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HomeMy WebLinkAbout2021 08 SALES TAX REPORT GENERAL ADMINISTRATIVE SERVICES M E M O R A N D U M DATE: September 16, 2021 TO: Randy Corman, Council President Members of Renton City Council CC: Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer FROM: Junyi Wang, Tax Auditor SUBJECT: August 2021 Sales Tax Distribution (June 2021 Activity) Monthly comparisons (August) August sales tax receipts (for June 2021 activity) were $2.97 million which is $509k (20.7%) over August 2020 and $539k (22.2%) over the August 2021 budget. Year-to-date comparisons (August) 2021 is currently 3.8 million (22.1%) above 2020 and 3.3 million (18.9%) over the annualized budget. See the five-year- to-date comparison and the historical trend information below: COVID-19 will continue to influence the sales tax figures throughout 2020 – 2021. We see a significant increase in sales receipts this month compared to the same period in 2020. Some industries such as construction and manufacturing have not caught up to 2019 pre-pandemic performance, but we should see them improving as more projects and business activities resumed. Some industries have recovered from the pandemic and exceeded 2020 and 2019 sales. • Miscellaneous – currently up 58.4% from 2020 and 49.1% from 2019. This sector is improving mainly because of the high demand in food delivery service. Several food delivery apps are making greater profits during the pandemic than before. • Automotive – currently up 49.3% from 2020 and 31.3% from 2019. Demand for cars has bounced back from last year, and automakers resumed production after the initial shutdown. • Construction – currently up 22.3% from 2020 and down 1% from 2019. This sector is recovering as the post- pandemic demand surges for construction services, but the shortages of construction materials may have a negative impact on the construction industry. 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. Please see the attached pages for detailed information. 2021 YTD $ diff % diff $ diff % diff General Retail 5,077,816 5,160,892 5,265,649 5,269,389 6,335,713 5,077,345 1,258,367.55$ 24.8%1,066,323.76$ 20.2% Construction 2,828,855 3,001,576 2,615,637 2,007,561 2,454,225 2,643,344 (189,119.21)$ -7.2%446,663.76$ 22.3% Services 3,901,077 4,476,311 4,600,383 4,415,498 5,150,763 4,247,638 903,125.06$ 21.3%735,264.98$ 16.7% Automotive/Gas 3,168,239 3,375,697 3,417,715 3,006,571 4,489,186 3,202,940 1,286,245.83$ 40.2%1,482,615.24$ 49.3% Manufacturing 1,001,529 1,177,338 1,316,769 1,014,011 1,013,424 1,132,986 (119,562.27)$ -10.6%(587.21)$ -0.1% Wholesale 1,002,949 989,807 1,075,403 1,153,346 1,001,580 1,004,128 (2,548.08)$ -0.3%(151,766.50)$ -13.2% Miscellaneous 518,428 447,958 438,055 412,466 653,215 440,116 213,098.51$ 48.4%240,748.59$ 58.4% YTD Total 17,498,892 18,629,578 18,729,610 17,278,842 21,098,105 17,748,498 3,349,607.40$ 18.9%3,819,262.62$ 22.1% Annual total 26,331,634 28,428,635 28,318,580 26,452,836 28,840,488 26,959,932 1,880,555.75$ 7.0%2,387,651.28$ 9.0% *Bolded figure in each sector is the highest YTD of the five years shown 2021 Actual/Budget2021 YTD Budget 2021 - 2020 YTD2017 YTD Actual 2018 YTD Actual 2019 YTD Actual 2020 YTD ActualSector