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HomeMy WebLinkAboutFIN 2018-04-17 Item 2E - Report - 2017 4th Quarter Sales Tax and MiscellaneousCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director CC: Mayor Ekberg DATE: April 11, 2018 SUBJECT: Sales Tax and Miscellaneous Revenue Report- 4th Quarter 2017 Although 2017 sales tax collections came in only 1% or $98 thousand lower than 2016, the 2017 performance was 6% or $1.2 million below budget. The largest sector decline of ($115,985) occured in wholesale trade; the largest sector increase of $105,608 occurred in the miscellaneous category, unclassifiable establishments. A detailed analysis of sales tax performance will be presented to the Finance Committee under separate memorandum. Schedule I - Sales Tax in $1,000's 147 2016 Actual 2017 Actual YOY Change Other - Month - ! Other ; Total ! Other ; Total Construction ; Industries ! Total Collect- Construe I Construct I I j ed Rec'd tion 1Industries: tion 1 Industries 1 Amount % 1 Amount % � Amount % Jan Mar $ 99 j $ 1,190 j $ 1,289 $ 123 j $ 1,149 j $ 1,272 $ 24 24%1 $ (41) -3%1 $ (17) -1% Feb Apr 97 j 1,231 1 1,328 83 j 1,123 j 1,206 (14) -14%1 (108) -9%1 (122) -9% Mar May 105 j 1,413 j 1,518 120 1 1,664 j 1,784 15 14%j 251 18%j 266 18% Q-1 Totals $ 301 1 3,834 I $ 4,135 $ 326 1 3,936 $ 4,262 $ 25 8%� 102 3%� $ 127 3% Apr Jun 105 1,336 1,440 92 1 1,316 1,408 (13) 12%I (20) -1%1 (33) -2% May Jul 119 ; 1,361 I 1,480 106 I 1,315 ; 1,421 (12) -10%I (46) -3%I (59) -4% Jun Aug 139 ! 1,553 ! 1,692 119 ! 1,387 ! 1,506 (20) -14%! (166) -11%! (185) -11% Q-2 Totals $ 362 ! 4,250 ! $ 4,612 $ 317 ! 4,018 ! $ 4,335 $ (45) -12%! (232) -5%! $ (277) -6% Jul Sep 1091 1,4281 1,537 1311 1,3761 1,508 22 20%1 (52) -4%1 (30) -2% Aug Oct 111 I 1,438 j 1,549 126 j 1,345 j 1,471 15 13%1 (93) -6%j (78) -5% Sep Nov 115 j 1,444 1 1,559 140 1 1,473 j 1,613 25 22%j 29 2%1 54 3% Q-3 Totals $ 335 ; 4,310 ; $ 4,645 $ 397 ; 4,194 i $ 4,591 $ 62 19%; (116) -3%; $ (54) -1% Oct Dec 143 1 1,263 1 1,406 144 1 1,329 i 1,473 2 1%165 5%I 67 5% Nov Jan 126 ; 1,368 ; 1,494 110 ; 1,424 ; 1,534 (16) -13%: 56 4%I 40 3% Dec Feb 118 ! 1,852 ! 1,970 120 ! 1,849 ! 1,969 2 1%! (3) 0%! (1) 0% Q-4 Totals $ 386 ! 4,484 ! $ 4,870 $ 374 ! 4,602 ! $ 4,976 $ (12) -3%! 118 3%! $ 106 2% Totals $ 1,385 j 16,878 j $ 18,262 $ 1,414 1 16,750 j $ 18,164 $ 30 2%1 (128) -1%1 $ (98) -1% 147 INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's Schedule I - Sales Tax 1 48 W:1FIN Projects\Sales Tax Information120171Info Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx - Month - Collected Received 2016 2017 Variance [Actual Over (Under) Original Budget] Actual Allocated Budget Actual 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 1,408 (119) -8% May Jul 1,480 1,568 1,421 (147) -9% Jun Aug 1,692 1,793 1,506 (286) -16% Q-2 Totals $ 4,612 $ 4,887 $ 4,335 $ (552) -11% Jul Sep 1,537 $ 1,629 1,508 (121) -7% Aug Oct 1,549 1,642 1,471 (171) -10% Sep Nov 1,559 1,652 1,613 (39) -2% Q-3 Totals $ 4,645 $ 4,923 $ 4,591 $ (331) -7% Oct Dec 1,406 $ 1,490 1,473 (17) -1% Nov Jan 1,494 1,583 1,534 (49) -3% Dec Feb 1,970 2,089 1,969 (120) -6% Q-4 Totals $ 4,870 $ 5,162 $ 4,976 $ (186) -4% Totals $ 18,262 $ 19,352 $ 18,164 $ (1,189) -6% 1 48 W:1FIN Projects\Sales Tax Information120171Info Memo Sales Tax -2017-Q4 2017MEMO (Dec 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. $150,000 $100,000 $50,000 $- $(50,000) $(100,000) $(150,000) Change YTD by Category* Miscellaneous $105,608 Automotive $57,966 Construction $31,551 Reta i I Trade $11,846 ra ns porta ti on/W a reho u s i $(4,742) Manufacturing $(90,949) Whol es a I e Tra de $(115,985) Services $(93,614) W:IFIN Projects\Sales Tax Information1201711nfo Memo Sales Tax -2017-Q4 2017MEMO (Dec 2017).docx 149 1 50W:\ FIN Projects\Sales Tax Information120171Info Memo Sales Tax-2017-Q4 2017MEMO (Dec 2017).docx SALES TAX SUMMARY 4th Quarter 2017 (Received in March 2017 - February 2018) NAICS CONSTRUCTION 236 Construction of Buildings 237 Heavy & Civil Construction 238 Specialty Trade Contractors TOTAL CONSTRUCTION 16 TOTAL 16 YTD 761,107 761,107 81,491 81,491 539,624 539,624 $ 1,382,222 $ 1,382,222 $ Overall Construction Change from Previous Year MANUFACTURING 16 TOTAL YTD 17YTD %Diff 844,136 10.9% 107,260 31.6% 462,376 -14.3% 1,413,773 631,551 2.3% 16 YTD 17YTD YTD % Diff 311 Food Manufacturing 9,420 312 Beverage & Tobacco Products 5,217 313 Textile Mills 222 314 Textile Product Mills 11,406 315 Apparel Manufacturing 1,024 316 Leather & Allied Products 54 321 Wood Product Manufacturing 3,257 322 Paper Manufacturing 27,243 323 Printing & Related Support 28,709 324 Petroleum & Coal Products 19 325 Chemical Manufacturing -22 326 Plastic & Rubber Products 6,454 327 Nonmetallic Mineral Products 3,615 331 Primary Metal Manufacturing 2,008 332 Fabricated Metal Mfg Products 10,978 333 Machinery Manufacturing 10,555 334 Computer & Electronic Products 5,490 335 Electric Equipment, Appliances 2,588 336 Transportation Equipment Mfg 115,102 337 Fumiture & Related Products 5,608 339 Miscellaneous Manufacturing 19,790 TOTAL MANUFACTURING $ 268,737 $ Overall Manufacturing Change from Previous Year TRANSPORTATION &WAREHOUSING 481 Air Transportation 482 Rail Transportation 483 Water 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 & M-tSING 16 TOTAL 0 44 269 2,679 664 2,058 48,851 811 2,139 1,161 $ 58,677 $ Overall Transportation Change from Previous Year 9,420 10,703 13.6% 5,217 11,960 129.3% 222 409 84.3% 11,406 14,792 29.7% 1,024 888 -13.3% 54 88 63.9% 3,257 3,740 14.8% 27,243 24,646 -9.5% 28,709 28,490 -0.8% 19 41 108.8% -22 -15,834 73547.1% 6,454 3,955 -38.7% 3,615 5,081 40.5% 2,008 1,803 -10.2% 10,978 8,752 -20.3% 10,555 6300 -40.3% 5,490 16531 91.8% 2,588 3,949 52.6% 115,102 29,297 -74.5% 5,608 8,432 50.3% 19,790 19,765 -0.1% 268,737 $ 177,788 ($90,949) -33.8% 16 YTD WHOLESALE TRADE 16 TOTAL 0 44 269 2,679 664 2,058 48,851 811 2,139 1,161 58,677 $ 17 YTD 11 169 86 1,852 395 57 47,071 816 1,600 1,878 53,936 ($4,742) 16YTD 17YTD YTD % Diff 0.0% 285.5% -68.1% -30.9% -40.5% -97.2% -3.6% 0.6% -25.2% 61.8% 423 Whls Trade -Durable Goods 1,132,580 424 Whls Trade -Nondurable Goods 157,285 425 Wholesale Electronic Markets 2,988 WHOLESALE TRADE TOTAL $ 1,292,853 $ Overall Wholesale Change from Previous Year 1,132, 580 1,018,477 157,285 155,695 2,988 2,696 1,292,853 $ 1,176,868 ($115,985) NAICS AUTOMOTIVE 16 TOTAL 441 Motor Vehicle & Parts Dealer 654,125 447 Gasoline Stations 88,489 TOTAL AUTOMOTIVE $ 742,614 $ Overall Automotive Change from Previous Year NAICS RETAIL TRADE 16 TOTAL 442 Fumiture & Home Fumishings 475,117 443 Electronics & Appliances 1,181,336 444 Building Material & Garden 734,089 445 Food & Beverage Stores 236,576 446 Health & Personal Care 306,652 448 Clothing & Accessories 2,089,128 451 Sporting Goods, Hobby, Books 573,709 452 General Merchandise Stores 2,202,158 453 Miscellaneous Store Retailers 727,568 454 Nonstore Retailers 156,093 TOTAL RETAIL TRADE $ 8,682,425 Overall General Retail Change from Previous SERVICES 16 YTD 654,125 88,489 742,614 $ 16 YTD 475,117 1,181,336 734,089 236,576 306,652 2,089,128 573,709 2,202,158 727,568 156,093 $ 8,682,425 $ Year 16 TOTAL 16 YTD 17 YTD 709,541 91,039 800,581 $57,966 7.8% YTD % Diff 8.5% 2.9% 17 YTD 445,454 1,168,189 805,251 257,762 298,682 2,066,870 