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Home My WebLink AboutFIN 2020-06-22 Item 1A - Report - 2020 1st Quarter Sales Tax ReportCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: June 22, 2020 SUBJECT: Sales Tax & Misc Revenues - 1st Quarter 2020 Year Over Year Sales Tax Comparison: Schedule I - Sales Tax in $1.000's 2019 Actual 2020 Actual YOYChange I I I I I Other I - Month - j Other j Total j Other j Total Construction j Industries j Total Collect- ed Recd Construo-' Industries ' tion j 1 Construo-' Industries ' tion I I ,amount �S ,amount I {� ,amount I Jan Mar $ 140 j $ 1.225 j S 1.365 $ 145 j $ 1.313 j $ 1.459 $ 6 4�� $ 89 7% $ 94 7� Feb .Apr 62 1.252 1.314 138 1.001 1.138 75 121%: [251. -20% (175" -'13% Mar May 102 1.565 1.668 203 1.022 1.315 191 187%! [543:: -35% [352. -21% 0-1 Totals $ 304 1 4.042 1 $ 4,346 $ 576 1 3.336 1 $ 3,912 $ 272 89%1 [705:1 -17%1 $ (4341 -10% .Apr Jun 1191 1.4471 1.566 I I I I [.1ay Jul 147 1.356 1.503 Jun AuQ 2041 1.6471 1.051 I I I I O-2 Totals S 470 ' 4.450 ' $ 4,920 $ - - ' $ $ - 0%' - M $ 0°% Jul Sep 16v ; 1.527 ; 1.692 .Aug Oct 230 1.412 1.642 I I I I Sep Nov 3001 1.4741 1.783 Q-3TotaIs $ 704 4.4-13 $ 5,117 $ - - $ $ - 0%: - 0%: $ 0% Oct Dec 310 1.400 1.717 Nov Jan 1641 1.5141 1.677 I I I I Dec Feb 267 ' 1.871 ' 2.130 Ct-4Totalsl S 740 ; 4,793 ; $ 5,534 $ - - ; $ $ - 0��; - 09b; $ 0!o- Totals S 2.2'10 1 '17,690 1 $19,916 $ 576 1 3.336 1 $ 3,912 272 '12%1 [705:, -4°%1 $ �434} -2% The global coronavirus pandemic began impacting businesses and city revenues during the second half of the first quarter. By the end of March many businesses were closed due to the stay home orders, which continue through much of the second quarter of 2020. Sales Taxes collected in the first quarter of 2020 totaled $3.9 million, which is down ($434k), or -10%, compared to the first quarter of the prior year. Construction sales taxes remain strong; the first quarter collections totaled $576k, an increase of $272k or 89% compared to the first quarter of the prior year. l INFORMATIONAL MEMO Page 2 Budget to Actual Sales Tax Comparison: Schedule I - Sales Tax in $1.�]�]�]'s 2019 2020 Variance - Month - .actual Allocated ActL131 Collected Recd Bud et Amt Jan Mar $ 1.365 S 1.364 $ 1.459 94 7s Feb Apr 1.314 S 1.313 $ 1.130 (176" -13-. Mar f-1ay 1.668 $ 1.667 $ 1.315 (352, -21� 0-1 Totals $ 4,346 $ 4,345 $ 3,912 $ (433} -10% Apr Jun 1.566 $ 1.566 rylay Jul 1.503 $ 1.503 Jun Aug 1.851 $ 1.850 Q-2 Totals $ 4,920 $ 4,918 $ - $ i)== Jul Sep 1.692 $ 1.692 Aug Oct 1.642 $ 1.641 Sep Nov 1.703 $ 1.703 Q-3 Totals $ 5,117 $ 5,116 $ - $ i]== Oct Dec 1.717 $ 1.717 Nov Jan 1.677 $ 1.677 Dec Feb 2.130 $ 2.139 0-4 Totals $ 5,534 $ 5,533 $ - $ Q=: Totals S 19.916 S 19.911 $ 3.912 S The 2020 budget for sales taxes is $19.911 million, which is nearly equal to total collections for 2019. Through the first quarter, sales taxes are down by ($433k), which equates to approximately 2% of the annual budget. 