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Home My WebLink AboutFIN 2017-10-03 Item 2C - Report - 2017 2nd Quarter Sales 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: October 3, 2017 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 2nd Quarter 2017 -$ales Tax in 11,000's Second quarter sales tax collections decreased by approximately $277K, or (6%) when compared with the same period in 2016. There was a decrease in construction sales tax of $45K over the same quarter last year, or down by 12% as well as a decrease in sales tax from other industries of $232K which fell by 5% as a result. 13 2016 Actual 2017 Actual YOY Change -- Month -- Collect- ed Recd Olher i Construc-� ! tion Industries u Total . ! COnstruC ! lion I Other ! i Industries i Total ` Olher Construction j Industries ! Total I i Amount % i Amount °% i Amount % Jan Mar $ 99 $ 1,190 $ 1,289 $ 123 j $ 1,149 $ 1,272 $ 24 24%1 $ (41) -3%1 $ (17) -1% Feb Apr 07 j 1,231 j 1,328 83 j 1,123 i 1,206 (14) -14%j (108) -9%j (122) -9% Mar May 105 i 1,413 i 1,518 120 i 1,664 i 1,784 15 14%j 251 18%i 266 18% 0-1 Totals $ 301 1 3,634 1 $ 4,135 $ 326 i 3,936 1 5 4,252 $ 25 8%1 102 3%1 $ 127 3% Apr Jun 105 i 1,336 1 1,440 92 1 1.316 i 1,408 (13) -12%1 (20) -1%i (33) -2% May Jul 1191 1,361 1 1,480 108 i 1,315 1 1,421 (12) -10%1 (46) -3%1 (59) -4% Jun Aug 139 i 1,553 1 1,692 119 i 1.387 t 1,505 (20) -14%1 (166) -11%� (185) -11% Q-2 Totals $ 362 ! 4,250 ! $ 4,612 $ 317 ! 4,018 ! 5 4,335 $ (45) -12%! (232) -5%! 5 (277) -6% Jul Sep 109 ! 1,428 ! 1,537 ! ! - - ! - ! - Aug Oct 111 1 1,438 j 1,549 ! ! - - ! - ! - Sep Nov 1151 1,444 j 1,559 - ! ! - - 1 f - Q-3 To!als $ 335 ^ 4,310 l $ 4,645 $ - I C $ - $ - -: -1-- - l 5 . • Oct Dec 143 1 1,263 1 1,406 - j - j - - i - j . Nov Jan 126 j 1,368 i 1,494 - 1 - j - - i - j . Dec Feb 118.1 1,852 j 1,970 ; - i - - - i - -- Q-4 Totals $ 386 1 4,4844 5 4,870 $ - j - j $ - $ •i - -j $ • - Totals $ 1,385 i 16,878 i $ 18262 $ 643 i 7,954 ( 3 8,597 $ 20 i 130 i $ 150 Second quarter sales tax collections decreased by approximately $277K, or (6%) when compared with the same period in 2016. There was a decrease in construction sales tax of $45K over the same quarter last year, or down by 12% as well as a decrease in sales tax from other industries of $232K which fell by 5% as a result. 13 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 second quarter is Tess than anticipated by $672K, or a 7% variance from budgeted estimates. CAUsers4Vicky-CIAppDatell.ocallMicrosoft4Windows411VetCechelContent.Outlook1TBKDOZOF 11nfo Memo Sales Tax -2017.02 2D17MEMO (Oct 2017) Mei( 14 2016 2017 Variance [Actual Over (Under) - Allocated Original Month -- Actual Budget Actual Budget] 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 1,515 $ 1,609 1,784 175 11% Q-1 Totals $ 4,135 $ 4,3$2 $ 4,2$2 $ (120) -3% Apr Jun 1,440 $ 1,526 1,408 (119) -8% May Jul 1,480 $ 1,566 1,421 (147) -9% Jun Aug 1,692 $ 1,793 1,506 (286) -15% 0-2 Totals 8 4,612 $ 4,887 $ 4,335 r $ . (552) -11% Jul Sep 1,537 $ 1,629 1,509 (121) -7% Aug Oct 1,549 8 1,642 -- - Sep Nov 1,559 $ 1,652 - - - Q-3 Totals $ 4,645 $ 4,923 $ 1,508 $ (121) (0) Oct Dec 1,406 $ 1,490 - - Nov Jan 1,494 $ 1,583 -- - Dec Feb 1,970 $ 2,089 -- - 0-4 Totals $ 4,870 $ 5,162 $ - $ - - Totals $ 15,262 $ 19,352 $ 10,105 $ (793) Actual revenue from sales tax collections received through the second quarter is Tess than anticipated by $672K, or a 7% variance from budgeted estimates. CAUsers4Vicky-CIAppDatell.ocallMicrosoft4Windows411VetCechelContent.Outlook1TBKDOZOF 11nfo Memo Sales Tax -2017.02 2D17MEMO (Oct 2017) Mei( 14 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. 5206,000 5150.000 $100,000 $50.cici i $11oa,00al 5(150,000) Construction $120,1529 % Change YTD by Category* Ttanspnrtatlon/WatchouSlnf 57,159 Manufacturing (46,2'15) Wholesale Tradc AUtomotiva $44,353 ■ Retail Tra9 5(150,240) $(110,772) Services 5546,333) Miscellaneous 5]54,535 Total Construction decreased by $20K, or (3%) for second quarter. Construction of Buildings had an increase in sales tax activity of $5K, or up by 1.4%, while the other two categories of Construction in the areas of Heavy & Civil Construction and Specialty Trade Contractors experienced a decrease in sales tax activity of $9K and $16K, or down by 28% and 6%, respectively. The decrease of $46K, or (33%) in the Manufacturing category is mostly attributable to a drop in sales tax activity for the Transportation Equipment Manufacturing area by $46K, or down by 72%. The continued overall decline of $120K, or (18%) in the Wholesale Trade category is due to decreases in sales activity in the area of Wholesale Durable Goods of $117K which is down by nearly 20% while the Automotive industry experienced an increase of $44K, or up by 13% due to increased sales tax activity in the area of Motor Vehicle & Parts Dealers. Total Retail Trade decreased by $119K, or fell by 3% due primarily to a decline in sales tax activity for Electronics & Appliances of $124K, or down by (20%), While the area of Nonstore Retailers experienced an increase in sales tax activity of $64K, or up by 91%, the areas of Sporting Goods/Hobby/Books and General Mdse Stores are down by $39K and $35K, or have decreased by 14% and 4%, respectively. The Services category which shows a decrease of $46K, or down by 2% is mostly attributable to a collective decline in sales tax activity in the areas of Information, Finance & Insurance, Real Estate/Rental/Leasing and Health Care Social Assistance by $167K, or a decrease of 17%. However, the areas of Professional/Scientific/Tech, Accommodation & Food Svcs and Other Svcs are showing collective increases of $109K, or up by 7%. The miscellaneous category remains favorable through second quarter due primarily to the annual use tax filings in the Nonclassifiable Establishments related to artwork from earlier in the year. C:lUsersNicky-CL4ppRatalLocaltlicrosoftlWindowsilNetCachelContenl,OutlookITBKDOZORIInfo Memo Sales Tax -2017-02 2017MEMO (Oct 2017),docx 15 INFORMATIONAL MEMO Page 4 Schedule 11 shows current year-to-date sales tax collected from the top ten industry classifications. Food Services/Drinking Places in the NAICS 722 category has the highest year over year increase at $47,987 due to growth in overall gross sales over the same quarter previous year. This is followed by an increase of $44,107 in the category of Motor Vehicle & Parts Dealer, and then Building Material & Garden with an increase of $21,868 during the current quarter due to overall increases in reported sales tax activity. Schedule II YTD YTD Dollar Grou ■ Name Current Prior Diff. Diff. 452 General Merchandise Stores $ 943,609.29 $ 978,188.52 5 (34,579) 448 Clothing and Accessories $ 913,601.82 5 923,807.56 $ (10,206) 722 Food Services, Drinking