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HomeMy WebLinkAboutFS 2012-09-18 Item 2B - Report - 2012 2nd Quarter Miscellaneous Revenue ReportCity of Tukwila zip FROM: BY: DATE: SUBJECT: Jim Haggerton, Mayor Mayor Haggerton Finance and Safety Committee Peggy McCarthy, Finance Director Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator September 12, 2012 Sales Tax and Miscellaneous Revenue Report 2nd Quarter 2012 Schedule I Sales Tax Month 2011 Actual Collected Rec'd New Construction j 2012 j Variance 2011 j Actual j Actual Estimate Amt Other Industries j 2012 j j Actual Estimate Jan Mar 54 j 85 j 31 57% 985 j Feb Apr 76 63 (13) -17% 967 Mar May 118 48 (70) -59% 1,334 I Q -1 Totals 248 196 (52) -21% 3,286 Apr Jun 134 58 (76) -57% 1,118 May Jul 148 58 (90) -61% 1,059 Jun Aug 1251 731 (52) -42% 1,2621 I Q -2 Totals 407 j 189 j (218) -54% 3,439 j Subtotal Jan -Jun 1 655 i 385 (270) -41% 6,725 Jul Sep 135 60 (75) -56% 1,146 Aug Oct 108: I 60 I (48) -44°i 1,108 I Sep Nov 125 60 (65) -52% 1,202 I 0-3 Totals 368 180 (188) -51% 3,456 Oct Dec 145 60 (85) -59% 1, 076 Nov Jan 1081 601 (48) -44% 1,0931 Dec Feb 114 j 60 j (54) -47% 1,604 j Q -4 Totals I 367 i 180 (187) -51% 3,773 i I Totals 1,390 745 (645) -46% 13,954 944 j 1,036 1,174 3,154 1,070 1,128 1,204 1 3,402 j 6,556 i 1,130 1,040 1,140 3,310 1,040 1,140 I 1,540 j 3,720 i 13,586 in 1,000's TOTAL Variance 2011 j 2012 j Actual j Actual Amt ;Estimate; (41) -4% 1,039 1,029 j 69 7% 1,043 1,099 (160) -12% 1,452 1,223 $(132) -4% 3,534 3,351 (48) -4% 1,252 1,128 69 7% 1,207 1,186 (58) -5% 1,3871 1,2771 (37) -1% i 3,846 j 3,591 j $(169) -3% 7,380 i 6,942 i (16) -1% 1,281 1,190 (68) -6% 1,216 1,100 (62) -5% 1,327 1,200 $(146) -4% 3,824 3,490 (36) -3`l 1,221 1,100 47 4% 1,201 I 1,2001 (64) -4% 1,718 j 1,600 j (53) -1% 4,140 i 3,900 i $(368) -3% 15,344 14,332 PROJECTED 2012 SALES TAX REVENUE 14,332 ANNUAL SALES TAX REVENUE BUDGET 14,413 PROJECTED DEFICIT IN SALES TAX REVENUE (81) Variance Amt (10) -1 56 5 (229) -16 (183) -5 (124) -10 (21) -2 (110) -8 (255) -7 (438) -6% (91) -7% (116) -10 0 /'o (127) -10 (334) -9 (121) -10% (1) 0% (118) -7 (240) -6 $(1,012) -7% Total sales tax collections for the second quarter were $255K below the same quarter in the previous year and were $81 K less than prorated budget to date representing a 1.15% negative variance. As of June 30th, the City has collected $562,115 in sales tax mitigation which is 47% of the annual mitigation budget. The State reduced the 2 nd quarter mitigation amount by 3.4% or $41,000. Mitigation in 2013 will also be reduced by this amount reflecting the State's biennial budget reduction covering the period July 1, 2011 through June 20, 2013. c INFORMATIONAL MEMO Page 2 Below is a graph of businesses by type of industry showing overall change from previous year revenue receipts collected to date. Change YTD by Category 60.0 $63,555 Manufacturing 40.0% 20.0% 0.0°, %0 -20.0% -40.0% -60.0% -80.0% 100.0% $(272,693) Construction $(73,6 Retail T $91,269 Services $(183,654) MIS, New construction sales tax collections for second quarter were $218K below the same quarter in the previous year. This represents a 41% decrease compared to the first six months of receipts from new construction last year due to a 75% drop in sales tax activity related to new single family housing, a decrease of 66% in residential remodels, as well as reduction in activities from industrial building and new housing. The manufacturing category increased 46% from 2011 primarily due to metal product and aircraft manufacturing activities. The reflected 89% change in the miscellaneous category was largely due to revenue receipts from the amnesty program in the second quarter of the previous year. WARN Projects \Sales Tax Information\2012 \Info Memo Sales Tax- 02.08312012.docx 21 22 INFORMATIONAL MEMO Page 3 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Food Services had the highest year over year increase at $71,438 or 10.97 and Miscellaneous Store Retailers had an increase of or $45,275 