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HomeMy WebLinkAbout2021 09 SALES TAX REPORT GENERAL ADMINISTRATIVE SERVICES M E M O R A N D U M DATE: October 8th, 2021 TO: Randy Corman, Council President Members of Renton City Council CC: Armondo Pavone, Mayor Ed VanValey, Chief Administrative Officer FROM: Nate Malone, Budget & Accounting Manager SUBJECT: September 2021 Sales Tax Distribution (July 2021 Activity) Monthly comparisons (September) September sales tax receipts (for July 2021 activity) were $2.96 million which is $521k (21.4%) over September 2020 and $672k (29.4%) over the September 2021 budget. Year-to-date comparisons (September) 2021 is currently 4.3 million (22%) above 2020 and 4.0 million (20.1%) 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. • General Retail – currently up 18.9% from 2020 and 19.6% for 2019. All sectors within general retail are performing well above 2020 including miscellaneous retail trade up 40% from 2020. • Automotive – currently up 46.6% from 2020 and 30.9% from 2019. Demand for cars has bounced back from last year, and this sector has seen significant inflation driving prices higher. • Construction – currently up 25.8% from 2020 and down 1% from 2019. This sector is recovering as the post- pandemic demand surges for construction services, but this sector remains highly dependent on large project to drive revenues. 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 5,728,168 5,857,225 5,987,478 6,023,971 7,162,942 5,754,685 1,408,257.51$ 24.5%1,138,971.91$ 18.9% Construction 3,105,429 3,425,069 2,909,674 2,266,145 2,850,330 2,968,891 (118,561.20)$ -4.0%584,185.02$ 25.8% Services 4,428,524 5,143,829 5,222,735 5,037,220 5,839,778 4,764,670 1,075,107.40$ 22.6%802,557.62$ 15.9% Automotive/Gas 3,578,016 3,802,135 3,867,597 3,454,267 5,064,900 3,631,215 1,433,684.27$ 39.5%1,610,632.78$ 46.6% Manufacturing 1,146,161 1,395,739 1,411,875 1,176,512 1,138,005 1,279,534 (141,529.25)$ -11.1%(38,506.43)$ -3.3% Wholesale 1,093,619 1,176,216 1,220,267 1,277,647 1,246,877 1,136,209 110,667.66$ 9.7%(30,770.62)$ -2.4% Miscellaneous 581,740 501,149 489,540 482,589 755,847 501,027 254,819.62$ 50.9%273,257.40$ 56.6% YTD Total 19,661,658 21,301,362 21,109,167 19,718,350 24,058,678 20,036,232 4,022,446.02$ 20.1%4,340,327.68$ 22.0% Annual total 26,331,634 28,428,635 28,318,580 26,452,836 29,270,786 26,959,932 2,310,854.02$ 8.6%2,817,949.55$ 10.7% *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