HomeMy WebLinkAboutFIN 2020-12-14 Item 1B - Report - 2020 3rd Quarter Sales Tax and Miscellaneous Revenue
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Vicky Carlsen, Finance Director
BY: Aaron Williams, Fiscal Coordinator
CC: Mayor Ekberg
DATE: December 14, 2020
SUBJECT: Sales Tax & Misc. Revenues – 3rd 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.
Through September sales taxes are $2.7M behind the total collected for the same period of the prior year.
Industries such as retail trade and services (incl. restaurants) have been significantly impacted, accounting for
the majority of the total decline. At the same time, construction sales taxes have remained strong and exceed
the same period of the prior year by $332k.
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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.
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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 $332k which is helping offset 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
$2.6M decline from the prior year.
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Traditionally the top three categories have been (452) General Merchandise, (722) Food Services and (448)
Clothing & Accessories. During the ongoing pandemic and the mandated economic shut-downs, many of these
businesses experienced significant declines in taxable sales. Construction of Builidngs has been performing
strong and is currently in the top position with nearly $1.4M in taxes collected year-to-date.
The chart above shows the ten largest declines compared to the prior year.
Many of these categories were directly impacted by the economic shutdowns and changes to consumer
shopping habits. The decline in the Motor Vehicle and Parts Dealer category is related to one-time revenues
received in 2019 from bus deliveries.
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YTD YTD
NAICS CONSTRUCTION 19 TOTAL 19 YTD 20 YTD % Diff NAICS AUTOMOTIVE 19 TOTAL 19 YTD 20 YTD % Diff
236 Construction of Buildings 1,670,033 1,084,953 1,366,417 25.9% 441 Motor Vehicle & Parts Dealer 963,914 822,042 341,939 -58.4%
237 Heavy & Civil Construction 89,166 50,102 81,323 62.3% 447 Gasoline Stations 99,694 74,536 77,320 3.7%
238 Specialty Trade Contractors 459,712 343,364 362,391 5.5%TOTAL AUTOMOTIVE 1,063,607$ 896,578$ 419,259$
TOTAL CONSTRUCTION 2,218,910$ 1,478,420$ 1,810,131$ ($477,319) -53.2%
331,711$ 22.4%
NAICS RETAIL TRADE 19 TOTAL 19 YTD 20 YTD % Diff
YTD 442 Furniture & Home Furnishings 565,878 415,360 358,788 -13.6%
MANUFACTURING 19 TOTAL 19 YTD 20 YTD % Diff 443 Electronics & Appliances 1,149,541 771,021 567,897 -26.3%
311 Food Manufacturing 26,862 20,206 17,135 -15.2% 444 Building Material & Garden 835,211 634,721 752,984 18.6%
312 Beverage & Tobacco Products 12,837 9,661 7,005 -27.5% 445 Food & Beverage Stores 311,945 231,615 216,982 -6.3%
313 Textile Mills 130 27 1,620 5823.5% 446 Health & Personal Care 274,638 190,037 132,283 -30.4%
314 Textile Product Mills 11,628 9,626 6,627 -31.2% 448 Clothing & Accessories 1,996,280 1,397,686 734,064 -47.5%
315 Apparel Manufacturing 367 300 666 121.8% 451 Sporting Goods, Hobby, Books 508,525 361,269 283,167 -21.6%
316 Leather & Allied Products 73 41 154 272.0% 452 General Merchandise Stores 2,167,481 1,541,520 1,250,514 -18.9%
321 Wood Product Manufacturing 3,105 1,984 31,162 1470.9% 453 Miscellaneous Store Retailers 857,091 607,160 572,800 -5.7%
