HomeMy WebLinkAbout2021/01/12-Attachments-IR 21-10533 - Sales Tax November 2020INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10533
To the Mayor and Members of the City Council January 12, 2021
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SUBJECT: NOVEMBER 2020 — SALES TAX UPDATE
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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.
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted November 2020 (Fiscal Year 2021, Period 2) collection results
on January 6th, 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.
NOVEMBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY)
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The City's net sales tax collection is up $1,180,834 or 9.3%, compared to the same month last year. As
depicted in the table below, the City experienced $698,832 or a 5.4% increase in current period
collections when compared to last year's collections for the same month. Current period collections
include transactions that were collected for the current period on schedule within the due date. Current
collections are performing in line with expectations considering the adverse effects of COVID-19. Net
Collections performed better than the State's decrease of -5.05% compared to last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10533
To the Mayor and Members of the City Council
January 12, 2021
Page 2 of 4
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SUBJECT:
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NOVEMBER 2020 — SALES TAX UPDATE
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COLLECTION DETAIL FOR CITY
SALES TAX
November 19
November 20
Variance ($)
Variance (%)
Current Period Collections
$13,039,613
$13,738,444
$698,832
5.4%
Other Collections*
25,278
146,089
120,811
477.9%
Single Local Rate
62,321
133,678
71,358
114.5%
Audit Adjustments
(183,127)
160,386
343,513
187.6%
Service Fee
(258,882)
(283,572)
(24,690)
(9.5%)
Retainage
25,016
(3,973)
(28,989)
(115.9%)
Net Collections
$12,710,219
$13,891,053
$1,180,834
9.3%
"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.
8.4%
4.8%
3.8% ■
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
(5.1)%
2.7%
0.6%
(0.2)%
(2.6)% (1.3)%
(7.8)% _
(12.9)%
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20
The City's General Fund sales tax collections as of November are 105.1 % to budget, and at 103.6%
for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax
collections as of November are 105.4% to budget, and 104.5% for 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.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
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*a SUBJECT: NOVEMBER 2020 — SALES TAX UPDATE
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No. 21-10533
January 12, 2021
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CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Current Receipts FY2020 Receipts
CITY OF FORT WORTH Budget as of November Through November Through November
GENERAL FUND $26,282,557 $27,614,900 $26,662,363
CRIME CONTROL AND PREVENTION DISTRICT 12,706,377 13,395,223 12,813,831
TOTAL $38,988,934 $41,010,122 $39,476,194
CITY OF FORT WORTH BUDGET COMPARISON — FY2021
Projected
Adopted
Amended
Fiscal Year
Variance to Amended
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%
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.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10533
To the Mayor and Members of the City Council
January 12, 2021
Page 4 of 4
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*a SUBJECT: NOVEMBER 2020 - SALES TAX UPDATE
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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
City October November
YTD
MCKINNEY 106.6% 114.8%
110.6%
FRISCO 105.8% 113.5%
109.6%
GRAND PRAIRIE 100.1 % 111.7%
105.7%
FORT WORTH 98.4% 109.3%
103.6%
ARLINGTON 105.3% 107.3%
106.3%
GARLAND 97.6% 106.8%
102.1 %
IRVING 90.2% 105.8%
97.5%
SAN ANTONIO 99.9% 101.5%
100.7%
EL PASO 99.5% 101.4%
100.4%
AUSTI N 97.1 % 98.1 %
97.6%
HOUSTON 87.9% 95.9%
91.7%
DALLAS 91.7% 93.3%
92.5%
PLANO 95.8% 92.3%
94.1 %
STATE TOTAL 93.7% 95.0%
94.3%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
If you have any questions, please call Terry Hanson, Assistant Director of Budget and Analysis, at
817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS