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HomeMy WebLinkAbout2021 06 SALES TAX REPORT GENERALADMINISTRATIVE SERVICES M E M O R A N D U M DATE: July 14, 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: June 2021 Sales Tax Distribution (April 2021 Activity) Monthly comparisons (June) June sales tax receipts (for April 2021 activity) were $2.5 million which is $568k (28.9%) over June 2020 and $619k (32.3%) over the June 2021 budget. Year-to-date comparisons (June) 2021 is currently 2.6 million (20.7%) above 2020 and 3.2 million (26.3%) 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. •Automotive – currently up 52.6% from 2020 and 27.3% from 2019. Demand for cars has bounced back from last year, and automakers resumed production after the initial shutdown. However, the current chip shortage may negatively affect automotive production again. •Miscellaneous – currently up 55.8% from 2020 and 46.6% 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. •General Retail – currently up 20.6% from 2020 and 16.8% 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 3,750,210 3,829,326 3,917,763 3,794,533 4,577,519 3,479,903 1,097,615.58$ 31.5% 782,985.83$ 20.6% Construction 2,062,986 2,240,082 1,950,817 1,521,398 1,697,497 1,795,383 (97,886.08)$ -5.5% 176,099.18$ 11.6% Services 2,818,105 3,296,992 3,136,976 3,331,442 3,790,984 2,980,679 810,305.52$ 27.2% 459,541.95$ 13.8% Automotive/Gas 2,365,026 2,449,161 2,525,493 2,107,352 3,215,644 2,179,516 1,036,128.28$ 47.5% 1,108,292.36$ 52.6% Manufacturing 748,812 850,899 1,008,096 759,911 767,454 781,906 (14,451.96)$ -1.8% 7,543.46$ 1.0% Wholesale 736,136 665,326 693,989 867,845 794,250 605,373 188,876.97$ 31.2% (73,595.94)$ -8.5% Miscellaneous 359,420 338,264 320,871 301,996 470,579 297,503 173,076.47$ 58.2% 168,583.39$ 55.8% YTD Total 12,840,694 13,670,050 13,554,004 12,684,477 15,313,928 12,120,263 3,193,664.79$ 26.3% 2,629,450.23$ 20.7% Annual total 26,331,634 28,428,635 28,318,580 26,452,836 27,428,956 24,959,932 2,469,024.14$ 9.9% 976,119.67$ 3.7% *Bolded figure in each sector is the highest YTD of the five years shown Sector 2021 Actual/Budget2021 YTD Budget 2021 - 2020 YTD2017 YTD Actual 2018 YTD Actual 2019 YTD Actual 2020 YTD Actual