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Home My WebLink AboutFIN 2019-02-25 Item 2C - Handout Distributed at Meeting - Sales Tax MitigationSales Tax Revenue earned through December 2018 (received February 2019): 1. Total Sales tax Revenue: Current Period 2018-12 = $2,064,871 Same Period Last Year = $1,968,689 Variance = increase of $ 96,182 or 4.9% vs same period Iast year 2. Total Construction Sales Tax Revenue: Current Period 2018-12 = $149,017 Same Period Last Year = $119,596 Variance = increase of $ 29,421 or 24.6% vs same period Iast year Year over Year Sales Tax Comparison through December 2018: Schedule I - Sales Tax in $1,000's 2017 Actual 2018 Actual YOY Change ! ! ! ! 1 ! ; Other Month ---- Other Total ; Other . Total Construction Industries Total Collect- Construe; . 1 Construc; i i ed Rec'd ton i Industries', fion i Industries . Amount % Amounti % i Amount % Jan Mar $ 123 ! $ 1,149 ! 8 1,272 8 116 ! $ 1,222 l $ 1,339 $ (6) -5%! $ 73 6%! S 67 5% Feb Apr 83 ! 1,123 ! 1,206 128 ! 1,211 ! 1,338 45 54%! 88 8%! 132 11% Mar May 120 i 1,664 i 1,784 131 i 1,487 i 1,618 11 9%i (177) -11%i (166) -9% Q-1 Totals $ 326 3,936 ; $ 4,262 8 375 ; 3,920 8 4,295 8 49 15%; (16) 0%; $ 33 1% Apr Jun 92 : 1, 316 : 1 1, 408 122 : 1' 349 : I 1 471 31 33%' 33 2%; 64 5% May Jul 106 ' i 1315 ' ' I 1 421 ' 134 ' 1 492 ' 1 626 ' 28 27%: 177 13%. 205 14% Jun Aug 119 : 1,387 ; 1,506 139 ; 1,682 ; 1,821 20 17%; 295 21%; 315 21% Q-2 Totals 8 317 ; 4,018 ; $ 4,335 S 395 l 4,524 l .1, $ 4,919 $ 79 25%! 505 13%; $ 584 13% Jul Sep 131 I, 1,376 I, 1,508 136 ! 1,678 1,814 5 4%1, 302 22%1, 307 20% Aug Oct 126 ! 1,345 1 1,471 124 1 1,682 1 1,805 (2) -2%! 337 25%! 335 23% Sep Nov 140 i 1,473 i 1,613 163 i 1,619 i 1,782 23 16%j 146 10%i 169 10% Q-3 Totals 8 397 1 4,194 ; $ 4,591 423 ; 4,979 ; $ 5,402 $ 26 7%; 785 19%; $ 811 18% Oct Dec 144 i 1,329 1,473 129 i 1,446 1 1,574 (16) -11%i 117 9%; 101 7% Nov Dec Jan Feb 110 i 120 ; 1'424 1 1,849 ; 1'534 1,969 152 ' i 1 487 ' ' 149 ; 1,916 ; 1.639 2,065 42 29 38%: 25%; 63 67 4%; 4%;I 105 96 7% 5% Q-4 Totals S 374 1. 4,602 I. $ 4,976 8 429 ! 4,849 I. 6,278 $ 55 15%! 247 5%! $ 302 6% Totals 8 1,414 ! 16,750 I, $ 18,164 $ 1,623 I, 1 ,271 I, 19,895 8 209 15%1 1,521 9%1$ 1,730 10% Budget to Actual Sales Tax Comparison through December 2018: Scliedtale I - Sales Tax in $1,000s -- Month -- Collected Rec'd Jan Mar Feb Apr Mar May Q-1 Totals 2017 2018 Variance Actual 1,272 1,206 1,784 4,262 Allocated Actual Budget 1,396 $ 1,339 1,323 $ 1.338 1,958 $ 1,618 4,677 $ 4,295 Amt (57) -4% 15 1% (340) -17% (382) -8% Apr May Jun Jun Jul Aug Q-2 Totals 1,408 1,421 1,506 4,335 1,545 1,559 1,653 1,471 1,626 1,821 4,757 $ 4,919 (74) -5% 67 4% 168 10% 162 3% Jul Sep Aug Oct Sep Nov Q-3 Totals 1,508 1,471 1,613 4,591 1,654 1,614 1,770 1,814 1,805 1,782 5,038 $ 5,402 160 10% 192 12% 12 1% 364 7% Oct Dec Nov Jan Dec Feb Q-4 Totals 1,473 1,534 1,969 4,976 $ 1,617 1,683 2,161 1,574 1,639 2,065 5,461 $ 5,278 Totals $ 18,164 $ 19,932 $ 19,895 $ (42) -3% (44) -3% (96) -4% (183) -3% (39) 0% SALES TAX SUMMARY 2018 Collections (Received in March 2018 - Feb 2019) NAICS CONSTRUCTION 17 TOTAL 17 YTD 236 Construction of Buildings 844,136 844,136 237 Heavy& Civil Construction 107,260 107,260 238 Specialty Trade Contractors 462,376 462,376 TOTAL CONSTRUCTION $ 1,413,773 $ 1,413,773 $ Overall Construction Change from Previous Year S 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 Furniture & Related Products 339 Miscellaneous Manufacturing TOTAL MANUFACTURING 17 TOTAL 17 YTD 10,703 11,960 409 14,792 888 88 3,740 24,646 28,490 41 -15,834 3,955 5,081 1,803 8,752 6,300 