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HomeMy WebLinkAbout2021 07 SALES TAX REPORT GENERALADMINISTRATIVE SERVICES M E M O R A N D U M DATE: July 28, 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: July 2021 Sales Tax Distribution (May 2021 Activity) Monthly comparisons (July) July sales tax receipts (for May 2021 activity) were $2.8 million which is $680k (31.9%) over July 2020 and $603k (27.4%) over the July 2021 budget. Year-to-date comparisons (July) 2021 is currently 3.3 million (22.3%) above 2020 and 2.8 million (18.4%) over the annualized budget. See the five-year- to-date comparison and the historical trend information below: The budget was increased $2,000,000 with the second quarter budget adjustment. 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 56.7% from 2020 and 42.8% from 2019. This sector is improving mainly because of the high demand in food delivery service. Several food delivery apps are making greater profit during the pandemic than before. •Automotive – currently up 52.9% from 2020 and 28.3% from 2019. Demand for cars has bounced back from last year, and automakers resumed production after the initial shutdown. •General Retail – currently up 23.5% from 2020 and 20.3% from 2019. This sector is improving because of the increase in online sales during the pandemic. 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 4,384,543 4,477,062 4,549,613 4,432,315 5,474,877 4,370,057 1,104,820.53$ 25.3% 1,042,562.10$ 23.5% Construction 2,413,711 2,595,496 2,278,670 1,748,871 2,097,794 2,259,523 (161,728.84)$ -7.2% 348,922.70$ 20.0% Services 3,311,024 3,838,744 3,672,262 3,861,868 4,447,672 3,696,360 751,311.43$ 20.3% 585,804.01$ 15.2% Automotive/Gas 2,777,927 2,925,929 2,981,522 2,501,304 3,825,139 2,773,214 1,051,924.25$ 37.9% 1,323,834.64$ 52.9% Manufacturing 889,563 1,045,621 1,170,034 891,955 864,793 996,174 (131,381.24)$ -13.2% (27,162.61)$ -3.1% Wholesale 844,538 780,600 859,888 1,027,533 864,647 837,041 27,605.32$ 3.3% (162,886.81)$ -15.9% Miscellaneous 455,866 392,262 384,901 350,821 549,550 381,783 167,767.95$ 43.9% 198,729.48$ 56.7% YTD Total 15,077,171 16,055,715 15,896,890 14,814,668 18,124,472 15,314,152 2,810,319.40$ 18.4% 3,309,803.51$ 22.3% Annual total 26,331,634 28,428,635 28,318,580 26,452,836 28,425,623 26,959,932 1,465,691.02$ 5.4% 1,972,786.54$ 7.5% *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