2 INFORMATIONAL MEMO Page 3 Change YTD by Category The chart above compares the prior year-to-date totals to the current year-to-date totals for the eight major categories of sales tax. Construction sales taxes are up significantly compared to the prior year; this is helping offset some declines in other categories. Automotive is the largest decline compared to the prior year; this is due to one-time revenues received in 2019. Retail Trade, Wholesale Trade and Services are also down compared the prior year; these groups were all impacted by the COVID shutdowns. 3 INFORMATIONAL MEMO Page 4 Schedule II - YTD sales tax collections - ton ten industry classifications YTa YTD dollar % Group Name Current Prior Diff. Diff. 2M Construction of Buildings S 483,566 S 204,336 5 279,230 136.65% 452 General Merchandise Stores S 406,980 S 437,002 $ (30,022) -6.37% 722 Food Services_ Drinking Places S 317,959 3 4,30,139 3 (162.130) -33.78% 448 Clothing and Accessories S 2B9,921 5 396,194 $ (126.269) -31.87% 443 Electronics and Appliances S 227,388 5 244,269 3 (16,881) -6.91% 444 Building Material and Garden S 194,755 S 1,31,644 3 13,111 7.22% 423 Wholesale Trade, Durable Goods S 193,718 S 237,179 3 (43,461) -18.32% 532 Rental and Leasing Services S 1SS,&09 S 150,903 3 37,906 25.12% 541 Professional_ Scientific. Tech S 133,5M 3 161,117 3 22,466 13.94% 453 Miscellaneors Store Retailers S 171,136 $ 202,394 3 (31,258) -15.44% Through the first quarter, Construction sales taxes are the top category, which is usually a little further down the list. With the closure of the mall and other retail shopping, many of these categories are already reflecting declines in taxes. Schedule III - YTIJ ten largest declines t$) in sales tax collections by industry class YTa YTD Dollar % Group Name Current Prior Diff. Diff. 441 Motor Vehicle and Parts Dealer S 75,965 3 417,917 S (341,952} -81.82% 722 Food Services, Drinking Places S 317,959 5 430,139 5 (162,130) -33.78% 448 Clothing and Accessories S 26-9.921 3 396,194 3 (126.269) -31.37% 721 Accommodation S 75,304 3 155,335 3 (W,031) -51.52% 423 Wholesale Trade, Durable Goods s 193,718 3 237,179 3 (43,461) -18.32% 713 Amusement, Gambling_ and Rec S 36,411 3 67,724 3 (31,313) -46.24% 453 Miscellaneous Store Retailers S 171,136 3 202,394 3 (31,258) -15.44% 452 General Merchandise Stores S 406,984 3 437,002 3 (30,022) -6.87% 451 Sporting Goods. Hobby. Books S 79,296 5 99,599 S (20,304) -20.39% 443 Electronics and Appliances S 227,388 3 244,269 3 (16,881) -6.91% The chart above shows the ten largest declines compared to the prior year. Industry code 441-Motor Vehicles and Parts Dealer totals for 2019 includes $245k of one-time revenues, contributing to the significant decrease. 11 INFORMATIONAL MEMO Page 5 SALES TAX SUMMARY Q1 2020 Sales Taxes (Received in Mar -May '20) YTD YTD NAICS CONSTRUCTION 19 TOTAL 19 YTD 20 YTD % Diff NAICS AUTOMOTIVE 19 TOTAL 19 YTD 20 YTD % Diff 236 Construction of Buildings 1,670,033 204,336 483,566 136.7% 441 Motor Vehicle & Parts Dealer 963,914 417,917 75,965 -81.8% 237 Heavy & Civil Construction 89,166 9,318 13,238 42.1 % 447 Gasoline Stations 99,694 21,260 21,615 1.7/ 238 Specialty Trade Contractors 459,712 90,569 79,085 -12.7% TOTAL AUTOMOTIVE $ 1,063,607 $ 439,178 $ 97,580 TOTAL CONSTRUCTION $ 2,218,910 $ 304,223 $ 575,890 