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HomeMy WebLinkAbout2018-10 SALES TAX REPORT GENERAL ADMINISTRATIVE SERVICES M E M O R A N D U M DATE: November 14th, 2018 TO: Ed Prince, Council President Members of Renton City Council CC: Denis Law, Mayor Robert Harrison, Chief Administrative Officer FROM: Nate Malone, Tax Auditor SUBJECT: October 2018 Sales Tax Distribution (August 2018 Activity) Monthly comparisons (October) October sales tax receipts (for August 2018 activity) were $2.44 million which is $165k (7%) above October 2017 and $106k (5%) above the October 2018 budget. Year-to-date comparisons (October) 2018 is currently $1.8 million (8.2%) above 2017 and $1.7 million (7.9%) over the annualized budget. See the five-year- to-date comparison and the historical trend information below: The annual budget-by-sector has been based upon the average of the previous five years proportionate to the overall receipts. The monthly budget-by-sector is based upon the five-year average by month, proportionate to the annual totals. Construction – The construction industry sales tax revenues are heavily influenced by large projects currently ongoing. Approximately $1.5 million (40%) of construction receipts appear to be related to current large projects. The industry as a whole is up $324k (9%) over 2017 and $705k (23%) over budget. Services – The services sector is up $745k (15%) over 2017 and $907k (19%) over the annualized budget. The service industry is experiencing substantial increases in the following categories: Food services & drinking places, Administrative & support services, Ambulatory medical/healthcare services, and Hospitals. These increases have more than compensated for the significant drop in Telecommunications services in 2018. Please see the attached pages for detailed information.