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Home My WebLink AboutFS 2012-12-04 Item 2D - Report - 2012 Third Quarter Sales Tax and Miscellaneous Revenue City of Tukwila Jim Haggerton, Mayor ., INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Jennifer Ferrer-Santa Ines, Senior Fiscal Coordinator DATE: November 27, 2012 SUBJECT: Sales Tax and Miscellaneous Revenue Report-3rd Quarter 2012 Schedule I-Sales Tax in 1,000's 2011 2012 Variance --Month-- New j Other j Total New j Other j Total New Construction j Other Industries j Total Construction I Industries I Construction Industries I Amount % I Amount % 1 Amount % Collected Rec'd Jan Mar $ 54 j $ 985 j $ 1,039 $ 85 1 $ 944 $ 1,029 $ 31 57%j $ (41) -4%j$ (10) -1% Feb Apr 76 967 1,043 63 1,036 1,099 (13) -17%j 69 7%1 (2,142) 5% Mar May 118 1,334 1,452 48 1,174 1,222 70 -59% 160 -12°%1 2,674 -16% Q-1 Totals $ 248 ; 3,286 ; $ 3,534 $ 196; 3,154 ; $ 3,350 $ 52 -21°%; 132 -4%; 184 -5% Apr Jun 134 1,118 1,252 58 1,070 1,128 (76) -57%! (48) -4%! (2,380) -10% May Jul 148 1,059 1,207 58 1,128 1,186 (90) -61%! 69 7%! (2,393) -2% Jun Aug 1251 1,2621 1,387 731 1,2041 1,277 52 -42%I 58 -5%1 2,664 -8% Q-2 Totals $ 407 j 3,439 1 $ 3,846 $ 189 1 3,402 1 $ 3,591 $ 218 -54%1 37 -1%I 255 -7% Jul Sep 135 j 1,146 j 1,281 73 j 1,164 j 1,237 (62) -46%j 18 2%j (2,518) -3% Aug Oct 108 1,108 1,216 71 1,215 1,286 (37) -34%i 107 10%j (2,502) 6% Sep Nov 1251 1,2021 1,327 113 1,181 1,294 12 -10% 21 -2%1 2,621 -2% Q-3 Totals $ 368 ; 3,456 ; $ 3,824 $ 257 ; 3,560 ; $ 3,817 $ 111 -30%; 104 3%; 7 0% Subtotal Jan-Sep $ 1,023 10,181 $11,204 $ 642 10,116 $10,758 381 -37% 65 ' 1% 446 -4% Oct Dec 145 j 1,076 j 1,221 60 j 1,040 j 1,100 (85) -59%! (36) -3%! (2,321) .10°% Nov Jan 1081 1,093 1,201 601 1.1401 1,200 (48) -44%i 47 4%i (2,401) 0% Dec Feb 1141 1,6041 1,718 601 1.5401 1,600 54 -4'7%1 (64) �4°%I 3,318) -7% Q-4 Totals $ 367 ' 3,773 ' $ 4,140 $ 180 ' 3,720 ' $ 3,900 $ 187 -51%' 53 -1 0 ' 240 6°/a Totals $ 1,390 ' 13,954 ' $15,344 $ 822 ' 13,836 ' $14,658 568 -41%' 118 -1%' 686 -4% PROJECTED 2012 SALES TAX REVENUE 14,658 ANNUAL SALES TAX REVENUE 14,413 PROJECTED SURPLUS IN SALES TAX REVENUE $ 245 Total sales tax collections for the third quarter were $7K below the same quarter in the previous year. Annual sales tax is projected to exceed budget by $245K or 2.2%. As of September 30th, the City has collected $853,072 in sales tax mitigation which is 71% of the annual mitigation budget, representing a 4% unfavorable variance. 37 INFORMATIONAL MEMO Page 2 B8|Ovv is a graph of businesses by type Of industry showing overall Change from previous year revenue receipts collected todate. %Change YTD by Category Manufacturing $6,337 Services Automotive WhIsl Trade Retail Trade Construction Misc New construction sales tax collections for third quarter were $111K or 3096 b8|OVv the SaOOg quarter in the previous year. Year to date through the third quarter, collections from new construction sales tax were $381KOr37% below the prior year. Sales tax collected through the amnesty program in effect in 2011 was recorded in the Miscellaneous category. The p[OgrGrn was only in effect during 2011 which accounts for the decline in this category in2D12 compared to last year. cADvcuments and oomnSo\P*ogy-Mumm|8oUin8s\Tomvomry Internet roes\Cunmnt.o"uovmaxvxCmnVnfo Memo Sales Tax-Qo-11Soz01ua.uvcx 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 $110,470 or 11.19%, and Miscellaneous Store Retailers had an increase of$72,571 or 21.07%. Schedule II YTD YTD Dollar % Group Name Prior Current Diff. Diff. * 44s Clothing and Accessories $ 1,434,819 $ 1,472,702 $ 37,882 -0.15% * 452 General Merchandise Stores $ 1,396,684 $ 1,394,546 $ (2,138) -0.15% * 722 Food Services, Drinking Places $ 987,220 $ 1,097,690 $ 110,470 11.19% * 443 Electronics and Appliances $ 1,020,312 $ 813,842 $ (206,470) -20.24% * 423 Wholesale Trade, Durable Goods $ 786,636 $ 723,272 $ (63,364) -8.06% * 441 Motor Vehicle and Parts Dealer $ 449,093 $ 457,607 $ 8,513 1.90% * 453 Miscellaneous Store Retailers $ 344,452 $ 417,022 $ 72,571 21.07% * 451 Sporting Goods, Hobby, Books $ 448,758 $ 412,750 $ (36,009) -8.02% * 444 Building Material and Garden $ 377,628 $ 392,498 $ 14,870 3.94% 721 Accommodation $ 358,413 $ 378,707 $ 20,293 5.66% * Mitigated NAICS Code 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 YTD YTD Dollar % Group Name Prior Current Diff. Diff. 236 Construction of Buildings $ 653,446 $ 333,941 $ (319,505) -48.90% * 443 Electronics and Appliances $ 1,020,312 $ 813,842 $ (206,470) -20.24% 999 Nonclassifiable Establishments $ 210,797 $ 27,701 $ (183,096) -86.86% * 423 Wholesale Trade, Durable Goods $ 786,636 $ 723,272 $ (63,364) -8.06% 238 Specialty Trade Contractors $ 319,647 $ 265,919 $ (53,728) -16.81% 518 Internet Service Providers $ 75,232 $ 31,062 $ (44,171) -58.71% * 451 Sporting Goods, Hobby, Books $ 448,758 $ 412,750 $ (36,009) -8.02% 621 Ambulatory Health Care Service $ 54,124 $ 35,868 $ (18,256) -33.73% * 446 Health and Personal Care Store $ 152,576 $ 135,925 $ (16,651) -10.91% 237 Heavy and Civil Construction $ 51,157 $ 40,880 $ (10,277) -20.09% * Mitigated NAICS Code CADocuments and SettingsTeggy-KI-ocal SettingslTemporary Internet Files lContent.OutlooklGXVXCL4011nfo Memo Sales Tax-Q3-11302012 a.docx 39 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 ** 2012 INCREASE (DECREASE) Sales 2011 2012 Prorated 2012 to 2011 Actuals 2012 to 2012 Budget 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% Q3 $ 387,236 $ 454,973 $ 625,536 $ 67,738 17.49% $ 170,563 -27.27% Totals $ 1,245 171 $ 1,415 663 $ 1,876,608 $ 170,492 13.69% $ 460,945 -24.56% **gambling tax currently includes card games, punch boards, pull tabs, and amusement games Gambling receipts for the 3rd quarter are 17% higher compared to gambling revenue for the same quarter in the previous year and 27% below budget. One casino is paying back taxes through a payment plan. Through November 15th, we have received $220,579 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 *** 2012 INCREASE (DECREASE) Sales 2011 2012 Prorated 2012 to 2011 Actuals 2012 to 2012 Budget Quarter Actual Actual Budget Amount % Amount % Q1 $ 101,316 $ 122,478 $ 146,751 $ 21,162 20.89% $ (24,273) -16.54% Q2 124,974 135,241 146,750 10,267 8.22% (11,509) -7.84% Q3 121,907 127,694 146,750 5,787 4.75% 19,056 -12.99% Totals $ 348,197 $ 385,413 $ 440,251 $ 37,216 10.69% $ (54,838) -12.46% *** excludes golf course admissions tax Admission tax receipts are currently 12% below budget for the year, and about 11% above prior year actual receipts. Attachments • Sales Tax Summary C:1Documents and SettingsTeggy-KI-ocal Settngs\Temporary Internet Files lContent.OudookIGXVXCL4011nfo Memo Sales Tax-Q3-11302012 a.docx 40 sales tax summary third quarter 2012