HomeMy WebLinkAboutFIN 2020-09-14 Item 1D - Report - 2020 2nd Quarter Sales Tax and Miscellaneous Revenue ReportCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO:
FROM:
BY:
CC:
DATE:
Finance Committee
Vicky Carlsen, Finance Director
Aaron Williams, Fiscal Coordinator
Mayor Ekberg
September 4, 2020
SUBJECT: Sales Tax & Misc. Revenues – 2nd Quarter 2020
Year Over Year Sales Tax Comparison:
The global COVID-19 pandemic began impacting businesses and city revenues late in the first quarter. By the
end of March many businesses were closed due to the stay home orders, which continued through much of the
second quarter of 2020.
Through the first half of the year, sales taxes are $2M behind the total collected for first half of the prior year.
Industries such as retail trade and services have been significantly impacted, accounting for much of the total
decline. At the same time, construction sales taxes have remained strong exceed the first half of the prior year
by $416k.
17
INFORMATIONAL MEMO
Page 2
Budget to Actual Sales Tax Comparison:
The 2020 adopted budget for sales taxes is $19.911 million, which is nearly equal to total collections for 2019.
This budget has been revised to reflect a $7.6M anticipated impact from the COVID-19 pandemic; for a total
adjusted budget of $12.3M.
18
INFORMATIONAL MEMO
Page 3
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.
The decline in Automotive is related to one-time revenues received in 2019.
Retail Trade and Services were the hardest hit categories from the economic shutdowns and reflect a combined
$2M decline from the prior year.
19
INFORMATIONAL MEMO
Page 4
Traditionally the top three categories have been General Merchandise, Food Services and Clothing &
Accessories. During the ongoing pandemic and the mandated economic shut-downs, many of these businesses
experienced significant declines in taxable sales. Meanwhile, the Construction sector has been performing
strong and is currently in the top position with nearly $950k of taxes collected year-to-date.
The chart above shows the ten largest declines compared to the prior year.
Many of these categories were directly impacted by the economic shutdowns and changes to consumer
shopping habits. The decline in the Motor Vehicle and Parts Dealer category is related to one-time revenues
received in 2019 from bus deliveries.
20
INFORMATIONAL MEMO
Page 5
YTD YTD
NAICS CONSTRUCTION 19 TOTAL 19 YTD 20 YTD % Diff NAICS AUTOMOTIVE 19 TOTAL 19 YTD 20 YTD % Diff
236 Construction of Buildings 1,670,033 546,031 947,616 73.5% 441 Motor Vehicle & Parts Dealer 963,914 682,519 197,854 -71.0%
237 Heavy & Civil Construction 89,166 23,337 37,162 59.2% 447 Gasoline Stations 99,694 47,419 50,032 5.5%
238 Specialty Trade Contractors 459,712 204,516 205,424 0.4%TOTAL AUTOMOTIVE 1,063,607$ 729,938$ 247,887$
TOTAL CONSTRUCTION 2,218,910$ 773,884$ 1,190,202$ ($482,051) -66.0%
416,319$ 53.8%
NAICS RETAIL TRADE 19 TOTAL 19 YTD 20 YTD % Diff
YTD 442 Furniture & Home Furnishings 565,878 264,868 193,726 -26.9%
MANUFACTURING 19 TOTAL 19 YTD 20 YTD % Diff 443 Electronics & Appliances 1,149,541 493,413 333,279 -32.5%
311 Food Manufacturing 26,862 12,903 11,649 -9.7% 444 Building Material & Garden 835,211 415,488 471,466 13.5%
312 Beverage & Tobacco Products 12,837 6,150 5,317 -13.5% 445 Food & Beverage Stores 311,945 148,533 138,579 -6.7%
313 Textile Mills 130 13 1,537 11572.0% 446 Health & Personal Care 274,638 139,187 75,833 -45.5%
314 Textile Product Mills 11,628 5,571 4,429 -20.5% 448 Clothing & Accessories 1,996,280 871,694 380,917 -56.3%
315 Apparel Manufacturing 367 261 283 8.6% 451 Sporting Goods, Hobby, Books 508,525 226,448 152,679 -32.6%
316 Leather & Allied Products 73 34 53 54.0% 452 General Merchandise Stores 2,167,481 917,603 712,051 -22.4%
321 Wood Product Manufacturing 3,105 1,121 30,558 2626.3% 453 Miscellaneous Store Retailers 857,091 405,508 346,913 -14.4%
322 Paper Manufacturing 22,299 10,828 9,556 -11.7% 454 Nonstore Retailers 137,655 60,604 91,701 51.3%
323 Printing & Related Support 25,202 7,283 13,956 91.6%TOTAL RETAIL TRADE 8,804,245$ 3,943,346$ 2,897,143$