Places $ 910,340.96 5 662,353.94 $ 47,987 443 Electronics and Appliances $ 506,739.03 $ 630,697.87 5 (123,959) 423 Wholesale Trade, Durable Goods $ 480,588.11 5 598,104.18 $ (117,416) 044 Building Material and Garden $ 384,083.89 $ 362,218.18 $ 21,868 236 Construction of Buildings $ 378,877.13 s 373,587.97 $ 5,309 441 Motor Vehicle and Parts Dealer $ 349,359.80 $ 305,252.85 $ 44,107 453 Miscellaneous Store Retailers $ 336,012.05 $ 332,519.06 $ 3,493 721 Accommodation 5 312,583.07 $ 315,299.52 $ (2,716) -3.54% -1.10% 5.56% -19.65% -19.63% 6.04% 1.42% 14.45% 1.05% -0.86% Schedule 111 shows the ten largest declines in sales tax revenue by dollar difference for industries collected year-to-date. While the NAICS category 443 for Electronics & Appliances experienced a current quarter decrease in sales tax collections of $124K, the NAICS category 531 for Real Estate experienced a 76% decrease in sales tax activity over the previous year. Schedule III YTD YTD Dollar °lo Group Name Current Prior Diff. Diff. 443 Electronics and Appliances 423 Wholesale Trade, Durable Goods 821 Ambulatory Health Care Service 339 Transportation Equipment Man 451 Sporting Goods, Hobby, Books 452 General Merchandise Stores 522 Credit Intermediation 531 Real Estate 517 Telecommunications 532 Rental and Leasing Services $ 506,739.03 $ 630,697.67 $ (123,959) -19.85% $ 480,688.11 $ 598,104.16 $ (117,416) -19.63% $ 51,442.06 $ 129,648.33 5 (78,206) -60.32% $ 17,896.19 5 63,921.91 $ (46,026) -72.00% $ 232,365.32 5 271,253.89 5 (38,888) -14.34% $ 943,609_29 $ 978,188.52 5 (34,579) -3.54% $ 37,559.55 $ 68,764.24 5 (31,205) -45.38% $ 5,893.88 $ 24,810.21 5 (18,917) -78.24% $ 304,970.88 3 323,088,57 5 (18.118) -5.61% $ 286,514.76 $ 303,499.14 $ (16,984) -5.60% C:\Users\Vicky-C1AppData)LocallMicrosoft\Windows\INelC8chetContent.Outlnok\TBKD0ZORIInfo Memo Sales Tax -2017-Q2 2017M EMO (CM 2017).docx 16 INFORMATIONAL MEMO Page 5 The following charts show sales tax receipts the City collected from major industries from 2010 through second quarter of the current year. These categories include retail, services, wholesale, construction, and other consisting of manufacturing, transportation & warehousing, automotive, and miscellaneous, S1,609po0 $1,54aaoo $2,400,000 $2,300.000 $2,200.400 $ 2,190,900 $2,a0o,400 51,409,999 $1.a90.oaa $1,700,000 $1.600,004 S1,sa4,099 Retail ✓ am • alt • 1.11 • 11[41 II DM • 2017 $799,909 $690,44❑ $500,000 $440,0410 5300.040 $200,40) $100,009 5 - al Wholesale 42 43 44 S1,606,000 $1,446,409 $1,w9,000 $1.o00,099 SWAN $600,000 $400,006 520),000 5- services Q Q $459,000 $4oa,oao 5350,090 $300,000 $250,400 5200909 $159,400 $100,000 S59,oc9 Construction 4i 61910 • 1911 • 1911 • 1sn • 101i 41011 01414 • 11111 $eoa,000 5500,000 5490,979 $340, rroa $244,0ia $160,900 Other -Mfg, Trnsp/Wrhsng, Automotive, & Misc. 4i q2 013 04 • N50 YM51 • ▪ 141, • 2911. Misers\Vicky-CIAppDatalLocellMicrosoft1Windowsl lNetCachelcontent,OutlooMT6I(DOZORllnto Memo Sales Tax -2017-02 2017MEMO (Oct 2017).docx 17 INFORMATIONAL MEMO Page 6 Below is Schedule IV which shows quarterly gambling tax earned in 2017 compared to 2016. Schedule IV - Gambling Tax13) td) 2017 Quarter 2016 2017 Allocated Earned Actual Actual Budget Q1 $ 950,379 $ 977.003 $ 989,745 02 867,047 983,322 902,961 Q3 927,316 965,727 04 934,269 - 972,968 INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount $ 26,624 3% $ (12,742) 116,276 13% 80,361 -1% 9% Totals $ 3,679,011 $ 1,960,325 $ 3,831,400 $ 142,899 - $ 67,619 Gambling tax revenue for second quarter 2017 came in above the previous year by $80K, or up by 13%. As a result, overall year-to-date gambling tax revenue is up by a total of $143K, or has increased nearly 8% when compared with 2016 and has exceeded year-to-date allocated budget by nearly $70K, or up by approximately 4%. 