Wholesale Trade $(52,802) Total Construction was up nearly $25K, or 8.3% for first quarter. All three categories of Construction which includes Construction of Buildings, Heavy & Civil Construction, and Specialty Trade Contractors experienced increased sales activity of $13K, $3K, and $8K. Overall Manufacturing is down by $16K, or (24 %) due to a decrease in sales activity for transportation equipment manufacturing compared to 2016. Total Transportation & Warehousing remained fairly stable with a slight increase of 2 %. The overall decline of $53K, or (17 %) in the Wholesale Trade category is mostly attributable to Wholesale Trade in Durable Goods which is down 19% from 2016 to 2017. The Automotive industry had a change of nearly $18K, or up by 10% due primarily to an increase in sales activity in the category for Motor Vehicle & Parts Dealers. The slight decrease of $24K (1%) in the Retail Trade category is due primarily to lower than normal sales activity being reported in the categories of Furniture & Home Furnishings by $11K, or (10 %) and in Sporting Goods /Hobby /Books by $15K, or (12 %). The Services industry remains relatively stable with just a slight decrease of $9K, or down by (1%). The categories for Arts & Entertainment, Other Services and Public Administration show positive changes while categories such as Finance & Insurance and Health Care Social Assistance are down. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx 31 32 INFORMATIONAL MEMO Page 4 The miscellaneous category increased during first quarter due primarily to the annual use tax filings in the Nonclassifiable Establishments related to artwork of $268K, or up by 226 %. Schedule II shows the year -to -date sales tax from the top ten industry classifications. Nonclassifiable Establishments in the NAICS 999 category has the highest year over year increase at $185,886 due to the annual use tax filings for related artwork. This is followed by an increase of $17,959 in the category of Motor Vehicle & Parts Dealer, then Food Services /Drinking Places with an increase of $15,273 and Construction of Buildings with an increase of $13,377 during the first quarter due to overall increases in reported sales activity. Schedule II YTD YTD Dollar % Group Name Current Prior Diff. Diff. 452 General Merchandise Stores $ 453,426.13 $ 471,695.31 $ (18,269) - 3.87% 722 Food Services, Drinking Places $ 436,557.46 $ 421,284.20 $ 15,273 3.63% 448 Clothing and Accessories $ 420,320.93 $ 431,108.89 $ (10,788) -2.50% 443 Electronics and Appliances $ 270,983.92 $ 262,019.04 $ 8,965 3.42% 999 Nonclassifiable Establishments $ 268,239.78 $ 82,353.47 $ 185,886 225.72% 423 Wholesale Trade, Durable Goods $ 218,915.59 $ 271,608.40 $ (52,693) - 19.40% 236 Construction of Buildings $ 184,265.70 $ 170,888.91 $ 13,377 7.83% 441 Motor Vehicle and Parts Dealer $ 171,775.13 $ 153,815.64 $ 17,959 11.68% 453 Miscellaneous Store Retailers $ 167,656.65 $ 165,225.23 $ 2,431 1.47% 444 Building Material and Garden $ 160,412.38 $ 152,805.31 $ 7,607 4.98% Schedule III shows the ten largest declines in sales tax revenue for industries collected year -to- date. While the NAICS category for Wholesale Trade & Durable Goods experienced a current quarter decrease in sales tax collections of $53K, the NAICS category 336 Transportation Equipment Manufacturing experienced a 64.5% decrease in sales activity over the previous year. Schedule III YTD YTD Dollar % Group Name Current Prior Diff. Diff. 423 Wholesale Trade, Durable Goods $ 218,915.59 $ 271,608.40 $ (52,693) - 19.40% 621 Ambulatory Health Care Service $ 35,450.86 $ 70,597.62 $ (35,147) - 49.78% 452 General Merchandise Stores $ 453,426.13 $ 471,695.31 $ (18,269) -3.87% 522 Credit Intermediation $ 20,037.95 $ 36,967.36 $ (16,929) - 45.80% 336 Transportation Equipment Man $ 8,895.44 $ 25,058.17 $ (16,163) - 64.50% 451 Sporting Goods, Hobby, Books $ 109,224.59 $ 124,272.18 $ (15,048) - 12.11% 442 Furniture