HomeMy WebLinkAboutIR 10553INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10553
To the Mayor and Members of the City Council March 23, 2021
Page 1 of 4
SUBJECT: JANUARY 2021 – SALES TAX UPDATE
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
Sales tax revenue represents approximately twenty-two percent of
the City’s General Fund anticipated revenue in Fiscal Year 2021.
It is the second largest revenue source, with property tax being the
largest. In addition, sales tax revenue represents the largest
revenue source in the Crime Control and Prevention District Fund.
Staff is committed to providing regular updates on this important
and sometimes volatile revenue source.
The Texas Comptroller’s Office posted January 2021 (Fiscal Year 2021, Period 4) collection results on
March 10th, 2021. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers'
returns. This report provides Fort Worth’s sales tax collection compared to last year and the impact on
the current year’s budget. The past year has included changes from legislation reformed in how sales
tax is remitted to the state comptroller, as well as the affects from a global pandemic. This activity is
being closely monitored and will be reported on if significant impact is expected.
JANUARY NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
The City’s net sales tax collection is down $361,189 or -2.7%, compared to the same month last year.
As depicted in the following table, the City experienced $215,289 or a 1.7% increase in current period
collections when compared to last year’s collections for the same month. Current period collections
include transactions that were collected for the current period on schedule within the due date. Current
collections are performing in line with expectations considering the adverse effects of COVID-19. The
State experienced a net collection decrease of -13.26% compared to last year.
$8.1 $8.8 $9.0 $10.2 $9.7 $10.7 $11.3 $12.1 $13.3 $13.0
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Millions
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10553
To the Mayor and Members of the City Council March 23, 2021
Page 2 of 4
SUBJECT: JANUARY 2021 – SALES TAX UPDATE
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
COLLECTION DETAIL FOR CITY SALES TAX
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS. SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE
RATE OF 1.75%. THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS. AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON
RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
The City’s General Fund sales tax collections as of January are 105.6% to budget, and at 100.8%
through the same period last year. The City’s Crime Control and Prevention District Fund (CCPD) sales
tax collections as of January are 105.0% to budget, and 101.5% through the same period last year. The
comparison of performance to budget is based on a historic three year collection trend by month. Fiscal
years 2017, 2018 and 2019 were included in this calculation, while fiscal year 2020 was excluded due
to the irregularity caused by the pandemic.
January 20 January 21 Variance ($)Variance (%)
Current Period Collections $12,487,455 $12,702,744 $215,289 1.7%
Other Collections*612,038 239,163 (372,875)(60.9%)
Single Local Rate 62,977 115,474 52,497 83.4%
Audit Adjustments 345,107 76,901 (268,205)(77.7%)
Service Fee (270,152)(262,686)7,466 2.8%
Retainage 101,628 106,268 4,640 4.6%
Net Collections $13,339,054 $12,977,865 ($361,189)(2.7%)
4.8%
0.6%
(7.8)%
(12.9)%
(5.1)%
2.7%
(2.6)%
(0.2)%
0.6%
(1.3)%
5.4%
1.5%1.7%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10553
To the Mayor and Members of the City Council March 23, 2021
Page 3 of 4
SUBJECT: JANUARY 2021 – SALES TAX UPDATE
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
CITY OF FORT WORTH BUDGET COMPARISON – FY2021
The City anticipates collecting $168,248,488 by fiscal year end, which matches original estimates in the
FY2021 adopted budget. This is 1.56% over fiscal year 2020 actual collections. At the time of budget
development, this represented a 4% increase over the June 2020 projected sales tax. Staff will continue
to provide regular updates as financial analysis continues for sales tax impacts due to COVID-19.
Budget as of January
Current Receipts
Through January
FY2020 Receipts
Through January
$55,563,000 $58,691,986 $58,207,590
CRIME CONTROL AND PREVENTION DISTRICT 26,862,090 28,216,233 27,803,458
TOTAL $82,425,090 $86,908,219 $86,011,048
CITY OF FORT WORTH
GENERAL FUND
Adopted Amended Fiscal Year
Budget Budget Projections ($)(%)
CITY OF FORT WORTH
GENERAL FUND $168,248,455 $168,248,455 $168,248,455 $0 0.0%
CRIME CONTROL & PREVENTION DISTRICT $79,213,635 $79,213,635 $79,213,635 $0 0.0%
Variance to Amended
Projected
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10553
To the Mayor and Members of the City Council March 23, 2021
Page 4 of 4
SUBJECT: JANUARY 2021 – SALES TAX UPDATE
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
The chart below indicates how current year sales tax net collections in Fort Worth and other select cities
in the state compare to FY2020 collections for the same period.
CITIES COMPARISON – NET COLLECTIONS
FY2021 vs. FY2020
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
If you have any questions, please call Mark McAvoy, Director of Planning and Data Analytics, at 817-
392-6222.
David Cooke
City Manager
City 1st Quarter January YTD
MCKINNEY 109.7%112.5%110.3%
EL PASO 100.0%104.7%101.0%
ARLINGTON 104.9%104.6%104.9%
FRISCO 108.9%104.5%107.9%
GARLAND 100.7%100.6%100.7%
SAN ANTONIO 100.6%100.6%100.6%
GRAND PRAIRIE 106.0%99.9%104.6%
FORT WORTH 101.9%97.3%100.8%
HOUSTON 93.5%92.3%93.2%
PLANO 96.0%91.2%94.9%
AUSTIN 96.7%91.1%95.4%
DALLAS 96.2%90.7%94.9%
IRVING 97.3%89.4%95.4%
STATE TOTAL 96.1%86.7%93.9%