or 19.85 Schedule II Group Name 448 Clothing and Accessories 452 General Merchandise Stores 722 Food Services, Drinking Places 443 Electronics and Appliances 423 Wholesale Trade, Durable Goods 441 Motor Vehicle and Parts Dealer 453 Miscellaneous Store Retailers 451 Sporting Goods, Hobby, Books 444 Building Material and Garden 721 Accommodation Mitigated NAICS Code YTD YTD 236 Dollar Prior Current Electronics and Appliances Diff. Diff. $901,465.43 $930,019.56 28,554 3.17% $878,601.10 $865,534.31 (13,067) -1.49% $651,080.65 $722,519.11 71,438 10.97% $688,849.73 $581,370.56 (107,479) 15.60% $543,337.73 $472,779.78 (70,558) 12.99% $308,807.22 $301,942.55 (6,865) -2.22% $228,103.33 $273,378.01 45,275 19.85% $289,016.71 $264,647.76 (24,369) -8.43% $241,050.73 $243,984.14 2,933 1.22% $217,986.78 $229,983.87 11,997 5.50% Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. There is less activity related to construction this year, which explains this category experiencing the greatest decline over other industries. The closing of businesses, particularly under Electronics and Appliances have also contributed to lower revenues from sales tax this year. Schedule III Group Name 236 Construction of Buildings 999 Nonclassifiable Establishments 443 Electronics and Appliances 423 Wholesale Trade, Durable Goods 518 Internet Service Providers 238 Specialty Trade Contractors 451 Sporting Goods, Hobby, Books 446 Health and Personal Care Store 452 General Merchandise Stores 532 Rental and Leasing Services Mitigated NAICS Code YTD YTD Dollar Prior Current Diff. Diff. 438,802.38 196,884.22 (241,918) 55.13% 203,250.24 20,828.75 (182,421) 89.75% 688,849.73 581,370.56 (107,479) 15.60% 543,337.73 472,779.78 (70,558) 12.99% 61,489.65 24,920.78 (36,569) 59.47% 198,765.34 166,168.66 (32,597) 16.40% 289,016.71 264,647.76 (24,369) -8.43% 110,310.30 90,223.11 (20,087) 18.21% 878,601.10 865,534.31 (13,067) -1.49% 182,279.76 171,394.28 (10,885) -5.97% WARN Projects \Sales Tax Information\2012 \Info Memo Sales Tax- 02- 08312012.docx 23 24 INFORMATIONAL MEMO Page 4 Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current year to date. Schedule IV Gambling Tax Gambling receipts for the 2nd quarter are 29% higher compared to gambling revenue for the same quarter in the previous year and 21 below budget. One casino is paying back taxes through a payment plan. Through August, we have received $135K in back taxes from this casino in addition to the taxes reported in the schedule. Schedule V shows monthly admission tax receipts for the prior year and current year to date. Schedule V Admissions Tax Sales 2011 2012 Quarter INCREASE (DECREASE) Actual Sales 2011 2012 Prorated Actual Budget Q1 Totals Quarter Actual Actual Budget Amount Amount Q1 475,118 465,494 625,536 (9,624) 2.03% (160,042) 25.58% Q2 382,817 495,196 625,536 112,379 29.36% (130,340) 20.84% Totals 857,936 960,690 1,251,072 1 102,754 11.98% (290,382) 23.21% gambling tax currently includes card games, punch boards, pull tabs, and amusement games Gambling receipts for the 2nd quarter are 29% higher compared to gambling revenue for the same quarter in the previous year and 21 below budget. One casino is paying back taxes through a payment plan. Through August, we have received $135K in back taxes from this casino in addition to the taxes reported in the schedule. Schedule V shows monthly admission tax receipts for the prior year and current year to date. Schedule V Admissions Tax Sales 2011 2012 Quarter Actual Actual 01 101,316 122,478 Q2 124,974 135,241 Q1 Totals 226,290 257,719 excludes golf course admissions tax 2012 Prorated Actual Budget Amount 146,751 21,162 146,750 10,267 293,501 1 31,429 INCREASE (DECREASE) Budget Amount 20.89% (24,273) 16.54% 8.22% (11, 509) -7.84% 13.89% (35,782) 12.19% Admission tax receipts are currently 12% below budget for the year, and nearly 14% above prior year actual receipts. Please let me know if you have any comments or questions. Thank you. 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