322 Paper Manufacturing 22,299 16,281 14,336 -11.9% 454 Nonstore Retailers 137,655 92,654 143,425 54.8%
323 Printing & Related Support 25,202 15,423 21,545 39.7%TOTAL RETAIL TRADE 8,804,245$ 6,243,042$ 5,012,907$
324 Petroleum & Coal Products 103 83 31 -63.0%($1,230,136) -19.7%
325 Chemical Manufacturing 4,124 3,544 2,550 -28.0%
326 Plastic & Rubber Products 4,068 3,326 2,746 -17.4%YTD
327 Nonmetallic Mineral Products 5,827 4,823 7,155 48.4%SERVICES 19 TOTAL 19 YTD 20 YTD % Diff
331 Primary Metal Manufacturing 872 726 207 -71.4% 51X Information 988,506 747,961 469,239 -37.3%
332 Fabricated Metal Mfg Products 6,122 4,223 4,960 17.5% 52X Finance & Insurance 65,075 46,897 79,040 68.5%
333 Machinery Manufacturing 4,188 3,581 3,007 -16.0% 53X Real Estate, Rental, Leasing 707,128 518,207 501,481 -3.2%
334 Computer & Electronic Products 14,628 10,458 10,593 1.3% 541 Professional, Scientific, Tech 704,072 426,353 510,473 19.7%
335 Electric Equipment, Appliances 18,412 13,293 19,079 43.5% 551 Company Management 53 53 0 0.0%
336 Transportation Equipment Mfg 41,256 36,431 3,329 -90.9% 56X Admin, Supp, Remed Svcs 325,783 236,976 233,758 -1.4%
337 Furniture & Related Products 7,015 5,730 3,388 -40.9% 611 Educational Services 5,953 4,635 3,627 -21.7%
339 Miscellaneous Manufacturing 29,576 18,244 16,281 -10.8% 62X Health Care Social Assistance 85,567 54,353 58,803 8.2%
TOTAL MANUFACTURING 238,694$ 178,010$ 173,577$ 71X Arts & Entertainment 314,765 243,698 79,899 -67.2%
($4,434) -2.5%721 Accommodation 744,823 585,862 195,973 -66.5%
722 Food Services, Drinking Places 2,080,421 1,551,243 952,284 -38.6%
YTD 81X Other Services 227,568 176,460 109,796 -37.8%
TRANSPORTATION & WAREHOUSING 19 TOTAL 19 YTD 20 YTD % Diff 92X Public Administration 14,275 10,722 12,787 19.3%
481 Air Transportation 0 0 -2,482 0.0%TOTAL SERVICES 6,263,989$ 4,603,419$ 3,207,159$
482 Rail Transportation 46 42 88 110.0%($1,396,260) -30.3%
483 Water Transportation 305 279 152 -45.4%
484 Truck Transportation 1,916 1,419 1,556 9.7%
485 Transit and Ground Passengers 859 671 448 -33.3%YTD
487 Scenic and Sightseeing Tran 1,338 1,076 197 -81.7%MISCELLANEOUS 19 TOTAL 19 YTD 20 YTD % Diff
488 Transportation Support 55,956 36,779 104,176 183.2% 000 Unknown 0 0 0 0.0%
491 Postal Services 797 613 526 -14.3% 111-115 Agriculture, Forestry, Fishing 1,991 506 521 3.0%
492 Couriers & Messengers 2,494 1,738 1,441 -17.1% 211-221 Mining & Utilities 1,235 821 340 -58.6%
493 Warehousing & Storage 1,845 1,482 3,396 129.1% 999 Unclassifiable Establishments 104,627 86,425 128,557 48.8%
TOTAL TRANSP & WHSING 65,555$ 44,100$ 109,498$ MISCELLANEOUS TOTAL 107,853$ 87,752$ 129,418$
$65,398 148.3%$41,666 47.5%
YTD
WHOLESALE TRADE 19 TOTAL 19 YTD 20 YTD % Diff
423 Whls Trade-Durable Goods 987,675 729,539 664,348 -8.9%YTD
424 Whls Trade-Nondurable Goods 163,323 119,711 110,703 -7.5%19 TOTAL 19 YTD 20 YTD % Diff
425 Wholesale Electronic Markets 2,609 2,219 2,028 -8.6%GRAND TOTALS $19,916,461 $14,382,791 $11,639,027
WHOLESALE TRADE TOTAL 1,153,607$ 851,470$ 777,079$ ($2,743,764) -19.08%
($74,391) -8.7%($3,075,475) -23.83%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-SEPT 2020 Sales Taxes (Received in Mar-Nov '20)
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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.
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