and Home Furnishings $ 106,162.58 $ 117,530.31 $ (11,368) -9.67% 448 Clothing and Accessories $ 420,320.93 $ 431,108.89 $ (10,788) - 2.50% 721 Accommodation $ 135,146.78 $ 141,387.59 $ (6,241) -4.41% 531 Real Estate $ 8,762.37 $ 11,702.53 $ (2,940) - 25.12% C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx INFORMATIONAL MEMO Page 5 The following charts show sales tax receipts the City collected from major industries from 2010 through first quarter of the current year. These categories include retail, services, wholesale, construction, and other consisting of manufacturing, transportation & warehousing, automotive, and miscellaneous. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx 33 34 INFORMATIONAL MEMO Page 7 $2,600,000 52,500,000 $2,400,000 52,300,000 $2,200,000 52,100,000 $2,000,000 51,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000 Retail 02 Q3 Q4 • 1010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2016 • 2017 $700,000 $600,000 $500,000 $400,000 5300,000 5200,000 5100,000 5- Wholesale 01 02 Q3 5600,000 $500,000 5400,000 5300,000 5200,000 $100,000 5- Q4 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2016 • 2017 51,600,000 51,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 5- Services 02 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 • 20]5 • 2016 • 2017 $450,000 $400,000 5350,000 5300,000 5250,000 5200,000 $150,000 $100,000 $50,000 5- Construction Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 1014 • 2015 • 2016 • 2017 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 IB 2015 • 2016 • 2012 C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx INFORMATIONAL MEMO Page 6 Below is Schedule IV which shows quarterly gambling tax earned in 2017 compared to 2016. Schedule IV - Gambling Tax (a) (d) 2017 Quarter 2016 2017 Allocated Earned Actual Actual Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 950,379 $ 977,003 $ 989,745 Q2 867,047 - 902,961 Q3 927,316 965,727 Q4 934,269 - 972,968 Totals $ 3,679,011 $ 977,003 $ 3,831,400 $ 26,624 3% $ (12,742) -1% $ 26,624 - $ (12,742) Gambling tax revenue during first quarter 2017 came in below the allocated budget estimate by $12.7K, or down 1%. However, gambling tax revenue was also nearly $27K, or 3% higher than 2016. 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) (d) 2017 Quarter 2016 2017 Allocated Earned Actual Actual Budget Q1 $ 161,269 $ 166,003 $ 178,187 Q2 156,588 - 173,014 Q3 157,862 174,422 Q4 157,821 - 174,377 Totals $ 633,540 $ 166,003 $ 700,000 INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount $ 4,734 3% $ (12,183) -7% $ 4,734 - $ (12,183) While first quarter 2017 admissions tax revenue received was $12K, or 7% less than budgeted projections, revenue was nearly $5K, or 3% higher than 2016. Schedule VI shows monthly telecommunications utility tax receipts for 2017 compared to 2016. Schedule VI - Telecommunications Utility Tax (c) (d) 2017 Quarter 2016 2017 Allocated Earned Actual Actual Budget Q1 $ 348,156 $ 323,708 $ 339,620 Q2 321,852 - 313,961 Q3 317,156 309,380 Q4 343,515 - 335,093 Totals $ 1,330,679 $ 323,708 $ 1,298,053 INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount $ (24,448) -7% $ (15,912) -5% $ (24,448) - $ (15,912) Current first quarter 2017 telecommunications utility tax is down by $15K, or 5% under budget and is $24K, or 7% less than 2016 actual for the same period last year. (a) (b) (c) (d) Gambling tax currently includes card games, punch boards, pull tabs, and amusement games. Excludes golf course admissions tax. Telecommunications Utility tax currently includes cellular, pager and telephone usage. Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter. C: \Users\ Vicky- C\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \QM71Z6241Info Memo Sales Tax - 2017 -Q1 2017MEMO (June 2017).docx 35 36 SALES TAX SUMMARY 1st Quarter 2017 (Received in March 2017 - May 2017) NAICS CONSTRUCTION 236 Construction of Buildings 237 Heavy & Civil Construction 238 Specialty Trade Contractors TOTAL CONSTRUCTION 16 TOTAL 760,913 81,491 541,481 $ 1,383,885 $ Overall Construction Change from Previous Year MANUFACTURING 311 Food Manufacturing 312 Beverage & Tobacco Products 313 Textile Mills 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 Computer & Electronic Products 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337 Fumiture & Related Products 339 Miscellaneous Manufacturing TOTAL MANUFACTURING S Overall Manufacturing Change from Previous 16 TOTAL 9,420 5,216 222 11,406 1,024 54 3,305 27,243 28,714 19 -22 6,454 3,615 2,008 10,978 10,914 5,490 2,588 115,102 5,357 19,806 268,912 $ 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 493 Warehousing & Storage TOTAL TRANSP & WHSING 16 TOTAL 0 44 2,679 664 2,058 48,851 811 2,139 1,430 $ 58,677 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 16 TOTAL 423 Whls Trade - Durable Goods 1,133,269 424 WhIs Trade - Nondurable Goods 157,297 425 Wholesale Electronic Markets 2,988 WHOLESALE TRADE TOTAL $ 1,293,553 $ Overall Wholesale Change from Previous Year 6/1907017 16YTD 170,889 12,590 117,654 301,132 $ 16 YTD 1,753 1,838 4 2,695 344 7 513 8,250 7,547 5 2,522 668 473 547 1,943 8,679 666 505 25,058 1,098 17 YTD 184,266 15.774 126.043 326,082 $24,950 8.3% YTD % DIff 7.8% 25.3% 7.1% 17 YTD 1,932 4.477 130 3579 242 8 478 6276 6,539 4 1,494 1,093 726 266 3,840 1,491 2,955 2,796 8,895 1,315 3,610 3,802 68,725 $ 52,338 ($16,387) 16YTD 0 5 475 102 50 13,180 204 697 310 15,024 YTD % Diff 10.2% 143.5% 3312.1% 32.8% -29.7% 16.2% -6.8% - 23.9% - 13.4% -21.3% -40.8% 63.7% 53.5% -51.5% 97.6% - 82.8% 343.8% 453.3% -64.5% 19.8% 5.3% -23.8% YTD 17 YTD % Diff 11 0.0% 94 1762.3% 379 -20.3% 53 - 48.3% 15 - 70.3% 13,822 4.9% 226 10.8% 361 - 48.2% 396 27.7% $ 15,356 $333 2.2% 16YTD 271,608 36,961 528 309,098 $ YTD 17YTD %Dill 218.916 -19.4% 36,756 -0.6% 624 18.0% 256,295 ($52,802) •17.1% NAICS AUTOMOTIVE 16 TOTAL 4.41 Motor Vehicle & Parts Dealer 654,979 447 Gasoline Stations 88,489 TOTAL AUTOMOTIVE $ 743,468 $ Overall Automotive Change from Previous Year NAICS 442 443 444 445 446 448 451 452 453 454 RETAIL TRADE Fumiture & Home Fumishings Electronics & Appliances Building Material & Garden Food & Beverage Stores Health & Personal Care Clothing & Accessories Sporting Goods, Hobby, Books General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers TOTAL RETAIL TRADE 16 TOTAL 475,117 1,180,563 734,035 236,578 306,528 2,089,128 573,709 2,202,158 728,706 156,153 $ 8,682,675 $ 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 $ 5,637,723 $ Overall Services Change from Previous Year 16 TOTAL 857,972 117,680 656,465 586,578 5 153,702 11,320 325,504 245,035 2,401,994 212,841 68,626 MISCELLANEOUS 000 Unknown 111 -115 Agriculture, Forestry, Fishing 211 -221 Mining & Utilities 16 TOTAL 0 514 68 16 YTD 153,816 20,693 174,509 $ 16 YTD 117,530 262,019 152,805 45,822 69,317 431,109 124,272 471,695 165,225 33,044 1,872,840 S 16 YTD 193,289 38,893 169,617 111,142 3 32,569 1,750 77,609 53,646 562,672 52,455 17,984 1,311,628 $ 999 Unclassifiable Establishments 193,069 MISCELLANEOUS TOTAL $ 193,651 $ Overall Miscellaneous Change from Previous Year 16YTD 0 125 104 82,353 82,582 16 TOTAL 16 YTD YTD 17 YTD % Diff 171,775 11.7% 20,418 -1.3% 192,193 $17,684 10.1% 17YTD %Dill 106,163 -9.7% 270,984 3.4% 160,412 5.0% 54,826 19.6% 68,845 -0.7% 420,321 -2.5% 109,225 -12.1% 453,426 -3.9% 167,657 1.5% 37,196 12.6% 1,849,054 ($23,786) -1.3% YTD 17 YTD % Diff 198,161 2.5% 21,670 -44.3% 166,026 -2.1% 114,071 2.6% 0 0.0% 36,930 13.4% 1,508 -13.9% 43,895 -43.4% 64,720 20.6% 571,704 1.6% 62,636 19.4% 20,925 16.4% 1,302,246 ($9,382) -0.7% YTD 17YTD %DlH 0 0.0% 80 -35.9% 86 -17.0% 268,240 225.7% $ 268,406 $185,824 225.0% YTD 17YTD %Dill GRAND TOTALS $18,262,544 34,135,538 Grand Total Change from Previous Year Grand Total Change from Previous Year • Without New Construction $461,971 $126,433 3.06% $101,483 2.65%