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 (e) (d) 2017 Quarter 2016 2017 Allocated Earned Actual Actual Budget Q1 $ 161,269 $ 166,003 $ 178,187 Q2 156,588 157,574 173,014 03 157,862 - 174,422 04 157,821 - 174,377 INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount °!o $ 4,734 3% $ (12,183) 986 1% (15,441) -7% -9% Totals $ 633,540 $ 323,577 $ 700,000 $ 5,720 - $ (27,624) While second quarter 2017 admissions tax revenue received was $15K, or 9% less than budgeted projections, year-to-date revenue is up by nearly $6K, or approximately 2% higher than 2016. Schedule VI shows monthly telecommunications utility tax receipts for 2017 compared to 2016. Schedule VI - Telecommunications Utility Tax e] (d) 2017 INCREASE (DECREASE) Quarter 2016 2017 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount _ % 01 $ 348,156 $ 323,708 $ 339,620 $ (24,448) -7% $ (15,912) -5% Q2 321,852 312,456 313,981 (9,397) -3% (1,505) 0% 03 317,156 309,380 04 343,515 - 335,093 Totals $ 1,330,679 $ 636,164 $ 1,298,053 $ (33,845) $ (17,417) Current second quarter 2017 telecommunications utility tax remained stable as compared to allocated budget and is $9K, or just 3% below 2016 actual for the same period. {e} {b} {G) (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.IUserslVicky-C44ppOotas,ocelMicroscft1WindowskINetCeche1Content. OutlocklTBItDOZORtlnfo Memo Sales Tax -2017•Q2 2017MEMO (Oct 2017),docx 18 SALES TAX SUMMARY 2nd Quarter 2017 (Received in March 2017 - August 2017) NAICS CONSTRUCTION 236 Construction of Buidings 237 Heavy & CM Construction 238 Specdty Trade Contractors 16 TOTAL 760,960 81,491 540,462 TOTAL CONSTRUCTION $ 1,382,913 $ Overall Construction Changs from Previous Year MANUFACTURING 16 TOTAL 16 YTD 373,568 33,340 255,992 662,699 311 Foal Manufacturing 312 Beverage & Tobacco Products 313 Textile Mis 314 Textile Product Mars 315 Apparel Manufacturing 316 Leather & Aied Products 321 Wood Product Manufacturing 322 Paper Manufacturing 323 Priding & Related Support 324 Petroleum 8 Coal Products 325 Chemical Manufacturing 326 Piaslic & Rubber'Produds 327 NoemNage Mineral Products 331 Prinary Metal Marrufaclurilg 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 334 Computer & Electronic Products 335 Electric Equipment. Applarrces 336 Transportation Equipment Mfg 337 Fum4une & Related Products 339 Miscellaneous Manufacuring TOTAL MANUFACTURING 9,420 5,217 222 11,406 1,024 54 3,257 27243 28,709 19 -22 8.454 3,615 2,006 10,978 10,914 5,490 2,588 115,102 5.608 19,790 16 'YTD 3,893 4.0.35 5 5,702 613 21 910 12,787 14,134 10 5,253 2.926 973 1,222 6,526 4,884 1,547 904 63,922 2,376 8,919 YTD 17 YTD % Diff 378,877 1.4% 23,915 -283% 239,955 -63% 5 642,747 (520,152) -3.03% YTD 17YTD %Diff $ 269,096 $ 141,565 Overall Manufacturing Change horn Previous Year TRANSPORTATION & WAREHOUSING 16 TOTAL 481 Air Transportation 482 Rai Transportation 484 Truck Transportation 465 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers 8 M mergers 493 Wanehousig & Storage TOTAL TRANS? & WHSING Overall Transportation C 0 44 2,679 654 2,058 48,851 811 2,139 1,430 S 58,877 S nee from Previous Year WHOLESALE TRADE 16 TOTAL 16 YTD 0 4,404 13.1% 6.267 55.3% 356 6465.0% 7,247 27.1% 561 -8.5% 48 125.8% 1,318 44.8% 12,275 -4.0% 13,953 -t3% 9 -9.6% 227 .95,7% 2,029 -30.6% 1,481 52.2% 772 -36,8% 4,374 -33,056 2.992 -38.7% 5,14i 232.396 2,921 223.3% 17,896 -72.0% 2,896 21.9% 8,100 -9.296 5 95,271 ($46;295) .3Z7% 17 YTD 35 1.074 168 222 24,3613 346 835 605 27,653 16 YTD 11 96 1.052 16 57 26,800 463 477 880 5 29,852 52, 198 17 YTD YTD % Diff 0,0% 175,7% -2.156 -90.456 -74.2% 10.0% 33.596 42.9% 45.696 423 Whls Trade -Durable Goods 1,133.040 424 Wills Trade -Nondurable Goods 157.285 425 Wholesale Electronic Markets 2,988 WHOLESALE TRADE TOTAL 5 1,293,313 $ Overall Wholesale Change from Previous Year 595,104 450,668 60,460 17,489 1,114 1,281 679,69B $ 559,458 0120,240,1 NAILS 441 447 NAILS 442 443 444 445 446 448 451 452 453 454 AUTOMOTIVE Motor Vehicle & Parts Dealer Gasoi+e Stations TOTAL AUTOMOTIVE 16 TOTAL 654,125 88,489 S 742,614 $ Overall Automotive Change from Previous Year RETAIL TRADE 16 TOTAL 16 YTD 305,253 43,297 348,549 $ 16 YTD Furniture & Home Furnishings Electronics 8 ,4p pf mores Buidng Material & Garden Food & Beverage Stow Health & Personal Care Clotting & Accessories Sportig Goods, Hobby, Books General Merchandise Stores Miscellaneous Store Retalers Nonsloare Relaters TOTAL RETAIL TRADE 475,117 1,180,323 734,080 236.576 306,529 2.089.126 573,704 2,202,158 726,355 156,157 $ 6,680,136 $ Overall Genera/ Retail Change from Previous Year SERVICES 16 TOTAL 230.835 639,698 362,216 101.857 142,729 923,868 271,254 978,189 332,519 70,572 4,044,676 17 YTD 349,360 43,543 392,902 $44352 12.734 YTD 56 04f 14.456 4.6% 17 YTD % Diff 215,529 X6.6% 506.739 -19,7% 384,084 6.0% 117,430 15.3% 141,629 -0.8% 913,602 -1.146 232,365 -14.3% 943,609 -3.596 336,012 11% 134,904 91.256 5 3,925,904 {5118,.772) -Z9% YTD 16 YTD 17 YTD % PIT 398,222 -5.754 40,721 -43.5% 292,686 -10,996 270,483 14.0% 0 0.0% 75,740 10.4% 3,228 31.3% 68,778 -525% 130,601 5.2% 1,222,924 3.896 130,197 18.9% 46,802 26.2% $ 2,660,383 (546,333) -1.7% 51X Inform abort 52X Finance & insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientifi . Tedi 551 Company Management 56X Admin, Syip, Raced Svcs 611 Educational Services 62X Heath Cans Social Assistance 71X Arts 8 Entertainment 72X Accommodation 8 Food Svcs 81X Other Services 92X Pubic Administration TOTAL SERVICES 858.343 117.686 657.321 586,373 5 155,422 11,320 325,504 245,035 2,401,994 214,520 68,626 $ 5,642,144 422,443 72,016 328,522 237,336 5 68,601 4,700 144,682 124,151 1,177.653 109,533 37.072 $ 2,726,716 Overall Services Change from Previous Year MISCELLANEOUS 16 TOTAL 16 YTD 17 YTC 000 Unknown 111-115 Agriculture, Forestry, Fishing 211-221 Miring & Ut4es 999 Unclassifiable Estahfishments MISCELLANEOUS TOTAL $ 6.0% Overall Miscellaneous Change from Previous 0 0 0 514 229 206 68 232 178 193,069 115,147 270,063 193,651 $ 115,609 $ 270,447 Year 5/54,938 133.9% YTD % Diff 0.0% -10.1% -23.3% 134.556 YTD y % Off -19,696 -3,7% 15.0% 16 TOTAL 16 YTD YTD 17 YTD %D4f GRAND TOTALS 316,262,544 $8,747,367 18,596,964 Grand Total Change from Previous Year ($150402) -1.7210 -17.7% Grand Total Change from Previous Year- Without New Construction (0130,250) -1.57%