10,531 3,949 29,297 8,432 19,765 $ 177,788 $ 10,703 11,960 409 14,792 888 88 3,740 24,646 28,490 41 -15,834 3,955 5,081 1,803 8,752 6,300 10,531 3,949 29,297 8,432 19,765 177,788 $ 18YTD 1,028,985 73,288 520,840 1,623,112 209,339 14.8% 18 YTD 25,347 12,739 234 10,477 668 63 2,780 24,921 18,725 90 5,207 7,207 5,225 1,169 10,044 7,720 27,781 14,910 46,543 9,130 31,721 262,700 YTD % Diff 21.9% -31.7% 12.6% YTD % Diff 136.8% 6.5% -42.8% -29.2% -24.7% -28.5% -25.7% 1.1% -34.3% 122.3% -132.9% 82,2% 2.8% -35.2% 14.8% 22.5% 163.8% 277.5% 58.9% 8.3% 60.5% Overall Manufacturing Change from Previous Year 684,912 47.8% TRANSPORTATION & WAREHOUSING NAICS AUTOMOTIVE 441 Motor Vehicle & Parts Dealer 447 Gasoline Stations TOTAL AUTOMOTIVE NAICS 442 443 444 445 446 448 451 452 453 454 17 TOTAL 709,541 91,039 $ 800,581 $ Overall Automotive Change from Previous Year RETAIL TRADE Furniture & Home Furnishings 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 17 TOTAL 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 $ Overall General Retail Change from Previous Year SERVICES YTD 17 YTD 18 YTD °!°Diff 709,541 1,287,283 81.4% 91,039 98,001 7.6% 800,581 $ 1,385,284 $584,703 73.0% 17 YTD 18 YTD % Diff 445,454 521,980 17.2% 1,168,189 1,127,863 -3,5% 805,251 813,656 1.0% 257,762 306,566 18.9% 298,682 289,962 -2.9% 2,066,870 2,084,482 0.9% 533,560 535,648 0.4% 2,131,267 2,187,854 2.7% 738,487 834,133 13.0% 248,748 165,495 -33.5% 8,694,271 $ 8,867,639 6173,369 2.0% YTD 17 TOTAL 17 YTD 18 YTD % 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 721 Accommodation 722 Food Services, Drinking Places YTD 81X Other Services 17 TOTAL 17 YTD 18 YTD % Diff 92X Public Administration 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 & WHSING 11 169 86 1,852 395 57 47,071 816 1,600 1,878 $ 53,936 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 11 169 86 1,852 395 57 47,071 816 1,600 1,878 53,936 $ 2 80 1,622 2,537 715 7,549 38,474 1,034 1,816 2,362 56,191 $2,256 0.0% -52.7% 1789.8% 37.0% 80.9% 13063.6% -18.3% 26,8% 13.5% 25.7% TOTAL SERVICES 820,832 106,045 623,983 547,039 9 170,046 10,355 119,513 256,620 650,332 1,886,139 270,882 87,143 $ 5,548,937 $ 820,832 106,045 623,983 547,039 9 170,046 10,355 119,513 256,620 650,332 1,886,139 270,882 87,143 5,548,937 Overall Services Change from Previous Year MISCELLANEOUS 959,342 16.9% 143,696 35.5% 658,861 5.6% 739,444 35,2% 2 0.0% 316,828 86.3% 5,738 -44.6% 88,209 -26.2% 304,385 18.6% 717,341 10.3% 2,009,051 6.5% 260,134 -4.0% 71,562 -17.9% $ 6,274,592 $725,655 13.1% YTD 17 TOTAL 17 YTD 18 YTD %Diff 000 Unknown 111-115 Agriculture, Forestry, Fishing 211-221 Mining & Utilities 999 Unclassifiable Establishments MISCELLANEOUS TOTAL $ 4.2% Overall Miscellaneous Change from Previous Year YTD 17 TOTAL 17 YTD 18 YTD % Diff 423 Whls Trade -Durable Goods 424 Whls Trade -Nondurable Goods 425 Wholesale Electronic Markets WHOLESALE TRADE TOTAL $ 1,018,477 1,018,477 1,126,051 10.6% 155,695 155,695 180,401 15.9% 17 TOTAL 17 YTD 0 0 0 0.0% 1,089 1,089 1,737 59.6% 547 547 693 26.7% 296,439 296,439 113,390 -61,7% 298,074 $ 298,074 $ 115,820 ($182,254) -61.1% YTD 18 YTD % Diff 2,696 2,696 2,719 0.8% GRAND TOTALS 1,176,868 $ 1,176,868 $ 1,309,170 Overall Wholesale Change from Previous Year 8,164,227 $18,164,227 $19,894,510 Grand Total Change from Previous Year 6132,302 11.2% Grand Total Change from Previous Year- Without New Construction 1,730,283 9.53% 1,520,943 9.08% 2/23/2019 TUK Sales Tax Report Q4 2018 (Monthly Lookup) Washington State Legislature Page 1 of 1 • 1 • • 1 Supporting warehousing and manufacturing job centers. Sponsors: Entenman, Stokesbary, Sullivan, Senn, Chambers, Ramos, Callan, Graham Companion Bill: SB 5862 Bill History 2019 REGULAR SESSION Feb 7 First reading, referred to Finance. Feb 26 Scheduled for public hearing in the House Committee on Finance at 8:00 AM (Subject to change). Feb 27 Scheduled for executive session in the House Committee on Finance at 8:00 AM (Subject to change). https://app.leg.wa. gov/billsummary?BillNumber=1948&Chamber=House&Year=2019 2/25/2019 H-1309.3 HOUSE BILL 1948 State of Washington 66th Legislature 2019 Regular Session By Representatives Entenman, Stokesbary, Sullivan, Senn, Chambers, Ramos, Callan, and Graham Read first time 02/07/19. Referred to Committee on Finance. 1 AN ACT Relating to supporting warehousing and manufacturing job 2 centers; adding new sections to chapter 82.14 RCW; creating a new 3 section; and providing an expiration date. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 5 NEW SECTION, Sec. 1. The legislature recognizes that changes in 6 sales tax sourcing laws created a significant negative fiscal impact 7 on communities with a concentration of warehousing, manufacturing, 8 and shipping. These communities are vital job centers to our state 9 economy. Furthermore, the infrastructure demands to support these 10 industries are significant. The legislature hereby creates the 11 warehousing and manufacturing job center assistance program to 12 provide these communities with revenue to mitigate for the negative 13 fiscal impact of changes in sales tax sourcing laws, and fund 14 important infrastructure to maintain these key job centers. 15 NEW SECTION. Sec. 2. A new section is added to chapter 82.14 16 RCW to read as follows: 17 (1) In order to mitigate local sales tax revenue net losses as a 18 result of the sourcing provisions of the streamlined sales and use 19 tax agreement under this title, the state treasurer, on July 1, 2019, 20 and each July 1st thereafter through July 1, 2030, must transfer into p. 1 HB 1948 1 the manufacturing and warehousing job centers account from the 2 general fund the sum required to mitigate actual net losses as 3 determined under this section. 4 (2) The department must determine each qualified local taxing 5 jurisdiction's annual loss. The department must determine annual 6 losses by comparing at least twelve months of data from tax return 7 information and tax collections for each qualified local taxing 8 jurisdiction before and after July 1, 2008. The department is not 9 required to determine annual losses on a recurring basis, but may 10 make any adjustments to annual losses as it deems proper as a result 11 of the annual reviews. Each calendar quarter, distributions must be 12 made from the manufacturing and warehousing job centers account by 13 the state treasurer on the last working day of the calendar quarter, 14 as directed by the department, to each qualified local taxing 15 jurisdiction, for losses in respect to taxes imposed under the 16 authority of RCW 82.14.390, in an amount representing one-fourth of 17 the jurisdiction's annual loss reduced by voluntary compliance 18 revenue reported during the previous calendar quarter and marketplace 19 facilitator/remote seller revenue reported during the previous 20 calendar quarter. 21 (3) The definitions in this subsection apply throughout this 22 section unless the context clearly requires otherwise. 23 (a) "Loss" or "losses" means the local sales and use tax revenue 24 reduction to a local taxing jurisdiction resulting from the sourcing 25 provisions in RCW 82.14.490 and section 502, chapter 6, Laws of 2007. 26 (b) "Marketplace facilitator/remote seller revenue" means the 27 local sales and use tax revenue gain, including taxes voluntarily 28 remitted and taxes collected from consumers, to each local taxing 29 jurisdiction from part II of chapter 28, Laws of 2017 3rd sp. sess. 30 as estimated by the department in RCW 82.14.500(6). 31 (c) "Net loss" or "net losses" means a loss offset by any 32 voluntary compliance revenue and marketplace facilitator/remote 33 seller revenue. 34 (d) "Qualified local taxing district" means a city: 35 (i) That was eligible for streamlined sales tax mitigation 36 payments of at least fifty thousand dollars under RCW 82.14.500 in 37 calendar year 2018, based on the calculation and analysis required 38 under RCW 82.14.500(3)(a); and p. 2 HB 1948 1 (ii) That has a continued local sales tax revenue loss as a 2 result of the sourcing provision of the streamlined sales and use tax 3 agreement under this title, as determined by the department. 4 (e) "Voluntary compliance revenue" means the local sales tax 5 revenue gain to each local taxing jurisdiction reported to the 6 department from persons registering through the central registration 7 system authorized under the agreement. 8 (4) This section expires January 1, 2030. 9 NEW SECTION. Sec, 3. A new section is added to chapter 82.14 10 ROW to read as follows: 11 The manufacturing and warehousing job centers account is created 12 in the state treasury. All receipts from section 2 of this act must 13 be deposited into the account. Moneys in the account may be spent 14 only after appropriation. Expenditures from the account may be used 15 only for the purpose of mitigating the negative fiscal impacts to 16 local taxing jurisdictions as a result of RCW 82.14.490 and section 17 502, chapter 6, Laws of 2007. END --- p. 3 HB 1948 Washington State Legislature Page 1 of 1 1 Supporting warehousing and manufacturing job centers. Sponsors: Das, Padden, Keiser, Wilson, C., Dhingra, Mullet, Zeiger, Hasegawa Companion Bill: H Bill History 1948 2019 REGULAR SESSION Feb 7 Mar 1 First reading, referred to Ways & Means. Scheduled for public hearing in the Senate Committee on Ways & Means at 1:30 PM (Subject to change). https://app.leg.wa.gov/billsummary?BillNumber=5862&Chamber=Senate&Year=2019 2/25/2019 S-1486.1 SENATE BILL 5862 State of Washington 66th Legislature 2019 Regular Session By Senators Das, Padden, Keiser, Wilson, C., Dhingra, Mullet, Zeiger, and Hasegawa Read first time 02/07/19. Referred to Committee on Ways & Means. 1 AN ACT Relating to supporting warehousing and manufacturing job 2 centers; adding new sections to chapter 82.14 RCW; creating a new 3 section; and providing an expiration date. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 5 NEW SECTION. Sec. 1. The legislature recognizes that changes in 6 sales tax sourcing laws created a significant negative fiscal impact 7 on communities with a concentration of warehousing, manufacturing, 8 and shipping. These communities are vital job centers to our state 9 economy. Furthermore, the infrastructure demands to support these 10 industries are significant. The legislature hereby creates the 11 warehousing and manufacturing job center assistance program to 12 provide these communities with revenue to mitigate for the negative 13 fiscal impact of changes in sales tax sourcing laws, and fund 14 important infrastructure to maintain these key job centers. 15 NEW SECTION. Sec. 2. A new section is added to chapter 82.14 16 RCW to read as follows: 17 (1) In order to mitigate local sales tax revenue net losses as a 18 result of the sourcing provisions of the streamlined sales and use 19 tax agreement under this title, the state treasurer, on July 1, 2019, 20 and each July 1st thereafter through July 1, 2030, must transfer into p. 1 SB 5862 1 the manufacturing and warehousing job centers account from the 2 general fund the sum required to mitigate actual net losses as 3 determined under this section. 4 (2) The department must determine each qualified local taxing 5 jurisdiction's annual loss. The department must determine annual 6 losses by comparing at least twelve months of data from tax return 7 information and tax collections for each qualified local taxing 8 jurisdiction before and after July 1, 2008. The department is not 9 required to determine annual losses on a recurring basis, but may 10 make any adjustments to annual losses as it deems proper as a result 11 of the annual reviews. Each calendar quarter, distributions must be 12 made from the manufacturing and warehousing job centers account by 13 the state treasurer on the last working day of the calendar quarter, 14 as directed by the department, to each qualified local taxing 15 jurisdiction, for losses in respect to taxes imposed under the 16 authority of RCW 82.14.390, in an amount representing one-fourth of 17 the jurisdiction's annual loss reduced by voluntary compliance 18 revenue reported during the previous calendar quarter and marketplace 19 facilitator/remote seller revenue reported during the previous 20 calendar quarter. 21 (3) The definitions in this subsection apply throughout this 22 section unless the context clearly requires otherwise. 23 (a) "Loss" or "losses" means the local sales and use tax revenue 24 reduction to a local taxing jurisdiction resulting from the sourcing 25 provisions in RCW 82.14.490 and section 502, chapter 6, Laws of 2007. ' 26 (b) "Marketplace facilitator/remote seller revenue" means the 27 local sales and use tax revenue gain, including taxes voluntarily 28 remitted and taxes collected from consumers, to each local taxing 29 jurisdiction from part II of chapter 28, Laws of 2017 3rd sp. sess. 30 as estimated by the department in RCW 82.14.500(6). 31 (c) "Net loss" or "net losses" means a loss offset by any 32 voluntary compliance revenue and marketplace facilitator/remote 33 seller revenue. 34 (d) "Qualified local taxing district" means a city: 35 (i) That was eligible for streamlined sales tax mitigation 36 payments of at least fifty thousand dollars under RCW 82.14.500 in 37 calendar year 2018, based on the calculation and analysis required 38 under RCW 82.14.500(3)(a); and p. 2 SB 5862 1 (ii) That has a continued local sales tax revenue loss as a 2 result of the sourcing provision of the streamlined sales and use tax 3 agreement under this title, as determined by the department. 4 (e) "Voluntary compliance revenue" means the local sales tax 5 revenue gain to each local taxing jurisdiction reported to the 6 department from persons registering through the central registration 7 system authorized under the agreement. 8 (4) This section expires January 1, 2030. 9 NEW SECTION, Sec. 3 A new section is added to chapter 82.14 10 RCW to read as follows: 11 The manufacturing and warehousing job centers account is created 12 in the state treasury. All receipts from section 2 of this act must 13 be deposited into the account. Moneys in the account may be spent 14 only after appropriation. Expenditures from the account may be used 15 only for the purpose of mitigating the negative fiscal impacts to 16 local taxing jurisdictions as a result of RCW 82.14.490 and section 17 502, chapter 6, Laws of 2007. --- END - p. 3 SB 5862