324 Petroleum & Coal Products 103 54 27 -50.4%($1,046,203) -26.5%
325 Chemical Manufacturing 4,124 2,215 1,299 -41.3%
326 Plastic & Rubber Products 4,068 2,720 1,158 -57.4%YTD
327 Nonmetallic Mineral Products 5,827 4,175 3,374 -19.2%SERVICES 19 TOTAL 19 YTD 20 YTD % Diff
331 Primary Metal Manufacturing 872 641 164 -74.5% 51X Information 988,506 536,851 321,594 -40.1%
332 Fabricated Metal Mfg Products 6,122 2,810 3,361 19.6% 52X Finance & Insurance 65,075 26,139 49,702 90.1%
333 Machinery Manufacturing 4,188 2,129 2,388 12.2% 53X Real Estate, Rental, Leasing 707,128 348,293 314,835 -9.6%
334 Computer & Electronic Products 14,628 8,914 7,451 -16.4% 541 Professional, Scientific, Tech 704,072 292,504 371,750 27.1%
335 Electric Equipment, Appliances 18,412 7,095 14,183 99.9% 551 Company Management 53 37 0 0.0%
336 Transportation Equipment Mfg 41,256 23,928 824 -96.6% 56X Admin, Supp, Remed Svcs 325,783 157,607 154,524 -2.0%
337 Furniture & Related Products 7,015 4,323 2,399 -44.5% 611 Educational Services 5,953 2,851 2,440 -14.4%
339 Miscellaneous Manufacturing 29,576 12,157 12,721 4.6% 62X Health Care Social Assistance 85,567 36,842 33,833 -8.2%
TOTAL MANUFACTURING 238,694$ 115,326$ 126,688$ 71X Arts & Entertainment 314,765 156,286 56,363 -63.9%
$11,362 9.9%721 Accommodation 744,823 354,126 138,924 -60.8%
722 Food Services, Drinking Places 2,080,421 1,011,584 602,223 -40.5%
YTD 81X Other Services 227,568 123,070 70,313 -42.9%
TRANSPORTATION & WAREHOUSING 19 TOTAL 19 YTD 20 YTD % Diff 92X Public Administration 14,275 7,800 10,632 36.3%
481 Air Transportation 0 0 -2,482 0.0%TOTAL SERVICES 6,263,989$ 3,053,990$ 2,127,131$
482 Rail Transportation 46 25 13 -50.0%($926,859) -30.3%
483 Water Transportation 305 264 113 -57.0%
484 Truck Transportation 1,916 1,070 778 -27.3%
485 Transit and Ground Passengers 859 566 408 -28.0%YTD
487 Scenic and Sightseeing Tran 1,338 597 197 -67.0%MISCELLANEOUS 19 TOTAL 19 YTD 20 YTD % Diff
488 Transportation Support 55,956 24,797 94,983 283.0% 000 Unknown 0 0 0 0.0%
491 Postal Services 797 423 336 -20.6% 111-115 Agriculture, Forestry, Fishing 1,991 214 410 91.7%
492 Couriers & Messengers 2,494 1,341 637 -52.5% 211-221 Mining & Utilities 1,235 676 233 -65.5%
493 Warehousing & Storage 1,845 904 2,081 130.2% 999 Unclassifiable Establishments 104,627 60,124 103,055 71.4%
TOTAL TRANSP & WHSING 65,555$ 29,988$ 97,063$ MISCELLANEOUS TOTAL 107,853$ 61,014$ 103,698$
$67,076 223.7%$42,684 70.0%
YTD
WHOLESALE TRADE 19 TOTAL 19 YTD 20 YTD % Diff
423 Whls Trade-Durable Goods 987,675 481,138 402,733 -16.3%YTD
424 Whls Trade-Nondurable Goods 163,323 75,352 68,276 -9.4%19 TOTAL 19 YTD 20 YTD % Diff
425 Wholesale Electronic Markets 2,609 1,708 1,756 2.8%GRAND TOTALS $19,916,461 $9,265,684 $7,262,578
WHOLESALE TRADE TOTAL 1,153,607$ 558,198$ 472,765$ ($2,003,105) -21.62%
($85,433) -15.3%($2,419,424) -28.49%Grand Total Change from Previous Year - Without New Construction
Overall Miscellaneous Change from Previous Year
Overall Services Change from Previous Year
Overall Wholesale Change from Previous Year
Overall Construction Change from Previous Year
Overall Automotive Change from Previous Year
Overall General Retail Change from Previous Year
Overall Manufacturing Change from Previous Year
Overall Transportation Change from Previous Year
Grand Total Change from Previous Year
SALES TAX SUMMARY
JAN-JUN 2020 Sales Taxes (Received in Mar-Aug '20)
21
INFORMATIONAL MEMO
Page 6
Gambling, Admission and Telecommunications Tax revenue totals in the charts below reflect the quarter in
which the economic activity occurred (accrual basis) as opposed to when the revenue is received (cash basis).
The budgets for Gambling and Admissions Taxes were revised down based on the anticipated impacts of the
economic shutdowns related to the ongoing pandemic.
The Telecommunications Utility Tax was not anticipated to have measurable impacts related to the coronavirus
pandemic; this 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) Telecommunications Utility tax includes cellular, pager and telephone usage.
(c) Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter.
22