533,560 2,131,267 738,487 248,748 8,694,271 611,846 0.1% % Diff -6.2% -1.1% 9.7% 9.0% -2.6% -1.1% -7.0% -3.2% 1.5% 59.4% YTD 17YTD %Diff 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 858,379 117,529 657,600 586,373 5 155,622 11,320 325,504 245,035 2,401,994 214,562 68,626 $ 5,642,550 $ Overall Services Change from Previous Year MISCELLANEOUS 858,379 117,529 657,600 586,373 5 155,622 11,320 325,504 245,035 2,401,994 214,562 68,626 5,642,550 820,832 -4.4% 106,045 -9.8% 623,983 -5.1% 547,039 -6.7% 9 0.0% 170,046 9.3% 10,355 -8.5% 119,513 -63.3% 256,620 4.7% 2,536,470 5.6% 270,882 26.2% 87,143 27.0% $ 5,548,937 ($93,614) -1.7% YTD 16 TOTAL 16 YTD 17 YTD % Diff 000 Unknown 111-115 Agriculture, Forestry, Fishing 211-221 Mining & Utilities 999 Unclassifiable Establishments MISCELLANEOUS TOTAL $ -8.1% Overall Miscellaneous Change from Previous Year 0 0 0 -100.0% 514 514 1,089 111.8% 133 133 547 311.9% 191,819 191,819 296,439 54.5% 192,466 $ 192,466 $ 298,074 $105,608 54.9% YTD % Diff -10.1% -1.0% -9.8% 16 TOTAL 16 YTD YTD 17 YTD "/ Diff GRAND TOTALS $18,262,544 $18,262,544 $18,164,227 Grand Total Change from Previous Year ($98,317) -0.54% -9.0% Grand Total Change from Previous Year - Without New Construction ($129,868) -0.77% INFORMATIONAL MEMO Page 5 Below is Schedule IV which shows quarterly gambling tax earned in 2017 compared to 2016. Schedule IV - Gambling Tax (a) Quarter Earned (d) 2016 2017 Actual Actual 2017 Allocated Budget INCREASE YEAR OVER YEAR Amount (DECREASE) BUDGET VARIANCE Amount Q1 Q2 Q3 Q4 Totals $ 950,379 $ 977,003 867,047 983,322 927,316 951,991 934,269 958,503 $ 3,679,011 $ 3,870,819 $ 989,745 902,961 965,727 972,968 $ 3,831,400 26,624 116,276 13% 3% 24,675 24,234 191,808 3% 3% 5% $ (12,742) -1% 80,361 9% (13, 736) (14,465) -1% $ 39,419 1% - 1% Gambling tax revenue exceeded expectations in 2017 and ending the year with a year over year increase of 5% or $191 thousand and an increase over budget of 1% or $39 thousand. Four casinos are in operation - the Great America, Riverside Inn, Fortune (formerly the Golden Nugget) and the Macau. Schedule V shows monthly admissions tax receipts for the prior year and current year to date. Schedule V - Admissions Tax (b) Quarter Earned (d) 2016 2017 Actual Actual 2017 Allocated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount OA Amount Oh Q1 Q2 Q3 Q4 Totals $ 161,269 $ 156,588 157,862 157,821 $ 633,540 $ 166,003 $ 157,574 177,422 171,641 672,640 $ 178,187 173,014 174,422 174,377 700,000 $ 4,734 986 19,560 13,820 $ 39,100 3% $ (12,183) 1% (15,441) 12% 3,000 (2,736) 6% $ (27,360) 9% - 7% -9% 2% - 2% Admissions tax revenue exceeded 2016 collections by 6% or $39 thousand but came in at 4% or $27 thousand less than budget. The movie theatres are the main source of admissions tax revenue. Schedule VI shows monthly telecommunications utility tax receipts for 2017 compared to 2016. Schedule VI - Telecommunications Utility Tax (0) Quarter Earned (d) 2016 2017 Actual Actual 2017 Allocated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 Q2 Q3 Q4 Totals $ 348,156 $ 323,708 $ 339,620 321,852 312,456 313,961 317,156 388,433 309,380 343,515 316,497 335,093 $ 1,330,679 $ 1,341,094 $ 1,298,053 $ (24,448) (9,397) 71,277 (27, 018) $ 10,415 - 7% - 3% 22% -8% 1% $ (15,912) (1,505) 79,053 (18, 596) $ 43,041 - 5% 0% 26% - 6% 3% Telecommunications tax increased over 2016 by 1% or $10 thousand and exceeded budget by 3% or $43 thousand. This is due to a taxpayer who filed returns from prior years of $80K on behalf of their merger company. (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. 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