HomeMy WebLinkAboutIR 10570INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 1 of 4
SUBJECT: FEBRUARY 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 February 2021 (Fiscal Year 2021, Period 5) collection results
on April 7th, 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.
FEBRUARY NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
The City’s net sales tax collection is down $272,292 or -2.3%, compared to the same month last year.
As depicted in the following table, the City experienced a decrease of $469,052 or -4.0 % 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. The State experienced a net collection decrease of -2.37% compared to last year.
In addition to the pandemic trend on sales tax collections, the unusual winter weather disaster also
proved to slow sales tax collections for the month of February. Store closures likely caused by
widespread power outages and an extended taxpayer remittance deadline allowed by the State may
be negatively affecting current collections.
$8.4 $8.4 $8.8 $9.1 $9.9 $10.8 $10.9 $11.8 $11.8 $11.5
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Millions
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 2 of 4
SUBJECT: FEBRUARY 2021 – SALES TAX UPDATE
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
COLLECTION DETAIL FOR CITY SALES TAX
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS. SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE
RATE OF 1.75%. THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS. AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON
RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
The City’s General Fund sales tax collections as of February are 103.9% to budget, and at 100.3%
through the same period last year. The City’s Crime Control and Prevention District Fund (CCPD) sales
tax collections as of February are 103.4% to budget, and 101.0% through the same period last year.
The comparison of performance to budget is based on a historic three year collection trend by month.
Fiscal years 2017, 2018 and 2019 were included in this calculation, while fiscal year 2020 was excluded
due to the irregularity caused by the pandemic.
February 20 February 21 Variance ($)Variance (%)
Current Period Collections $11,678,476 $11,209,424 ($469,052)(4.0%)
Other Collections*287,922 225,488 (62,434)(21.7%)
Single Local Rate*62,384 101,398 39,014 62.5%
Audit Adjustments (6,650)209,921 216,570 3256.9%
Service Fee (240,443)(234,925)5,518 2.3%
Retainage 29,115 27,206 (1,909)(6.6%)
Net Collections $11,810,804 $11,538,512 ($272,292)(2.3%)
0.6%
(7.8)%
(12.9)%
(5.1)%
2.7%
(2.6)%(0.2)%
0.6%
(1.3)%
5.4%
1.5%1.7%
(4.0)%
Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 3 of 4
SUBJECT: FEBRUARY 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 February
Current Receipts
Through February
FY2020 Receipts
Through February
$67,609,608 $70,230,497 $70,018,394
CRIME CONTROL AND PREVENTION DISTRICT 32,686,057 33,807,069 33,473,538
TOTAL $100,295,665 $104,037,567 $103,491,932
CITY OF FORT WORTH
GENERAL FUND
Adopted Amended Fiscal Year
Budget Budget Projections ($)(%)
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. 21-10570
To the Mayor and Members of the City Council April 13, 2021
Page 4 of 4
SUBJECT: FEBRUARY 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 February YTD
EL PASO 100.0%104.7%109.0%102.4%
PLANO 96.0%91.2%104.5%96.4%
GARLAND 100.7%100.6%99.8%100.5%
FRISCO 108.9%104.5%99.8%106.5%
FORT WORTH 101.9%97.3%97.7%100.3%
DALLAS 96.2%90.7%95.7%95.0%
HOUSTON 93.5%92.3%95.1%93.5%
ARLINGTON 104.9%104.6%95.0%103.2%
AUSTIN 96.7%91.1%93.2%95.0%
SAN ANTONIO 100.6%100.6%93.0%99.3%
GRAND PRAIRIE 106.0%99.9%90.3%102.1%
MCKINNEY 109.7%112.5%86.4%105.6%
IRVING 97.3%89.4%78.3%92.3%
STATE TOTAL 96.1%86.7%97.7%94.5%