Overall Automotive Change from Previous Year ($341,598) -77.8% Overall Construction Change from Previous Year $ 271,667 89.3% YTD MANUFACTURING 19 TOTAL 19 YTD 20 YTD % Diff 311 Food Manufacturing 26,862 6,078 6,410 5.5% 312 Beverage & Tobacco Products 12,837 2,466 3,951 60.2 % 313 Textile Mills 130 8 1,493 19621.5% 314 Textile Product Mills 11,628 3,744 2,382 -36.4% 315 Apparel Manufacturing 367 129 50 -61.4% 316 Leather & Allied Products 73 20 9 -55.5 % 321 Wood Product Manufacturing 3,105 619 18,392 2870.3% 322 Paper Manufacturing 22,299 5,535 5,023 -9.3% 323 Printing & Related Support 25,202 3,758 7,464 98.6% 324 Petroleum & Coal Products 103 23 23 -1.5 % 325 Chemical Manufacturing 4,124 1,121 458 -59.2% 326 Plastic & Rubber Products 4,068 2,129 362 -83.0% 327 Nonmetallic Mineral Products 5,827 1,187 1,121 -5.6% 331 Primary Metal Manufacturing 872 513 36 -93.1 % 332 Fabricated Metal Mfg Products 6,122 1,115 2,259 102.6% 333 Machinery Manufacturing 4,188 1,115 580 -47.9% 334 Computer & Electronic Products 14,628 3,312 3,348 1.1 % 335 Electric Equipment, Appliances 18,412 1,214 3,178 161.9% 336 Transportation Equipment Mfg 41,256 10,475 369 -96.5% 337 Furniture & Related Products 7,015 2,385 1,810 -24.1% 339 Miscellaneous Manufacturing 29,576 6,315 6,814 7.9% TOTAL MANUFACTURING $ 238,694 $ 53,263 $ 65,531 Overall Manufacturing Change from Previous Year $1$268 23.0% YTD TRANSPORTATION & WAREHOUSING 19 TOTAL 19 YTD 20 YTD % Diff 481 Air Transportation 0 0 -2,482 0.0% 482 Rail Transportation 46 8 13 50.0% NAICS RETAIL TRADE 19 TOTAL 19 YTD 20 YTD % Diff 442 Furniture & Home Furnishings 565,878 117,035 111,316 -4.9% 443 Electronics & Appliances 1,149,541 244,269 227,388 -6.9% 444 Building Material & Garden 835,211 181,644 194,755 7.2% 445 Food & Beverage Stores 311,945 68,874 67,594 -1.9 % 446 Health & Personal Care 274,638 67,932 54,549 -19.7% 448 Clothing & Accessories 1,996,280 396,190 269,921 -31.9% 451 Sporting Goods, Hobby, Books 508,525 99,599 79,296 -20.4% 452 General Merchandise Stores 2,167,481 437,002 406,980 -6.9% 453 Miscellaneous Store Retailers 857,091 202,394 171,136 -15.4% 454 Nonstore Retailers 137,655 29,719 32,270 8.6% TOTAL RETAIL TRADE $ 8,804,245 $ 1,844,657 $ 1,615,204 Overall General Retail Change from Previous Year ($229,453) -12.4% YTD SERVICES 19 TOTAL 19 YTD 20 YTD % Diff 51X Information 988,506 190,225 176,273 -7.3% 52X Finance & Insurance 65,075 -3,530 26,136 -840.3% 53X Real Estate, Rental, Leasing 707,128 158,072 193,847 22.6% 541 Professional, Scientific, Tech 704,072 161,117 183,583 13.9% 551 Company Management 53 4 0 0.0% 56X Admin, Supp, Remed Svcs 325,783 77,409 79,329 2.5% 611 Educational Services 5,953 1,330 1,644 23.6% 62X Health Care Social Assistance 85,567 18,459 20,740 12.4% 71X Arts & Entertainment 314,765 74,379 40,280 -45.8% 721 Accommodation 744,823 155,335 75,304 -51.5% 722 Food Services, Drinking Places 2,080,421 480,139 317,959 -33.8% 81X Other Services 227,568 61,278 37,595 -38.6% 92X Public Administration 14,275 3,497 7,449 113.0% TOTAL SERVICES $ 6,263,989 $ 1,377,712 $ 1,160,140 Overall Services Change from Previous Year ($217,572) -15.8% 483 Water Transportation 305 245 60 -75.6% 484 Truck Transportation 1,916 755 141 -81.3% 485 Transit and Ground Passengers 859 434 368 -15.2 % YTD 487 Scenic and Sightseeing Tran 1,338 252 197 -21.9% MISCELLANEOUS 19 TOTAL 19 YTD 20 YTD % Diff 488 Transportation Support 55,956 12,948 87,707 577.4% 000 Unknown 0 0 0 0.0% 491 Postal Services 797 206 195 -5.5% 111-115 Agriculture, Forestry, Fishing 1,991 147 335 127.7% 492 Couriers & Messengers 2,494 955 529 -44.6% 211-221 Mining & Utilities 1,235 289 124 -57.1 % 493 Warehousing & Storage 1,845 407 663 62.8% 999 Unclassifiable Establishments 104,627 34,834 78,666 125.8% TOTAL TRANSP & WHSING $ 65,555 $ 16,211 $ 87,390 MISCELLANEOUS TOTAL $ 107,853 $ 35,270 $ 79,125 Overall Transportation Change from Previous Year $71,180 439.1% Overall Miscellaneous Change from Previous Year $43,855 124.3% YTD WHOLESALE TRADE 19 TOTAL 19 YTD 20 YTD % Diff 423 Whls Trade -Durable Goods 987,675 237,179 193,718 -18.3% 424 Whls Trade -Nondurable Goods 163,323 37,471 36,665 -2.2% 425 Wholesale Electronic Markets 2,609 772 971 25.7% WHOLESALE TRADE TOTAL $ 1,153,607 $ 275,423 $ 231,354 Overall Wholesale Change from Previous Year ($44,068) -16.0% YTD 18 TOTAL 18 YTD 19 YTD % Diff GRAND TOTALS $19,916,461 $4,345,937 $3,912,215 Grand Total Change from Previous Year ($433,722) -9.98% Grand Total Change from Previous Year- Without New Construction ($705,389)-17.45% 5 INFORMATIONAL MEMO Page 6 Schedule IV - Gambling Tax -:, 0 2020 INCREASE fDEOREA E) Quarter 2019 2020 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount % Q1 $ 999.638 $ 738.821 $ 1.116.026 $ f260.818:; -26% $ (377204) -34% Q2 947.463 1.057.776 Q3 1.029.502 1.149.366 Q4 880.337 982.834 Totals 3,856,941 138,821 $ 4,306,OOU 26D,818 -26% 377,204 -34% Returns have been received for all casino/card rooms for 2020-Q1. Schedule V - Admissions Tax 11p; (d) 2020 INCREASE (DECREASE) Quarter 2019 2020 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount % Q1 $ 272.621 $ 180.899 $ 247.790 $ (91.622) -34% $ (66.891) -27% Q2 261.286 228.481 Q3 214.495 196-029 Q4 218.632 198.TOO Totals $ 956,833 $ 180,899 $ 870,UOO $ 91,62 -34% $ 66,891 -27% Three payments have been identified as not having been received yet. This could improve the Q1 returns, but due to the shutdowns in March, the remaining amounts likely will be less than $10k total. Schedule VI - Telecommunications Utility Tax -'n; (d) 2020 INCREASE (DECREASE) Quarter 2019 2020 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount % Q1 $ 236.604 $ 212.326 $ 340.648 $ (24278) -10% $ (128.322) -38% Q2 228.313 328.710 Q3 227.053 326.897 Q4 255.078 367.246 Totals 947,048 212,326 1,363,500 $ (24,278) -10% 1128,32.4 -38% The Telecommunications tax has been on a downward trend over the past few years. The trend is reflective of consumer preferences and changes in the communications industry. (a) Gambling tax includes card games, punch boards, pull tabs and amusement games. (b) Excludes golf course admission tax. (c) Telecommunications Utility tax includes cellular, pager and telephone usage. (d) Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter.